Noida, Oct 17 (APAC Media): Crude oil prices surged on Friday amid escalating tensions in the Middle East, with Iran intensifying attacks in the Strait of Hormuz, Houthi militants launching missiles at Saudi Arabia, and Ukraine pledging to continue strikes on Russian oil refineries.
Brent crude futures climbed to a session high of $110 a barrel, crossing the threshold for the first time since May, before pairing gains to settle at $109.89, up 3.8%.
U.S. West Texas Intermediate (WTI) crude futures rose 3.6% to settle at $101.50 a barrel. For the week, WTI gained more than 10%, while Brent crude prices climbed nearly 4%.
Saudi Arabia’s military said it intercepted multiple missiles over the Red Sea on Friday, including one believed to be headed for the Yanbu oil export terminal. The military also confirmed the destruction of three drones over Riyadh and areas in the kingdom’s south.
Yemen’s Iran-backed Houthi group has launched repeated attacks targeting Saudi Arabia this week. On Tuesday, an attack struck an administrative building belonging to Saudi Arabia’s state-owned oil company Aramco in Dhahran, according to the Energy Ministry.
The Houthis struck Riyadh’s international airport on October 10, killing 12 people and leaving more than 300 injured.
Meanwhile, at least nine tankers and cargo vessels have been attacked in the Strait of Hormuz since Sunday, as Iran seeks to disrupt oil shipments through the strategic waterway.
The U.S. Central Command said Iran sank the container ship GFS Pride on Wednesday. The crew of the Singapore-registered vessel has been safely evacuated, confirmed by Singapore’s maritime authority.
The attacks have left three seafarers injured and two others missing this week, according to the International Maritime Organization.
Crude oil exports through the Strait of Hormuz have declined after recovering to prewar levels in September. Shipments averaged 9.4 million barrels per day in the week ending Wednesday, roughly 70% of the prewar average, according to energy research firm Kpler.
Separately, a proposed energy ceasefire between Ukraine and Russia has rapidly collapsed, despite U.S. President Donald Trump’s efforts to broker it. Moscow continued strikes on Ukrainian infrastructure despite the reported truce, prompting Ukrainian President Volodymyr Zelenskyy to announce plans to resume attacks on Russian oil refineries in retaliation.
Diesel prices have risen sharply this year amid Ukrainian strikes on Russian refineries and Iranian attacks on energy infrastructure across the Middle East. The average U.S. diesel price reached $6.33 per gallon on Friday, more than 70% higher than a year earlier, according to data from the American Automobile Association (AAA).
U.S. crude prices also came under upward pressure after commercial oil inventories fell by more than 8 million barrels in the week ending October 9. The decline was attributed to production shutdowns along the Gulf Coast following Hurricane Isaias, according to the U.S. Energy Information Administration.
-ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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