On Friday, crude oil prices experienced a notable increase, with Brent futures peaking at $110 per barrel before closing at $109.86, marking a 3.7% rise. U.S. West Texas Intermediate (WTI) also rose by 3.5% to settle at $101.41 per barrel. This week's gains were substantial, with WTI up over 10% and Brent nearly 5%.
The price surge is attributed to heightened tensions in the Strait of Hormuz, where Iran has intensified attacks, and Houthi militants have targeted Saudi Arabia, including missile strikes that have threatened oil infrastructure.
Saudi Arabia's military reported intercepting missiles aimed at its oil export terminal, and attacks on maritime vessels in the region have raised concerns about oil supply disruptions.
Additionally, Ukraine's commitment to strike Russian refineries in retaliation for ongoing attacks has further contributed to rising diesel prices, which are now over 70% higher than last year at an average of $6.33 per gallon in the U.S.
The situation is compounded by a significant drop in U.S. crude inventories, which fell by more than 8 million barrels due to production halts from Hurricane Isaias. These developments indicate a volatile market environment that could have lasting effects on oil prices and supply chains