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 percent, while US West Texas Intermediate (WTI) crude futures closed at $101.41, a 3.5 percent increase. The week saw Brent rise 4.9 percent and WTI climb 10.4 percent.
Escalating tensions in the Middle East, particularly reports of potential Iranian strikes on Saudi energy infrastructure, drove the price increases. A Saudi-led coalition intercepted a ballistic missile targeting the Red Sea city of Yanbu, a critical port for bypassing the Strait of Hormuz. Meanwhile, Iran escalated attacks in response to US sanctions, disrupting Gulf crude flows.
Supply concerns were further heightened 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 followed President Volodymyr Zelenskiy's announcement of abandoning a ceasefire on energy sites. Analysts noted that ongoing conflict in the region and uncertainty over Russian diesel supplies continued to push prices higher.
In an effort to ease supply pressures, the International Energy Agency agreed to release over 20 million barrels of fuel, while the US Department of Energy sought proposals for exchanging up to 17 million barrels from the Strategic Petroleum Reserve. The US had previously committed to loaning 172 million barrels as part of a broader deal with IEA countries to release 400 million barrels from global reserves.