Brent Crude Touches $110 as Iran Attacks Nine Ships in Strait of Hormuz, Sinking Container Vessel

Oil markets posted their sharpest weekly gain in months after Iran dramatically escalated attacks on commercial shipping in the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world's seaborne oil transits. According to the International Maritime Organization, at least nine tankers and cargo ships were struck during the week of October 13–17. The gravest incident came when US Central Command confirmed that an Iranian projectile struck the Singapore-flagged container ship GFS Pride while it was being towed to safety; the vessel subsequently sank. Singapore's maritime authority confirmed the crew had been safely evacuated. Three other seafarers were injured across the week's incidents and two remained missing. The supply-risk premium drove Brent crude futures to a session high of $110 per barrel on Friday October 16 — the highest price since May — before they closed at $109.86, a daily gain of 3.7%. US West Texas Intermediate settled 3.5% higher at $101.41 per barrel, taking its weekly gain to more than 10%. Ukraine's simultaneous vow to continue striking Russian oil refineries added further upward pressure on crude prices. The escalating disruption to one of the world's most critical chokepoints rekindled global inflation fears and compounded the concurrent sell-off in equity markets.