Brent crude surges toward $110 as Hormuz risk premium climbs
Brent crude jumped 3.56% to about $109.69 a barrel and WTI rose nearly 4% as tightening supply and Iran-related tanker risks in the Strait of Hormuz pushed shipping costs sharply higher.
Oil prices surged into Oct. 17 as supply fears collided with heavy shipping demand. Brent crude rose 3.56% to about US$109.69 a barrel and US West Texas Intermediate climbed 3.95% to US$101.84, with Brent now up almost 79% from a year earlier. Traders cited tightening physical supply, strong demand for marine fuel and a sharp jump in freight rates and insurance premiums as owners re-routed around the Strait of Hormuz, where Iranian strikes on tankers have continued. OPEC+ left its October output policy unchanged in early September, pending new quotas, and analysts said the group now has 'very limited power over the physical oil market' while the Iran conflict disrupts flows. On the other side of the ledger, the International Energy Agency pledged to release the remaining 100 million barrels under its March agreement, and reports that Washington is weighing eased sanctions on some dark-fleet tankers helped cap sentiment. The move hit equities too: the oil spike was one driver of a 2% weekly slide in the Nasdaq. The World Trade Organization meanwhile raised its 2026 merchandise-trade growth forecast to 3.9% while cutting its services-trade outlook to 3.3%, citing travel and transport disruption.
