Oil prices rose sharply on Friday as escalating tensions in the Middle East raised concerns about further supply disruptions, while uncertainty remained over how much diesel Russia could deliver to global markets. Brent crude futures settled up $3.94, or 3.7%, at $109.86 a barrel, the highest level since May 19. U.S. West Texas Intermediate (WTI) crude futures rose $3.44, or 3.5%, to $101.41 a barrel, the highest since September 17. For the week, Brent gained 4.9%, while WTI climbed 10.4%.<\/p>\n\n\n\n
Supply concerns intensified following reports of potential attacks on Saudi energy infrastructure and the interception of a ballistic missile headed toward Yanbu, a key Saudi Red Sea port used to bypass the Strait of Hormuz. Attacks around the Strait of Hormuz have increased over the past 10 days, with Iran escalating strikes in response to the U.S. blockade of its ports and tougher sanctions. Analysts warned that crude flows through the region could recover slowly and unevenly without a comprehensive political agreement.<\/p>\n\n\n\n
Additional uncertainty came from disruptions to Russian oil refining after Ukraine attacked the Ryazan refinery, forcing the suspension of operations at a primary crude distillation unit. Concerns about Russia’s ability to supply diesel, combined with continued Middle East tensions, supported buying in oil markets. To help ease supply pressures, the International Energy Agency (IEA) agreed to release more than 20 million barrels of fuel, while the United States announced a request for proposals to exchange up to 17 million barrels of crude oil from the Strategic Petroleum Reserve (SPR).<\/p>\n\n\n\n