Oil prices will remain a key regional focus on Friday after Brent reached $112.68 a barrel, driven by Houthi attacks in Saudi Arabia, shipping risks around Hormuz and concerns over Gulf supply disruption.
DUBAI: Global oil prices surged to a five-month high as escalating tensions across the Gulf raised concerns about disruptions to energy supplies from the Middle East.
Brent crude futures climbed to $112.68 per barrel on Thursday, October 22, their highest level since May 18. Prices later settled at $113.17, marking a 4% daily increase. US West Texas Intermediate (WTI) crude settled at $99.47 per barrel.
The rally followed renewed Houthi attacks on Saudi Arabia, one of the world’s largest oil exporters. The strikes heightened fears that further escalation could threaten oil facilities and regional shipping routes.
Saudi Aramco reportedly instructed employees to evacuate its headquarters in Dhahran as security concerns intensified.
Strait of Hormuz Faces Growing Risks
The Strait of Hormuz remains a critical shipping corridor for global energy supplies. Attacks on commercial vessels and rising security threats have increased uncertainty over the movement of crude oil from Gulf producers.
Meanwhile, tensions near the Bab el-Mandeb Strait, another major maritime route, have raised concerns about additional shipping disruptions.
Despite these challenges, Middle East crude exports have shown resilience. Morgan Stanley estimated regional exports at approximately 17 million barrels per day last week.
However, traders remain concerned that further attacks could reduce supplies and increase transportation costs.
Impact to Expect
Higher oil prices could increase global fuel, aviation and shipping costs. This may add pressure on inflation and transport-dependent businesses.
For Gulf economies, stronger crude prices could support oil revenues, although prolonged regional instability may disrupt trade and investor confidence.
Market participants will closely monitor developments in Saudi Arabia, the Strait of Hormuz and wider regional security conditions.
On Friday, Brent continued climbing, reaching $114.47 per barrel in Reuters’ latest reported trading update.
Image Caption: Brent crude prices surged above $112 per barrel as escalating Gulf tensions raised concerns over global oil supplies.
Alt Text: Oil tanker navigating Gulf waters as Brent crude prices rise amid Middle East tensions and shipping risks.
