Crude oil prices on Thursday recorded their biggest daily advance in a month, as an attack by Iran on an oil tanker threatened to curb the recent recovery in Middle East petroleum supplies.

Brent crude climbed 4.1%, settling above $104 a barrel, its highest level since September. Although oil shipments through the Strait of Hormuz have increased in recent weeks, the frequency of Iranian attacks on vessels in that waterway has also been rising.

The first Atlantic hurricane of the year to strike the U.S. Gulf of Mexico cut oil production, lending further support to crude futures, while surging freight rates pushed the actual prices paid by consumers even higher. Fawad Razaqzada, a market analyst at Forex.com, said: "Depleted inventories have created a sustained need to restock, so the longer-term trend for oil prices will remain skewed to the upside." He added: "In the short term, some positive progress toward a U.S.-Iran agreement is needed to bring any relief."

President Donald Trump said he would not strike Iran again before the November 3 midterm elections, pulling crude futures back from their intraday highs. WTI crude futures for November delivery rose 3.6%, settling at $91.49 a barrel. Brent crude futures for December delivery gained 4.1%, closing at $104.28 a barrel.