Brent hits $110 as Hormuz ship attacks, Houthi strikes on Saudi trigger oil rally
The combination of targeted refinery attacks in Russia, active missile strikes targeting Saudi infrastructure, and maritime blockades in the Strait of Hormuz left international markets facing simultaneous supply disruptions across both crude extraction and export logistics.
- Oct 17, 2026,
- Updated Oct 17, 2026 6:48 AM IST
Global crude oil prices rallied sharply on October 16, driven by an escalating cycle of geopolitical conflicts spanning the Middle East and Eastern Europe that heightened fears of severe global supply shortages.
Brent futures hit a session high of $110 per barrel for the first time since May before easing slightly to close at $109.86, marking a gain of 3.7%. US West Texas Intermediate (WTI) rose 3.5% to settle at $101.41 per barrel. For the week, WTI added more than 10%, while Brent advanced nearly 5%.
The sharp upward movement was fueled by a convergence of major security threats across critical energy corridors. In the Middle East, Iran escalated attacks in the Strait of Hormuz, severely disrupting commercial shipping and petroleum transit through the vital maritime chokepoint.
Compounding regional pressures, Houthi militants fired missiles at Saudi Arabia, raising alarms over the security of major regional production and export infrastructure.
Simultaneously, the conflict in Eastern Europe added heavy upward momentum to energy markets as Ukraine vowed to keep striking Russian refineries. The combination of targeted refinery attacks in Russia, active missile strikes targeting Saudi infrastructure, and maritime blockades in the Strait of Hormuz left international markets facing simultaneous supply disruptions across both crude extraction and export logistics.
Energy analysts note that the return of triple-digit crude prices will likely place immediate upward pressure on global inflation, impacting retail fuel costs, manufacturing overhead, and transportation expenditures worldwide as markets brace for prolonged volatility.
Global crude oil prices rallied sharply on October 16, driven by an escalating cycle of geopolitical conflicts spanning the Middle East and Eastern Europe that heightened fears of severe global supply shortages.
Brent futures hit a session high of $110 per barrel for the first time since May before easing slightly to close at $109.86, marking a gain of 3.7%. US West Texas Intermediate (WTI) rose 3.5% to settle at $101.41 per barrel. For the week, WTI added more than 10%, while Brent advanced nearly 5%.
The sharp upward movement was fueled by a convergence of major security threats across critical energy corridors. In the Middle East, Iran escalated attacks in the Strait of Hormuz, severely disrupting commercial shipping and petroleum transit through the vital maritime chokepoint.
Compounding regional pressures, Houthi militants fired missiles at Saudi Arabia, raising alarms over the security of major regional production and export infrastructure.
Simultaneously, the conflict in Eastern Europe added heavy upward momentum to energy markets as Ukraine vowed to keep striking Russian refineries. The combination of targeted refinery attacks in Russia, active missile strikes targeting Saudi infrastructure, and maritime blockades in the Strait of Hormuz left international markets facing simultaneous supply disruptions across both crude extraction and export logistics.
Energy analysts note that the return of triple-digit crude prices will likely place immediate upward pressure on global inflation, impacting retail fuel costs, manufacturing overhead, and transportation expenditures worldwide as markets brace for prolonged volatility.