Crude oil prices rose sharply Friday as Iran escalated its attacks in the Strait of Hormuz and Ukraine vowed to keep striking Russian refineries.
U.S. West Texas Intermediate futures rose 2.9% to $100.78 per barrel. Brent crude, the international benchmark, was up 3.3% at $109.37. WTI has added more than 9% this week while Brent has advanced more than 4%.
At least nine tankers and cargo ships have come under attack near Hormuz since Sunday as Iran tries to choke off oil exports through the strait. Iran sank the container ship GFS Pride on Wednesday, according to U.S. Central Command. The crew of the Singapore-registered ship was safely evacuated.
The ship attacks have left three sailors injured and two missing this week, according to the International Maritime Organization.
Crude exports through Hormuz have pulled back after touching prewar levels in September. Shipments stood at 9.4 million barrels per day for the week ended Wednesday, about 70% of the average before the Iran war, according to data provided by the firm Kpler.
The “energy ceasefire” that President Donald Trump tried to declare between Ukraine and Russia has quickly unraveled. The Kremlin continued attacking Ukrainian infrastructure despite the supposed truce. President Volodymyr Zelenskyy said Kyiv would resume strikes on Russian refineries in retaliation.
Diesel prices have surged this year due to Ukraine’s attacks on Russian refineries and Iranian strikes on energy infrastructure in the Middle East. The fuel cost $6.33 per gallon in the U.S. on average Friday, a more than 70% increase compared to the same period last year, according to AAA data.
U.S. crude oil prices were also driven higher by a big decline in commercial inventories of more than 8 million barrels for the week ended Oct. 9 due to production shut-ins on the Gulf Coast from Hurricane Isaias, according to the Energy Information Administration.