Brent crude hits $110 for first time since May; U.S. WTI tops $100

Brent crude oil prices soared to $110 a barrel for the first time since May as supply concerns intensified, prompting traders to increase their bets on higher prices ahead of the weekend. The global benchmark rose 3.7%, marking a second consecutive weekly gain, amid a session filled with reports of ongoing conflict in key export centers.

Iran-backed Houthi rebels continued to carry out missile and drone attacks on Saudi Arabia, while Russia and Ukraine exchanged strikes on energy infrastructure. The last time prices reached such heights was nearly five months ago, when global crude and fuel flows were disrupted, leading to a short-lived agreement that briefly reopened the Strait of Hormuz.

Despite cargo volumes passing the 100 million barrels mark for the first time in weeks, prices remained stubbornly high, leaving President Donald Trump with fewer options to control energy costs before the November midterm elections. US lawmakers introduced a bill on Friday to prevent Trump's deal with Moscow from releasing hundreds of millions of barrels of diesel, reflecting opposition to measures that would benefit Russia.

Diesel and gasoline futures also climbed, settling at $4.90 a gallon in New York. Diesel contracts are trading at their highest-ever seasonal levels. Traders are closely monitoring developments in the Persian Gulf for any signs of escalating conflict, with some analysts expressing concerns that the standoff could worsen. President Trump has not ruled out using a powerful bomb known as the "Mother of all Bombs" against Iran after the election, according to an interview with Newsmax.

The US has already drawn from emergency stockpiles and is lobbying other countries to do the same in an effort to stabilize prices. Crude oil prices have surged more than 75% this year due to disruptions from the Middle East wars and Russia's actions. Physical markets indicate tight supplies, with refined products like diesel experiencing even steeper price increases.

The price gap between futures and physical markets has narrowed, causing concern among traders who are wary of making incorrect predictions.