Crude oil prices rose sharply Friday as Iran escalated attacks in the Strait of Hormuz, Houthi militants fired missiles at Saudi Arabia and Ukraine vowed to keep striking Russian refineries.
Brent futures hit a session high of $110 per barrel for the first time since May before easing slightly to close up 3.7% at $109.86.
U.S. West Texas Intermediate rose 3.5% to settle at $101.41 per barrel. WTI added more than 10% this week while Brent advanced nearly 5%.
Saudi Arabia intercepted several missiles fired Friday over the Red Sea including one that was heading toward the oil export terminal Yanbu, a military spokesman said. Three drones were also destroyed in the kingdom’s Riyadh and southern regions, the military said.
Iran-allied Houthi militants in Yemen have repeatedly fired at Saudi Arabia this week. One of Saudi Aramco’s administrative buildings in Dhahran was hit on Tuesday, the kingdom’s energy ministry said. The militants attacked Riyadh’s international airport on Oct. 10, killing 12 and injuring more than 300.
In the Strait of Hormuz, at least nine tankers and cargo ships have come under attack since Sunday as Iran tries to choke off oil exports through the strait. Iran sank the container ship GFS Pride on Wednesday, according to U.S. Central Command. The crew of the Singapore-registered ship was safely evacuated.
The attacks have left three seafarers injured and two missing this week, according to the International Maritime Organization.
Crude exports through Hormuz have pulled back after touching prewar levels in September. Shipments stood at 9.4 million barrels per day for the week ended Wednesday, about 70% of the average before the Iran war, according to data provided by the energy researcher Kpler.
Meanwhile, the “energy ceasefire” that President Donald Trump tried to broker between Ukraine and Russia has quickly unraveled. The Kremlin continued attacking Ukrainian infrastructure despite the supposed truce. President Volodymyr Zelenskyy said Kyiv would resume strikes on Russian refineries in retaliation.
Diesel prices have surged this year due to Ukraine’s attacks on Russian refineries and Iranian strikes on energy infrastructure in the Middle East. The fuel cost an average of $6.33 a gallon in the U.S. Friday, more than 70% above the same period last year, according to AAA data.
U.S. crude oil prices were also driven higher by a big decline of more than 8 million barrels for the week ended Oct. 9 in commercial inventories due to production shut-ins on the Gulf Coast from Hurricane Isaias, according to the Energy Information Administration.
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