NEW YORK, United States / RankWire.AI / – Brent crude reached $110 a barrel on Friday for the first time since May amid rising Middle East tensions that have heightened fears of tighter supply. Brent futures for December settlement 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, reaching its highest level since September 17. Market participants also considered Russia’s potential diesel exports to the global market.
The rally extended a robust week for both benchmarks, with Brent gaining 4.9% so far, marking its second consecutive weekly rise. WTI experienced a 10.4% increase over the same period. On Thursday, Brent finished largely unchanged while WTI closed more than 3% higher. The move on Friday broke a week that was mostly range-bound, according to Bloomberg. Earlier in October, Brent topped $103 before advancing toward $110.
Over the past ten days, attacks near the Strait of Hormuz have intensified. Iran has stated it is increasing strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. Analysts at Kpler have indicated that these attacks have significantly reduced crude flows from the Gulf. They foresee a slower, uneven recovery without a comprehensive political agreement. Rumors of assaults on Saudi energy infrastructure have also reignited fears of broader escalation.
Russian diesel exports fuel market concerns
Concerns over Russian fuel supplies have added upward pressure on prices. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy declared Ukraine was abandoning an energy-site ceasefire previously announced by U.S. President Donald Trump. Two sources from the industry told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial commented that the extent of Russia’s diesel delivery to the market remains uncertain.
Alongside crude, fuel markets have also tightened. Diesel futures settled at $4.90 per gallon in New York on Friday, with diesel and gasoline contracts reaching their highest seasonal levels on record, according to Bloomberg. President Trump has stated that Moscow will honor a deal to release Russian diesel to the global market. However, a bill introduced by U.S. lawmakers on Friday aims to block that agreement. The strike at Ryazan has further complicated expectations regarding additional supply in the near term.
Strategic reserves released to mitigate supply pressures
Governments are actively deploying emergency reserves to address supply constraints. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. Additionally, on Friday, the U.S. Department of Energy announced a request for proposals to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington had agreed to lend 172 million barrels as part of a broader initiative involving about 30 IEA countries to release a total of 400 million barrels.
Market participants continue to factor in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted that the market was reintroducing risk premiums after a brief period of stability, especially ahead of the weekend. Analysts at Energy Aspects highlighted that ongoing escalation risks are likely to sustain price support. A significant drawdown in U.S. crude inventories, driven by hurricane-related production shutdowns, also contributed to the upward momentum. Brent concluded the week just shy of the $110 level.