Oil prices soared on Friday after Iran escalated its attacks in the Strait of Hormuz, Houthi militants fired missiles into Saudi Arabia and Ukraine said it would continue attacks on Russian oil refineries.
brent After hitting a high of $110 per barrel for the first time since May, futures fell slightly to close at $109.86, up 3.7%.
us west texas intermediate The price rose 3.5% and settled at $101.41 per barrel. WTI is up more than 10% this week and Brent is up nearly 5%.
Saudi Arabia intercepted several missiles fired over the Red Sea on Friday, including one headed for the oil export terminal Yanbu, a military spokesperson announced. Three drones were also destroyed in Saudi Arabia’s Riyadh and southern regions, the military said.
Yemen’s Iranian-allied Houthi militants have fired repeatedly at Saudi Arabia this week. Oil giant Aramco came under attack on Tuesday when one of its administrative buildings in Dhahran was attacked, according to the Saudi Energy Ministry.
The Houthis attacked Riyadh’s international airport on October 10, killing 12 people and injuring more than 300.
At least nine tankers and cargo ships have come under attack in the Strait of Hormuz since Sunday as Iran seeks to block oil exports through the waterway. U.S. Central Command announced Wednesday that Iran has sunk the container ship GFS Pride. The Singapore Maritime Authority said the crew of the Singapore-flagged vessel was safely evacuated.
The attack this week left three sailors injured and two missing, according to the International Maritime Organization.
Crude oil exports via Hormuz reached pre-war levels in September, then declined. Shipments for the week ending Wednesday were 9.4 million barrels a day, about 70% of the pre-Iran war average, according to data provided by energy research firm Kupler.
Meanwhile, an “energy ceasefire” that President Donald Trump tried to broker between Ukraine and Russia quickly fell apart. Despite the armistice, the Kremlin continued to attack Ukraine’s infrastructure. President Volodymyr Zelenskiy said Kiev would resume attacks on Russian oil refineries in retaliation.
Diesel prices have soared this year due to Ukraine’s attacks on Russian refineries and Iran’s attacks on energy infrastructure in the Middle East. Fuel costs in the U.S. averaged $6.33 per gallon on Friday, more than 70% higher than the same period last year, according to AAA data.
The rise in U.S. oil prices also came from a sharp drop in commercial inventories of more than 8 million barrels in the week ending Oct. 9 due to production shutdowns on the Gulf Coast caused by Hurricane Isaias, the Energy Information Administration said.
