Crude oil prices experienced a significant increase on Friday, driven by Iran’s intensified actions in the Strait of Hormuz, missile strikes by Houthi militants targeting Saudi Arabia, and Ukraine’s commitment to continue its assaults on Russian refineries. Brent futures reached a session peak of $110 per barrel for the first time since May, subsequently retreating slightly to finish at $109.86, reflecting an increase of 3.7%. U.S. West Texas Intermediate increased by 3.5%, concluding at $101.41 per barrel. WTI experienced an increase exceeding 10% this week, while Brent saw an advancement of nearly 5%. On Friday, Saudi Arabia successfully intercepted multiple missiles launched over the Red Sea, among which was one targeting the oil export terminal Yanbu, according to a military spokesman. The military reported the destruction of three drones in the kingdom’s Riyadh and southern regions.
Iran-allied Houthi militants in Yemen have engaged in repeated attacks on Saudi Arabia this week. Oil giant Aramco faced an assault when one of its administrative buildings in Dhahran was struck on Tuesday, according to the kingdom’s energy ministry. The Houthis launched an assault on Riyadh’s international airport on October 10, resulting in 12 fatalities and over 300 injuries. In the Strait of Hormuz, a minimum of nine tankers and cargo vessels have faced assaults since Sunday, as Iran seeks to restrict oil exports via this critical maritime route. On Wednesday, U.S. Central Command reported that Iran sank the container ship GFS Pride. The crew of the Singapore-registered vessel was successfully evacuated, as reported by Singapore’s maritime authority. The recent attacks have resulted in injuries to three seafarers and left two others unaccounted for this week, as reported by the International Maritime Organization.
Crude exports via Hormuz have declined following a return to prewar levels in September. Shipments reached 9.4 million barrels per day for the week ending Wednesday, representing approximately 70% of the average prior to the Iran conflict, as reported by the energy researcher Kpler. Meanwhile, the “energy ceasefire” that President Donald Trump attempted to broker between Ukraine and Russia has rapidly disintegrated. The Kremlin persisted in its assaults on Ukrainian infrastructure, notwithstanding the purported truce. President Volodymyr Zelenskyy stated that Kyiv would recommence attacks on Russian refineries as a form of retaliation. Diesel prices have experienced a significant increase this year, attributed to Ukraine’s assaults on Russian refineries and Iranian attacks on energy infrastructure in the Middle East.
The fuel cost an average of $6.33 a gallon in the U.S. on Friday, reflecting an increase of over 70% compared to the same period last year, as reported by data. U.S. crude oil prices experienced an upward trajectory, influenced by a significant reduction exceeding 8 million barrels in commercial inventories for the week ending October 9. This decline was attributed to production shut-ins along the Gulf Coast resulting from Hurricane Isaias, as reported by the Energy Information Administration.
