Brent crude oil prices surged to US$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 US$109.86, up US$3.94 or 3.7%, while US West Texas Intermediate (WTI) crude futures closed at US$101.41, a 3.5% increase. The week saw Brent rise 4.9% and WTI climb 10.4%, driven by fears of escalating conflicts and supply disruptions.
Reports of potential Iranian strikes on Saudi energy infrastructure and increased attacks around the Strait of Hormuz heightened supply concerns. A Saudi-led coalition intercepted a ballistic missile targeting the Red Sea city of Yanbu, a critical port for oil exports. Meanwhile, Iran escalated strikes in response to US sanctions, leading to a sharp decline in Gulf crude flows, according to Kpler analysts.
Additional pressure came from Ukraine's strike on a Russian oil refinery, which suspended operations following a drone attack. The International Energy Agency responded by agreeing to release over 20 million barrels of fuel to the market, while the US sought to exchange up to 17 million barrels from its Strategic Petroleum Reserve. Analysts noted that ongoing conflicts and supply uncertainties continued to drive buying in the oil markets.