Brent crude oil prices surged past $110 a barrel on Friday, October 16, marking the first time since May that the benchmark hit this level. The sharp rise came amid escalating tensions in key oil-producing regions, including Iran's attacks in the Strait of Hormuz and ongoing strikes by Houthis on Saudi Arabia. Brent crude closed at $109.86, while US crude, or West Texas Intermediate (WTI), climbed above $101 a barrel, extending its weekly gain to 10%.
Saudi Arabia reported intercepting several missiles and drones on Friday, including one targeting the Yanbu terminal of state-owned oil giant Saudi Aramco. Meanwhile, Iran continued its assaults on commercial vessels in the Strait of Hormuz, sinking the container ship GFS Pride earlier in the week, according to the US Central Command. Despite these attacks, crude oil exports remained robust, though still below pre-war levels, with shipments averaging 9.4 million barrels per day last week.
The conflict between Russia and Ukraine also contributed to the price surge, as both sides vowed to continue strikes on each other's energy infrastructure. Additionally, Hurricane Isaias disrupted US crude oil production, leading to a significant drop in inventories. The Energy Information Administration noted that production was halted along the Gulf Coast due to the hurricane.