Oil prices rise, Brent tests $110 a barrel as M.East supply risks grow

Investing.com reports that oil prices have surged on Friday, with Brent approaching four-month highs due to ongoing attacks on shipping in the Middle East. Brent oil futures increased by 0.6% to $108.21 per barrel, while West Texas Intermediate crude futures rose by 0.55% to $103.08 per barrel. Brent reached a peak of $109.97, marking its highest level since early-May.

Brent oil futures have risen 12.4% this week, their best gain since early-July, and West Texas Intermediate futures have climbed 12.7%. The escalation began after Iran attacked 10 ships near the Strait of Hormuz, and the United States retaliated by sinking five Iranian tankers. These attacks, marking some of the worst fighting in months, suggest that tensions may not be easing despite it being seven months into the conflict.

Yemen's Iran-backed Houthi group has further intensified concerns over supply disruptions in the Middle East, seizing control of the port city of Mocha and gaining control over the Bab el-Mandeb Strait. The Houthis have reportedly been attacking ships in Bab el-Mandeb and launching strikes on Saudi energy infrastructure. This development has led traders to price in greater risks for crude markets.