Global oil prices climbed sharply on Friday, with Brent crude reaching its highest level since May as renewed concerns over Middle East tensions and uncertainty surrounding Russian fuel supplies unsettled energy markets.
Brent crude futures settled at $109.86 per barrel, gaining $3.94, or 3.7%, during the session. US West Texas Intermediate (WTI) crude futures rose $3.44, or 3.5%, to close at $101.41 per barrel.
The latest gains extended a strong weekly rally. Brent advanced 4.9% over the week, while WTI climbed 10.4%, reflecting growing concerns about the availability of oil and refined fuels in international markets.
Traders responded to reports of potential threats to energy infrastructure in the Middle East, disruptions around the strategically important Strait of Hormuz and questions about how much diesel Russia could deliver to global buyers.
The developments have reinforced concerns that supply disruptions could persist even as governments explore measures to increase the availability of fuel.
Middle East Tensions Put Pressure on Global Oil Supplies
Fresh concerns over the security of energy infrastructure in the Middle East helped push crude prices higher.
Energy research firm Energy Aspects said oil prices had recovered from earlier losses amid renewed fears of escalation, including reports of possible attacks on Saudi energy infrastructure.
The firm also referred to reports suggesting Iran could be preparing a pre-emptive strike following unusual military movements detected by Western intelligence. These reports were unverified, but they added to uncertainty surrounding the regional security situation.
Separately, a Saudi-led coalition said it had intercepted and destroyed a ballistic missile launched towards Yanbu, a Red Sea port that plays an important role in Saudi Arabia's oil export strategy.
Yanbu is particularly significant because it offers Saudi Arabia an alternative route for moving crude to international markets without relying entirely on shipments through the Strait of Hormuz.
Initial reports indicated that the incident had not damaged Yanbu's infrastructure, according to energy consultancy Rapidan Energy Group.
Nevertheless, the possibility of further attacks on oil facilities and export routes has kept traders alert to the risk of additional supply disruptions.
Strait of Hormuz Disruptions Raise Supply Concerns
The Strait of Hormuz remains a major focus for oil traders because of its importance to international energy shipments.
The narrow waterway connects the Persian Gulf with the Gulf of Oman and the wider global shipping network. A prolonged disruption can restrict the movement of crude oil and refined petroleum products from major producing countries to overseas buyers.
Reports of increased attacks in and around the strait over the preceding 10 days added to market concerns. Iran said it was intensifying strikes in response to a US blockade of its ports and tougher sanctions introduced in the previous month.
According to analysts at commodity intelligence firm Kpler, intensified Iranian attacks had significantly reduced crude flows from the Gulf region.
The analysts also warned that a recovery in shipping activity through the strait could be slow and uneven without a comprehensive political agreement.
For oil markets, the uncertainty is not limited to the immediate volume of disrupted shipments. Traders must also assess how long disruptions might continue, whether alternative export routes can compensate and how much emergency supply can be brought to market.
These concerns can increase prices even before the full extent of any supply shortage becomes clear.
Russian Refinery Attack Adds to Diesel Supply Uncertainty
Developments in Russia have added another layer of uncertainty to the global energy outlook.
Ukraine struck a Russian oil refinery on Thursday after President Volodymyr Zelenskyy said Kyiv was abandoning a ceasefire covering energy facilities that had been announced by US President Donald Trump.
The attack reportedly affected operations at Russia's Ryazan refinery. Two industry sources told Reuters that the facility had suspended operations at a primary crude distillation unit following a drone attack in the region.
The incident raised further questions about the availability of Russian refined products, particularly diesel.
Dennis Kissler, senior vice-president of trading at BOK Financial, said uncertainty surrounding the Middle East and the volume of Russian diesel reaching international markets was encouraging traders to continue buying oil.
The issue is important because crude oil and diesel are not interchangeable in every part of the supply chain. Refinery disruptions can limit the availability of finished fuels even when crude remains accessible.
As a result, uncertainty over Russian refinery operations has added to concerns about fuel supply and market volatility.
IEA Plans Additional Fuel Release to Support Supply
Governments and energy agencies are considering measures to increase the availability of petroleum products and limit the effects of supply disruptions.
The International Energy Agency (IEA) agreed on Thursday to accelerate the release of more than 20 million barrels of fuel into the market, according to the supplied report. The release includes diesel supplies intended to help address tightness in refined fuel markets.
The United States has also taken steps involving its Strategic Petroleum Reserve (SPR), the country's emergency stockpile of crude oil.
The US Department of Energy issued a request for proposals on Friday for an exchange involving up to 17 million barrels of crude from the reserve.
Under an exchange arrangement, companies receive oil from the reserve and are generally required to return the oil later, often with additional volumes, under the applicable terms. Such arrangements can provide short-term supply without necessarily representing a permanent reduction in the reserve.
Washington had previously agreed to loan 172 million barrels from the SPR as part of a wider international effort involving around 30 countries. The broader IEA-coordinated initiative was intended to release approximately 400 million barrels from emergency reserves worldwide.
These measures could help ease immediate supply pressures, although their effectiveness will depend on delivery schedules, the type of fuel released and the scale and duration of disruptions.
Why Oil Traders Are Watching Supply Measures Closely
The recent price rally reflects a combination of geopolitical risks and uncertainty over how quickly additional supplies can reach consumers.
Emergency reserve releases can help bridge temporary shortages, but they cannot necessarily offset a prolonged disruption to major export routes or sustained damage to energy infrastructure.
Similarly, expectations that restrictions on certain oil tankers could be eased may affect the volume of crude available to international buyers. However, any change in policy must be assessed alongside the practical challenges of shipping, insurance, sanctions compliance and refinery demand.
US crude inventory movements have also influenced market sentiment. In the previous session, WTI gained more than 3% following reports of a significant draw in US crude stocks, alongside developments concerning potential changes to restrictions affecting the so-called shadow fleet of oil tankers.
Together, these factors have left traders weighing the possibility of tighter supplies against government efforts to release additional fuel and crude into the market.
What Higher Oil Prices Could Mean for the Global Economy
A sustained increase in crude prices can raise costs across the wider economy. Higher oil prices can feed into transport expenses, aviation fuel, industrial production and the cost of moving goods.
Countries that depend heavily on imported crude may face higher import bills, while fuel-consuming businesses could experience pressure on operating margins. If elevated energy costs persist, they can also contribute to inflation and complicate central banks' efforts to manage price pressures.
The effect on individual countries will depend on factors such as currency movements, domestic fuel pricing policies, taxes, subsidies and the availability of alternative energy sources.
For oil-producing countries, higher prices may support export revenues, but the overall economic impact can still depend on production levels and the cost of maintaining supply.
Oil Market Outlook: Geopolitics Remains the Key Risk
The rise in Brent crude towards $110 per barrel highlights how sensitive energy markets remain to geopolitical developments and concerns about supply security.
Tensions in the Middle East, uncertainty around the Strait of Hormuz and questions about Russian refinery output have combined to support prices. Meanwhile, the planned release of emergency supplies by the IEA and measures involving the US Strategic Petroleum Reserve could provide some relief.
The next direction for oil prices will depend heavily on whether shipping routes remain accessible, whether attacks on energy infrastructure escalate and how quickly additional crude and refined fuels reach global markets.
For now, traders are balancing the prospect of tighter supplies against efforts to prevent a prolonged energy shortage. Until greater clarity emerges, geopolitical developments are likely to remain a major driver of crude oil price movements.
Sources By Agencies