Oil Prices Surge to $110 per Barrel Amid Middle East and Ukraine Escalations
Oil prices surged as Brent reached $110 per barrel amid escalating Middle East conflicts, Strait of Hormuz tanker attacks, Houthi strikes on Saudi Arabia, and collapsing energy truces between Russia and Ukraine.
Oil prices surged on Friday amid escalating Iranian attacks in the Strait of Hormuz, Houthi missile launches targeting Saudi Arabia, and Ukraine's announcement that it will continue targeting Russian refineries. Brent crude futures reached $110 per barrel during trading for the first time since May, closing slightly lower at $109.86, a 3.5% increase. US West Texas Intermediate (WTI) crude rose 3.5% to settle at $101.41 per barrel.
Global Supply Disruptions and Market Impact
During the week, WTI jumped by more than 10%, while Brent climbed by nearly 5%. Saudi Arabia intercepted several missiles fired over the Red Sea, with one targeting the Yanbu oil export terminal, according to a military spokesman. In the Strait of Hormuz, at least nine tankers and cargo ships have been attacked since Sunday as part of an Iranian effort to choke off oil exports through the shipping lane.
Geopolitical Tensions and Energy Infrastructure
Meanwhile, the energy ceasefire attempted by President Donald Trump between Ukraine and Russia quickly collapsed. The Kremlin continued attacking Ukrainian infrastructure despite the nominal truce, and President Volodymyr Zelensky announced that Kyiv would resume strikes on Russian refineries in response. Diesel prices have soared this year, with the US national average reaching $6.33 per gallon on Friday, more than 70% above the same period last year.
