Crude oil prices rose sharply on Friday as Iran stepped up attacks in the Strait of Hormuz, Houthi militants fired missiles at Saudi Arabia and Ukraine vowed to continue hitting Russian refineries.
Brent Futures reached a high of $110 a barrel for the first time since May before easing slightly to close 3.7% higher at $109.86.
WE West Texas Intermediate rose 3.5% to $101.41 per barrel. WTI gained more than 10% this week while Brent rose almost 5%.
At least nine tankers and cargo ships have been attacked near Hormuz since Sunday as Iran attempts to stifle oil exports through the strait. Iran sank the container ship GFS Pride on Wednesday, according to US Central Command. The crew of the Singapore-registered vessel were safely evacuated.
The attacks left three injured and two missing this week, according to the International Maritime Organization.
Crude exports via Hormuz declined after reaching pre-war levels in September. Shipments totaled 9.4 million barrels per day for the week ended Wednesday, about 70% of Iran’s pre-war average, according to data provided by energy researcher Kpler.
Meanwhile, the “energy ceasefire” that President Donald Trump attempted to broker between Ukraine and Russia quickly collapsed. The Kremlin continued to attack Ukrainian infrastructure despite the so-called truce. President Volodymyr Zelensky said Kyiv would resume strikes against Russian refineries in retaliation.
Diesel prices have surged this year due to Ukrainian attacks on Russian refineries and Iranian strikes on energy infrastructure in the Middle East. Fuel cost an average of $6.33 per gallon in the United States on Friday, more than 70% more than the same time last year, according to AAA data.
Iran-allied Houthi militants in Yemen have also repeatedly fired missiles and drones 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 Houthis attacked King Khalid International Airport in the Saudi capital Riyadh on October 10, killing 12 people and injuring more than 300 others, in a major escalation.
U.S. crude oil prices were also pushed higher by a sharp decline of more than 8 million barrels for the week ended Oct. 9 in commercial inventories due to production shutdowns on the Gulf Coast from Hurricane Isaias, according to the Energy Information Administration.
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