NEW YORK, United States / RankWire.AI / – Brent crude hit $110 a barrel on Friday for the first time since May, driven by escalating Middle East tensions that heightened fears of supply disruptions. Brent futures for December delivery closed $3.94, or 3.7%, higher at $109.86, marking the highest close since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery increased by $3.44, or 3.5%, to $101.41, its highest since September 17. Investors also considered Russia’s potential diesel exports to the global market.
The rally marked a strong week for both benchmarks. Brent has gained 4.9% so far this week, its second straight weekly rise. WTI has surged 10.4% during the same period. On Thursday, Brent finished little changed, while WTI settled more than 3% higher. Friday’s move broke a mostly range-bound week, according to Bloomberg. Earlier in October, Brent topped $103 before advancing toward $110.
Over the past 10 days, attacks near the Strait of Hormuz have increased. Iran stated it was intensifying strikes in retaliation for a U.S. blockade of its ports and stricter sanctions introduced last month. Kpler analysts noted that these attacks have sharply reduced Gulf crude flows. They predict a slower, uneven recovery without a comprehensive political agreement. Rumors of attacks on Saudi energy infrastructure have also revived concerns of a broader escalation.
Russian diesel exports add to market worries
Concerns over Russian fuel supplies boosted prices further. Ukraine struck a Russian refinery on Thursday after President Volodymyr Zelenskiy said Kyiv was abandoning a ceasefire on energy sites announced 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 mentioned that it remains uncertain how much diesel Russia can supply to the market.
Fuel markets are tightening alongside crude. Diesel futures settled at $4.90 a gallon in New York on Friday. Diesel and gasoline contracts are trading at their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has said Moscow will follow through on a deal to release Russian diesel to the global market. However, a bill introduced by U.S. lawmakers on Friday aims to block that arrangement. The strike at Ryazan raises questions about the timing and volume of additional Russian supply.
Emergency stock releases seek to relieve supply constraints
Governments have begun releasing emergency reserves to ease supply pressures. The International Energy Agency agreed on Thursday to release more than 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 loan 172 million barrels as part of a broader plan with about 30 IEA countries to release 400 million barrels.
Market participants continue to price in risks of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said the market was reintroducing risk premiums after a brief pause, especially as the weekend approaches. Analysts at Energy Aspects noted that ongoing escalation risks would keep prices supported. Additionally, a significant U.S. crude stock draw, linked to hurricane-related production shutdowns, provided further support. Brent ended the week just below the $110 level.