Brent crude settles near $110 as Middle East and Russia supply fears rise
Brent crude settled at $109.86 a barrel Friday, up 3.7%, after touching $110 for the first time since May, Reuters reported. WTI closed at $101.41. Traders cited Hormuz disruptions, a Saudi intercept near Yanbu, and questions about Russian diesel supply.
AI-assisted · US Brief desk · Sources listed below
What happened
Brent crude futures settled at $109.86 a barrel on Friday, up $3.94 or 3.7%, after touching $110 for the first time since May, Reuters reported. U.S. West Texas Intermediate settled at $101.41, up $3.44 or 3.5%. For the week, Reuters said Brent was up about 4.9% and WTI about 10.4%.
Why it matters
Oil near $110 feeds gasoline and diesel costs that are already a midterm issue in the United States, and it intersects with Trump's decision Friday to waive new Graham Act Russia sanctions that could have added secondary tariffs on major Russian oil buyers.
More context
Why prices jumped: Traders pointed to tighter Middle East supply risks after a surge of attacks around the Strait of Hormuz and to uncertainty over how much diesel Russia can deliver under its new U.S. deal. A Saudi-led coalition said it intercepted a ballistic missile aimed toward the Red Sea port of Yanbu; consultants Rapidan Energy Group said initial reports showed no damage to Yanbu infrastructure, per Reuters.
Russia and Ukraine: Ukraine struck a Russian oil refinery Thursday after President Volodymyr Zelenskyy said Kyiv was ending an energy-site pause announced by President Trump. Two industry sources told Reuters Russia's Ryazan refinery suspended a primary crude distillation unit after a drone attack. "Those two factors are just continuing to have traders be buyers," BOK Financial's Dennis Kissler told Reuters, citing Middle East conflict and doubts about Russian diesel volumes.
Official supply responses: The International Energy Agency agreed Thursday to release more than 20 million barrels of fuel, Reuters said. The U.S. Energy Department on Friday issued a request for proposal to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve.
Caveats: Consultancy Energy Aspects cited rumours of attacks on Saudi energy infrastructure and unverified Israeli reports that Iran may be preparing a pre-emptive strike; Reuters relayed that note with the unverified label. Those claims are not confirmed.
2 listed sources
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Settle prices from Reuters as republished by The Globe and Mail. Energy Aspects' note about unverified reports is attributed and labeled unverified.
Like US Brief? You can support it with a tip.