Brent crude, the global oil benchmark, rose about 3.5% on Friday and passed $117 a barrel at one point. That was its highest level since April. The US Energy Department approved an emergency loan of up to 400,000 barrels from its strategic reserve to a Louisiana refinery. The reserve is at its lowest since 1982.
Why it matters: Higher crude prices feed into fuel, airfares and shipping costs, and airlines report fewer passengers as fares rise.
Brent crude rose about 3.5% on Friday to pass $117 a barrel at one point, its highest since April, after Tehran threatened retaliation against Gulf refineries and data centers if attacked. Physical Middle East crude grades softened as oil continued flowing through ship-to-ship transfers off Oman. The US Commodity Futures Trading Commission said it had looked into a large burst of oil futures selling in March shortly before Trump backed away from threats to strike Iranian power plants.
Why it matters: Higher crude prices feed into fuel, transport and airfare costs for consumers and businesses worldwide.
Brent crude rose above $113 a barrel on Thursday, a five-month high, after tanker attacks near Hormuz, Houthi strikes in Saudi Arabia and reports of possible US action against Iran. Citi, which three months ago forecast $60 to $65 Brent by year-end, now sees more upside risk, citing difficulties getting crude out of the Gulf. Kpler data reported by the Wall Street Journal show Iranian oil in floating storage has been drained under the US blockade.
Why it matters: Higher crude prices feed into fuel, transport and heating costs for households and businesses worldwide.
Iraq's oil minister said exports have averaged more than 3.4 million barrels per day in October, up about 750,000 from September and close to levels before the Iran war choked Hormuz traffic.
Why it matters: Recovering Iraqi supply is one factor helping to cap oil prices.