Brent crude oil prices surged to $110 a barrel on Friday, marking the highest level since May, as geopolitical tensions in the Middle East and concerns over Russian diesel supplies fueled market anxiety. Brent crude futures settled at $109.86, up $3.94 or 3.7%, while US West Texas Intermediate (WTI) crude futures closed at $101.41, a 3.5% increase. This week alone, Brent has risen 4.9% and WTI 10.4%.
The price spike was driven by fears of escalating conflicts in the Middle East, particularly reports suggesting Iran might be preparing a pre-emptive strike following unusual military movements detected by Western intelligence. A Saudi-led coalition intercepted a ballistic missile targeting the Red Sea city of Yanbu, a critical port for Saudi Arabia's oil exports. Meanwhile, attacks around the Strait of Hormuz have intensified, with Iran responding to US sanctions by increasing strikes, which has sharply reduced Gulf crude flows.
Supply concerns were further exacerbated by a drone attack on Russia's Ryazan oil refinery, which suspended operations at a primary crude distillation unit. Ukraine's strike on the refinery came after President Volodymyr Zelenskiy criticized US President Donald Trump's willingness to strike deals with Moscow. Traders remain cautious about the availability of diesel from Russia, compounding the market's uncertainty.
In an effort to ease supply pressures, the International Energy Agency agreed to release over 20 million barrels of fuel to the market. The United States also requested proposals for an exchange of up to 17 million barrels of crude oil from its Strategic Petroleum Reserve. These measures aim to stabilize the market amid persistent geopolitical risks and supply disruptions.