NEW YORK, United States / RankWire.AI / – Brent crude hit $110 a barrel on Friday, marking the first time since May, driven by escalating Middle East tensions that heightened fears of supply shortages. Brent futures for December delivery closed $3.94, or 3.7%, higher at $109.86, the highest since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery increased $3.44, or 3.5%, to $101.41, reaching its highest point since September 17. Market participants also considered Russia’s diesel exports to the global market.
The rally extended a robust week for both benchmarks. Brent has risen 4.9% so far this week, marking its second straight weekly gain. WTI surged 10.4% over the same period. On Thursday, Brent saw little change, while WTI settled more than 3% higher. Friday’s movement broke a mostly 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 claimed it was increasing strikes in retaliation for a U.S. blockade of its ports and stricter sanctions introduced last month. Analysts at Kpler indicated that these attacks have sharply reduced Gulf crude flows. They anticipate a slower, uneven recovery without a comprehensive political agreement. Additionally, rumors of assaults on Saudi energy infrastructure have revived concerns of a broader escalation.
Russian diesel exports fuel market worries
Concerns over Russian fuel supplies added to the upward pressure on prices. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy announced Kyiv was abandoning a ceasefire on energy sites, initially declared 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 noted that how much diesel Russia can supply remains uncertain.
Alongside crude, fuel markets have tightened. Diesel futures settled at $4.90 a gallon in New York on Friday, with diesel and gasoline contracts at their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has stated that Moscow will fulfill a deal to release Russian diesel globally. However, a bill introduced by U.S. lawmakers on Friday aims to block that arrangement. The Ryazan strike has raised questions about the timing and volume of any additional supply.
Strategic reserves releases seek to mitigate supply pressures
Governments are actively releasing supplies from emergency reserves. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a proposal to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington agreed to lend 172 million barrels as part of a broader plan involving around 30 IEA countries to release 400 million barrels.
Market participants continue to price in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, mentioned that the market is reintroducing risk premiums after a brief pause, especially heading into the weekend. Analysts at Energy Aspects noted that ongoing escalation risks are likely to support prices. Additionally, a significant U.S. crude stock draw, linked to hurricane-related production outages, contributed to the upward momentum. Brent closed the week just below the $110 threshold.