Brent crude touches $110 as shipping attacks fuel supply fears

Brent crude futures touched $110 a barrel on Friday, October 16, their first visit to that level since May, as reported attacks on Middle Eastern shipping and threats of renewed strikes on Russian refineries heightened supply fears. Economic Times Markets reported that Brent subsequently settled at $109.86, up 3.7%, while US West Texas Intermediate rose 3.5% to $101.41.

The gains capped a strong week for both benchmarks: WTI advanced more than 10%, while Brent gained nearly 5%. The rally reflected concern about further disruption to exports and refining, rather than a quantified loss of oil supply established in the report.

Shipping and Saudi export infrastructure under threat

The report said Saudi Arabia intercepted several missiles over the Red Sea on Friday, including one heading towards Yanbu, an important oil export terminal. It also reported the destruction of three drones over Riyadh and southern parts of the kingdom, amid repeated attacks by Iran-backed Houthi militants in Yemen.

Earlier attacks described in the account included a strike on an Aramco administrative building in Dhahran on Tuesday. The report also attributed an October 10 attack on Riyadh’s international airport to the Houthis, saying it killed 12 people and injured more than 300.

In the Strait of Hormuz, at least nine tankers and cargo vessels had been attacked since Sunday, according to CNBC reporting cited in the account. The attacks intensified concern about the security of a major route for oil shipments.

US Central Command said Iran sank the Singapore-registered container ship GFS Pride on Wednesday. Singapore’s maritime authority said its crew had been evacuated safely. Separately, the International Maritime Organization said attacks during the week had injured three seafarers and left two missing.

Russian refinery risks add pressure

The account described the breakdown of an effort by US President Donald Trump to broker an energy ceasefire between Russia and Ukraine. It said Moscow continued attacking Ukrainian infrastructure despite the proposed truce, and Ukrainian President Volodymyr Zelenskyy pledged to resume strikes on Russian refineries in retaliation.

Refined fuels were also becoming more expensive. The report put average US diesel prices on Friday at $6.33 a gallon, more than 70% above their year-earlier level, against a backdrop of attacks on Russian refineries and Middle Eastern energy infrastructure.

Goldman outlines $120 risk—and an $80 easing scenario

Goldman Sachs outlined a scenario in which oil could reach $120 a barrel if attacks on vessels in the Middle East escalate. A restoration of normal export volumes could instead pull prices towards $80. Those figures represent conditional scenarios, not assured outcomes.

Daan Struyven, the bank’s co-head of global commodities research, said the attacks illustrated how shipping disruptions could broaden and intensify. The bank also expected upward pressure on natural gas and refined fuel prices, judging those markets more sensitive to supply shocks than crude itself.

JPMorgan analysts cautioned that the conflict’s course remained difficult to model. They said several economic thresholds they had initially expected the US administration to avoid had already been crossed seven months into the conflict, while an exit strategy remained unclear.