Brent crude touched $110 per barrel Friday, marking its highest level since May, as geopolitical tensions in two key oil-producing regions pushed prices sharply higher.
Brent futures closed at $109.86, up 3.7% on the day. U.S. West Texas Intermediate rose 3.5% to $101.41. Both benchmarks posted significant weekly gains, with WTI up more than 10% and Brent up nearly 5%.
Iran escalated attacks in the Strait of Hormuz, a critical chokepoint through which roughly one-third of globally traded seaborne oil passes. At least nine tankers and cargo ships came under attack since Sunday, according to reports cited by CNBC. Iran's military sank the Singapore-registered container ship GFS Pride on Wednesday, with the crew safely evacuated. The attacks left three seafarers injured and two missing this week, the International Maritime Organization said.
Saudi Arabia intercepted multiple missiles fired by Iran-allied Houthi militants over the Red Sea on Friday, including one headed toward the Yanbu oil export terminal. Three drones were destroyed in Riyadh and southern regions, according to Saudi military statements. On Tuesday, Aramco's administrative building in Dhahran was struck in a Houthi attack, the kingdom's energy ministry confirmed.
Oil exports through the Strait of Hormuz have declined from pre-war levels. Crude shipments stood at 9.4 million barrels per day for the week ended Wednesday, roughly 70% of pre-war averages, according to energy researcher Kpler cited by the source.
In the Ukraine conflict, an attempted "energy ceasefire" between Kyiv and Moscow brokered by President Donald Trump collapsed within days. The Kremlin continued attacking Ukrainian infrastructure despite the truce. President Volodymyr Zelenskyy said Ukraine would resume strikes on Russian refineries in retaliation.
Diesel prices surged to an average of $6.33 per gallon Friday, more than 70% above the prior year, reflecting both Ukrainian strikes on Russian refineries and Iranian attacks on Middle Eastern energy infrastructure, according to AAA data. U.S. commercial crude inventories fell more than 8 million barrels for the week ended October 9, partly due to production shut-ins on the Gulf Coast from Hurricane Isaias, the Energy Information Administration reported.