Oil prices climbed sharply as rising tensions in the Middle East increased concerns about global energy supplies. Attacks across Saudi Arabia and threats to commercial shipping pushed crude benchmarks higher.
Brent crude futures settled at $116.72 per barrel, gaining $3.55, or 3.14%. This marked Brent’s highest closing level since April 29.
US West Texas Intermediate (WTI) crude also recorded a strong increase. It closed at $103.27 per barrel, rising $3.80, or 3.8%.
For the week, Brent crude gained 6%, while WTI advanced 2.3%. The increases reflected growing fears that further attacks could disrupt oil production and transportation.
Adam Turnquist, chief cross-asset strategist at LPL Financial, said supply disruption fears supported the market’s rise. He linked the increase to attacks by Iranian-backed Houthi rebels across Saudi Arabia, including energy infrastructure.
Attacks Raise Concerns Over Oil Supplies
Tensions intensified between Saudi Arabia, the world’s largest crude oil exporter, and Yemen-based Houthi rebels. Reuters reported that Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday.
Meanwhile, the United Arab Emirates reported an oil spill off the coast of Umm Al Quwain. The UAE Ministry of Climate Change and Environment confirmed the incident.
However, authorities did not identify the tanker involved or explain what caused the spill.
Shipping sources also reported that the Gem No. 2 supertanker was hit by an unidentified projectile on October 9. The incident occurred about 13 nautical miles west of Al Jazeera in the UAE.
Andrew Lipow, president of Lipow Oil Associates, said attacks on tankers had increased market concerns. He warned that oil shipments through the Strait of Hormuz could change suddenly.
The Strait of Hormuz is a major global shipping route for energy supplies. Any disruption there could affect oil availability and increase transportation costs.
Shipping Risks Add Pressure to Oil Prices
Clashes involving the Houthis and a Saudi-led coalition have added to regional uncertainty. The conflict has also raised concerns about the Bab el-Mandeb Strait, another important shipping passage near the Red Sea.
According to a Washington-based think tank tracking maritime security incidents, October has been the worst month for commercial shipping attacks in the Strait of Hormuz and nearby waterways.
US President Donald Trump said on Friday that the war with Iran could end quickly. However, he also suggested allowing the conflict to gradually wind down.
Market participants are closely watching developments across the region. Further attacks could create additional pressure on global energy supplies.
Countries Release Oil From Strategic Reserves
Governments have also taken steps to address supply concerns. The US Department of Energy authorised an emergency exchange of up to 400,000 barrels from the Strategic Petroleum Reserve.
The move aims to address a supply disruption affecting Phillips 66’s Lake Charles refinery in Louisiana.
The US reserve has fallen to its lowest level since 1982. Previous releases were made during the war involving Iran and after Russia invaded Ukraine.
Germany’s national oil stockpiling agency also issued a tender to sell diesel, heating oil, and crude oil from strategic reserves. This marked Germany’s first such release since G7 countries agreed to coordinated action in early October.
Oil Production and Supply Remain Under Pressure
Libya’s National Oil Corporation reported that a pipeline valve serving the Hamada and Tahara oilfields had been shut. The closure reduced production at both fields.
Meanwhile, ship-tracking data showed Russian diesel heading toward New York. The shipment followed an export agreement between Moscow and Washington.
The agreement was announced as the US sought to ease rising diesel prices ahead of the November 3 midterm elections.
US energy companies kept their total rig count unchanged for a second consecutive week. Baker Hughes reported that the combined oil and gas rig count remained at 603 for the week ending October 23.
The rig count provides an early indication of future production activity.
Overall, oil prices remain sensitive to geopolitical tensions, shipping risks, and supply disruptions. Further developments in the Middle East could determine whether crude prices continue rising in the coming days.
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