Brent crude futures reached a session high of $110 per barrel on Friday, the first time since May, before closing at $109.86, a 3.7% gain. The price surge followed Iran's escalation of attacks in the Strait of Hormuz, missile fire by Houthi militants toward Saudi Arabia, and Ukrainian President Volodymyr Zelenskyy's vow to resume strikes on Russian refineries.
U.S. West Texas Intermediate (WTI) rose 3.5% to settle at $101.41 per barrel. WTI prices climbed more than 10% this week, while Brent advanced nearly 5%.
In the Strait of Hormuz, at least nine tankers and cargo ships have come under attack since Sunday as Iran attempts to restrict oil exports through the waterway. U.S. Central Command reported that Iran sank the container ship GFS Pride on Wednesday. Singapore's maritime authority stated that the crew of the Singapore-registered vessel was safely evacuated. The International Maritime Organization said the attacks left three seafarers injured and two missing this week.
Kpler data showed crude exports through Hormuz pulled back to 9.4 million barrels per day for the week ended Wednesday, roughly 70% of the average before the Iran war, after shipments had touched prewar levels in September.
Saudi Arabia intercepted several missiles fired over the Red Sea on Friday, including one heading toward the Yanbu oil export terminal, a military spokesman said. The military also reported destroying three drones in Riyadh and the southern regions. Iran-allied Houthi militants in Yemen have repeatedly fired at Saudi Arabia this week. The kingdom's energy ministry said one of Aramco's administrative buildings in Dhahran was hit on Tuesday. The Houthis attacked Riyadh's international airport on Oct. 10, killing 12 people and injuring more than 300.
The "energy ceasefire" that President Donald Trump attempted to broker between Ukraine and Russia has unraveled, with the Kremlin continuing to attack Ukrainian infrastructure despite the truce. President Volodymyr Zelenskyy said Kyiv would resume strikes on Russian refineries in retaliation.
Diesel prices in the U.S. averaged $6.33 a gallon on Friday, more than 70% above the same period last year, according to AAA data. The increase is attributed to Ukraine's attacks on Russian refineries and Iranian strikes on Middle East energy infrastructure.
U.S. crude oil inventories also fell by more than 8 million barrels for the week ended Oct. 9, according to the Energy Information Administration. The decline was driven by production shut-ins on the Gulf Coast caused by Hurricane Isaias.