Brent crude touches $110 a barrel for the first time since May

Brent crude futures touched US$110 a barrel on Friday (Oct 16) for the first time since May, settling US$3.94 or 3.7 per cent higher at US$109.86 — the highest since May 19 — while US West Texas Intermediate (WTI) crude rose US$3.44 or 3.5 per cent to US$101.41, the highest since Sep 17. So far this week, Brent is up 4.9 per cent and WTI 10.4 per cent.

“WTI and Brent reversed earlier losses as escalation fears resurfaced amid rumours of attacks on Saudi energy infrastructure,” Energy Aspects said in a note, adding that unverified Israeli reports suggest Iran may be preparing a pre-emptive strike after unusual military movements detected by Western intelligence.

A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards the Red Sea city of Yanbu, a port critical to Saudi Arabia’s efforts to bypass the Strait of Hormuz. Initial reports indicated no damage to Yanbu’s infrastructure, Rapidan Energy Group said.

Attacks around the Strait of Hormuz have surged over the past 10 days as Iran steps up strikes in response to the US blockade of its ports and tougher sanctions introduced last month. “Intensified Iranian attacks drove Gulf crude flows sharply lower,” Kpler analysts said on Thursday, expecting a slower, more uneven recovery absent a comprehensive political deal.

The Ryazan oil refinery has suspended operations at a primary crude distillation unit after a Thursday drone attack, two industry sources told Reuters, as traders questioned how much diesel Russia can deliver to markets.

Sources: Reuters via The Business Times (https://www.businesstimes.com.sg/companies-markets/oil-touches-us110-barrel-first-time-may-middle-east-russia-supply-fears); BusinessToday (https://www.businesstoday.in/amp/markets/story/brent-hits-110-as-hormuz-ship-attacks-houthi-strikes-on-saudi-trigger-oil-rally-562207-2026-10-17).