Brent crude oil surged to $110 a barrel, marking its highest level since May 2026. The price spike was driven by escalating conflicts and growing supply concerns, particularly in major oil export regions. Iran-backed Houthi rebels continued their attacks on Saudi Arabia, while Russia and Ukraine engaged in reciprocal strikes on energy infrastructure. These tensions have heightened fears of further disruptions in global oil supplies.
The last time Brent crude reached this price was nearly five months ago, following a brief agreement to reopen the Strait of Hormuz. Despite cargo volumes through the waterway nearing pre-war levels, prices remain elevated, posing challenges for US President Donald Trump as he seeks to manage energy costs ahead of the November 2026 midterm elections.
US lawmakers introduced a bill to block Trump’s deal with Russia to release several hundred million barrels of diesel. The legislation reflects widespread opposition to any measures that could bolster Russia’s war chest. Meanwhile, diesel and gasoline futures also rose, with diesel settling at $4.90 a gallon in New York, reaching the highest-ever seasonal levels.
Analysts are closely monitoring developments in the Persian Gulf, with escalation fears adding to market uncertainty. The US has sought to tame prices by drawing from emergency stockpiles and lobbying other nations to do the same. On Friday, the US offered up to 17 million barrels from the Strategic Petroleum Reserve. Crude oil prices have surged more than 75% this year due to ongoing conflicts in the Middle East and Russia.