Brent crude climbs above $114 amid Middle East tensions

Global oil prices surged on Friday, with Brent crude reaching its highest level in more than five months as escalating

Global oil prices surged on Friday, with Brent crude reaching its highest level in more than five months as escalating hostilities involving Yemen’s Houthis and Saudi Arabia raised fears of further disruptions to energy supplies from the Middle East.

Brent crude futures rose by $1.14, or one per cent, to $114.31 a barrel by 1006 GMT, after touching $114.72 earlier in the session. This marked the benchmark’s highest level since May 4.

US West Texas Intermediate (WTI) crude also gained $1.65, or 1.7 per cent, to trade at $101.12 a barrel.

Brent was heading towards a third consecutive weekly gain of around four per cent. WTI, however, was on course to end the week approximately 0.3 per cent lower.

Market concerns intensified after Yemen-based Houthi forces launched attacks in Saudi Arabia, raising fears that the conflict could threaten oil production, transportation and exports across the region.

Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday as fighting escalated between Saudi Arabia, the world’s largest crude exporter, and the Iran-aligned Houthis, according to reports.

UBS analyst Giovanni Staunovo said markets remained concerned that further escalation could trigger renewed disruptions to supplies. He added that volatile oil flows and higher freight rates had contributed to a tighter global oil market.

Analysts said the duration and scale of any disruption would be crucial in determining the future direction of prices. Continued attacks and delays in deliveries could sustain the current upward pressure on crude oil.

The conflict has also raised concerns about shipping routes in the region, particularly the Bab el-Mandeb Strait, a strategic maritime chokepoint connecting the Red Sea with the Gulf of Aden. Disruptions along this route could affect the movement of energy shipments and increase transportation costs.

Meanwhile, the United Arab Emirates reported an oil spill from a tanker off the coast of Umm Al Quwain. The UAE Ministry of Climate Change and Environment said containment operations and environmental assessments were under way. Authorities did not immediately disclose the cause of the spill or identify the vessel involved.

In Libya, a pipeline valve transporting oil from the Hamada and Tahara fields to Zawiya port was shut, reducing production at both fields, the head of the country’s National Oil Corporation told Reuters on Thursday.

Developments in the global diesel market also drew attention as a Malta-flagged tanker carrying 40,000 metric tonnes of Russian diesel headed towards New York, according to LSEG shipping data.

Russia had agreed to lift its self-imposed restrictions on diesel exports and supply international markets, including the United States, following an agreement between US President Donald Trump and Russian President Vladimir Putin aimed at easing fuel prices.