NEW YORK, United States / RankWire.AI / – Brent crude reached $110 per barrel on Friday for the first time since May, driven by increasing Middle East tensions that raised fears of tighter supply. Brent futures for December delivery closed $3.94, or 3.7%, higher at $109.86, marking the highest close since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery increased by $3.44, or 3.5%, to $101.41, the highest level since September 17. Market participants also considered Russia’s potential diesel exports to the global market.
The rally extended a robust week for both benchmarks. So far this week, Brent has gained 4.9%, marking its second straight weekly rise, while WTI has surged 10.4%. On Thursday, Brent’s price remained relatively unchanged, whereas WTI settled more than 3% higher. The move on Friday broke a largely range-bound week, according to Bloomberg. Earlier in October, Brent had topped $103 before the recent push toward $110.
Over the past ten days, attacks near the Strait of Hormuz have intensified. Iran announced it was escalating strikes in response to a U.S. blockade of its ports and stricter sanctions introduced last month. Analysts at Kpler reported that these attacks had significantly curtailed Gulf crude flows, expecting a slow and uneven recovery without a comprehensive political resolution. Rumors of assaults on Saudi energy infrastructure have also revived concerns of a broader escalation.
Russian diesel exports contribute to market worries
Uncertainty surrounding Russian fuel supplies has bolstered prices further. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy stated Kyiv was abandoning an energy-site ceasefire previously announced by U.S. President Donald Trump. Two industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial commented that it remains uncertain how much diesel Russia can supply to the global market.
The tightening of fuel markets has paralleled crude oil prices. Diesel futures settled at $4.90 a gallon in New York on Friday, with diesel and gasoline contracts reaching their highest seasonal levels on record, according to Bloomberg. President Trump has stated that Moscow will follow through on an agreement to release Russian diesel into global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block that deal. The strike at Ryazan has added further uncertainty regarding the timing of any additional supply.
Strategic reserves releases seek to alleviate supply pressures
Governments are taking measures to increase supply by tapping into emergency reserves. The International Energy Agency agreed on Thursday to release more than 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a request for proposals to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Washington had previously committed to loan 172 million barrels as part of a broader plan involving about 30 IEA countries, aimed at releasing a total of 400 million barrels.
Market participants continue to price in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted that the market was reintroducing risk premiums after a brief relief, especially as the weekend approaches. Analysts at Energy Aspects highlighted that ongoing escalation risks would maintain upward pressure on prices. A substantial U.S. crude stock draw, linked to hurricane-related production shutdowns, also supported the market. Brent closed the week just below the $110 level.