On Friday, with Iran escalating attacks in the Strait of Hormuz, Houthi militants launching missiles at Saudi Arabia, and Ukraine vowing to continue targeting Russian refineries, crude oil prices soared significantly.
Brent crude oil futures briefly touched $110 per barrel during trading, the first time since May, before slightly falling to close at $109.86 per barrel, up 3.7%.
U.S. West Texas Intermediate crude oil ( WTI ) rose 3.5%, closing at $101.41 per barrel. WTI has risen more than 10% this week, while Brent crude oil has increased by nearly 5%.
A military spokesman stated that Saudi Arabia intercepted several missiles launched from the Red Sea on Friday, one of which was headed towards the oil export terminal of Yanbu (Yanbu). The military also reported that three drones were destroyed in Riyadh and the southern regions of Saudi Arabia.
Yemeni Houthi forces, allied with Iran, launched multiple attacks on Saudi Arabia this week. According to the Saudi Ministry of Energy, an administrative building of Aramco in Dhahran ( Dhahran ) was hit on Tuesday. On October 10th, these forces also attacked Riyadh International Airport, resulting in 12 deaths and over 300 injuries.
In the Strait of Hormuz, at least 9 oil tankers and cargo ships have been attacked since Sunday, as Iran attempts to cut off oil exports through this strait. The U.S. Central Command stated that Iran sank a container ship registered in Singapore on Wednesday, identified as GFS Pride, and the crew has been safely evacuated.
The International Maritime Organization stated that these attacks have resulted in 3 seafarers being injured and 2 people going missing this week.
Data provided by the energy research institution Kpler shows that as of Wednesday, crude oil exports through the Strait of Hormuz have declined from their pre-war levels reached in September, falling to 9.4 million barrels per day, which is about 70% of Iran's average level before the war.
Meanwhile, the "energy ceasefire" between Ukraine and Russia that U.S. President Donald Trump sought to facilitate quickly collapsed. During the so-called ceasefire, the Kremlin continued to attack Ukrainian infrastructure. Ukrainian President Volodymyr Zelensky stated that Kiev would resume attacks on Russian refineries as a form of retaliation.
Due to Ukraine's attacks on Russian refineries and Iran's attacks on the energy infrastructure in the Middle East, diesel prices have risen significantly this year. Data from the American Automobile Association ( AAA ) shows that on Friday, the average price of diesel in the United States was $6.33 per gallon, which is more than 70% higher than the same period last year.
The U.S. Energy Information Administration stated that due to the interruption of production along the Gulf of Mexico coast caused by Hurricane Isabels ( Hurricane Isaias ), commercial inventories in the United States decreased by over 8 million barrels as of the week ending October 9th, which also contributed to the rise in U.S. crude oil prices.
