Oil prices hit $110 as Hormuz attacks and refinery strikes intensify

Oct 17, 6:18 AM2 min readCovered by 3 outlets

Drafted by AI from the sources below, fact-checked by the Ajako Taja Editorial Team · How we use AI

AI Summary

Brent crude futures hit $110 as Houthi missile strikes on Saudi Arabia and Iranian naval activity in the Strait of Hormuz spark fears of global energy shortages.

Global oil prices reached a five-month high of nearly $110 per barrel on Friday as investors reacted to escalating conflict in the Strait of Hormuz and Ukrainian strikes on Russian refineries.

Brent crude futures climbed 3.7% to settle at $109.86 per barrel after touching the $110 mark for the first time since May. U.S. West Texas Intermediate (WTI) rose 3.5% to close at $101.41 per barrel. NBC News Top Stories reported that this was the first time WTI surpassed the $100 threshold since September, contributing to a week where the U.S. benchmark advanced more than 10%.

The International reported that Saudi Arabia intercepted several missiles on Friday, including one aimed at the Yanbu oil export terminal. Iran-allied Houthi militants in Yemen also launched three drones toward Riyadh and southern regions. This followed an attack on Tuesday where a Saudi Aramco administrative building in Dhahran was hit, according to the kingdom's energy ministry. Earlier this month, a Houthi strike on Riyadh’s international airport resulted in 12 deaths.

Maritime tension has worsened in the Strait of Hormuz, where at least nine ships have been attacked since Sunday. U.S. Central Command stated that Iran sank a Singapore-registered container ship, the GFS Pride, on Wednesday. Energy researcher Kpler reported that crude exports through the waterway have dropped to 9.4 million barrels per day, which is roughly 70% of the average volume recorded before the Iran war.

The surge in prices is also linked to the collapse of a proposed "energy ceasefire" between Russia and Ukraine. NBC News Top Stories noted that a Russian refinery in Ryazan was forced to suspend some operations after a massive Ukrainian attack on Friday. President Volodymyr Zelenskyy has stated that Kyiv will continue targeting Russian infrastructure in retaliation for Kremlin strikes on Ukrainian energy assets.

Background

Global fuel prices began rising this spring following a February incident where the U.S. and Israel attacked Iran, which triggered the closure of the Strait of Hormuz. In September, the Federal Reserve increased interest rates by 0.25% to address inflation caused by these rising energy costs.