Oil Prices Soar to Nearly $110 as Middle East Tensions Escalate
Oil prices surged overnight into Friday, reaching nearly $110 per barrel for Brent crude oil from the North Sea for November delivery. This significant increase is attributed to new attacks on tankers in the Strait of Hormuz and clashes between Yemeni Houthi militias and Saudi-backed forces.
The price of Brent crude oil has risen by almost 80 percent since the beginning of the year, but remains below its interim war-driven high of just over $126 per barrel reached in April. Fighting has intensified throughout the Middle East over the past two weeks, contributing to the sharp rise in oil prices.
Prices for European natural gas and freight rates for oil tankers have also increased sharply, while refinery products such as diesel have become even more expensive due to the consequences of the war between Russia and Ukraine. In the U.S., the average price per gallon of diesel rose to $6 for the first time, according to Gasbuddy.
Two ships were attacked in the Strait of Hormuz, with their captain reporting seeing 'four unidentified projectiles' strike the vessels, according to the UK Maritime Trade Operations (UKMTO). The Houthi militia has captured the strategically important port city of Mocha on Yemen's west coast, which is a key access point to the Bab al-Mandab Strait at the southern end of the Red Sea.