Oil climbs above $110 as Middle East tensions keep markets on edge
Brent crude hovered around $110 a barrel while traders priced in the risk of further Iranian attacks in the Strait of Hormuz, despite solid Persian Gulf flows.
Brent crude futures traded close to $110 a barrel on Tuesday, maintaining a five-month high as investors assess the threat of additional Iranian strikes in the Strait of Hormuz. ING's commodity analysts noted that robust crude flows from the Persian Gulf have not eliminated a sizable risk premium, which is further amplified by record-high tanker freight rates. The United States is considering permitting sanctioned tankers to re-enter the market to increase shipping capacity, but officials said the timing and scale of any relief are unclear.
US Energy Secretary Chris Wright reported that Gulf crude flows have recovered to roughly 80% of pre-war levels, while refined product supplies remain tighter. In Asia, LNG spot prices rose to $30.4 per MMBtu, the highest since late 2022, after a Yemeni incident involving an LNG tanker heightened regional shipping worries.
Why it matters
Higher oil and gas prices affect global inflation, consumer costs and corporate earnings worldwide.
How this story developed
- Sep 15 UK fuel prices hit four-year highs as oil market turmoil continues
- Sep 26 President Donald Trump announced new fuel-economy rules that scrap the electric-vehicle mandate introduced under Joe Biden.
- Sep 28 The 2031 fuel‑economy target was lowered to roughly 34.9 mpg.
- Sep 30 Diesel prices have risen to a record level, with a full tank now costing about £110.
- Oct 5 G7 nations agreed to tap emergency reserves after the United States signaled it would not impose a diesel export ban.
- Oct 14 President Trump took steps to release diesel stocks and negotiate with Russia.
- Oct 17 Spain extended its 20‑cent‑per‑litre fuel subsidy beyond the planned November 1 expiry.
In this story
Related stories
22 in this thread