Global oil prices surged as Brent crude reached $110 a barrel for the first time since May, driven by mounting concerns over supply disruptions and escalating geopolitical tensions.
The international benchmark gained 3.7% during the trading session as investors increased their bets on higher prices ahead of the weekend.
Continued hostilities in the Middle East and attacks on energy infrastructure involving Russia and Ukraine have raised doubts about near-term supply relief.
Crude prices have climbed more than 70% this year, reflecting persistent disruptions across major oil-producing and exporting regions.
Geopolitical Uncertainty Push Oil Higher
Iran-backed Houthi rebels have continued missile and drone attacks targeting Saudi Arabia, adding to concerns over energy supplies from the region.
Meanwhile, Russia and Ukraine have intensified attacks on each other's energy infrastructure.
A recent strike on Russia's Ryazan oil refinery reportedly forced operations to stop, according to Reuters. The developments have complicated efforts to ease shortages in global fuel markets.
US lawmakers introduced legislation on Friday seeking to block President Donald Trump's proposed agreement with Moscow to release several hundred million barrels of diesel.
Opponents argue that allowing Russian fuel supplies back into international markets could strengthen Moscow's finances.
Trump, however, maintained that Russia would proceed with the proposed release. If Russian diesel remains unavailable, refineries elsewhere may need to increase crude processing to meet fuel demand.
European diesel futures have more than doubled this year, highlighting tightness in refined fuel markets.
Analysts Warn Of Further Escalation In Persian Gulf
Market participants are closely monitoring developments around the Persian Gulf amid concerns that regional hostilities could intensify.
Trump reportedly declined to rule out using the GBU-43/B Massive Ordnance Air Blast bomb, commonly called the Mother of All Bombs, against Iran after the Nov 3 election.
CNN separately reported that US military planning included potential strikes involving the high-yield weapon.
Eurasia Group analysts increased their estimated probability of conflict escalation to 65%, compared with an earlier assessment of 35%.
The consultancy warned that the existing confrontation might become increasingly difficult to sustain.
With geopolitical risks elevated and fuel markets already under pressure, traders remain focused on potential supply interruptions and further oil price volatility.
