▲ Strait of Hormuz
International oil prices surged as simultaneous geopolitical risks escalated in the Middle East, Ukraine, and other regions.
On the 16th local time, Brent crude for December delivery settled at $109.86 a barrel on the London ICE Futures Exchange, up 3.72% from the previous session.
This marks the highest closing price since May 19, with prices briefly topping $110 during intraday trading.
At the New York Mercantile Exchange, West Texas Intermediate (WTI) for November delivery closed up 3.51% at $101.41 a barrel.
WTI rose for the seventh consecutive session, reaching its highest level since September 17.
The sharp rise in oil prices on this day was driven by negative developments on the Middle East and Ukraine fronts that stoked concerns over crude supply disruptions.
As Iran moved to control crude exports through the Strait of Hormuz, at least nine vessels have been attacked since the 11th.
According to shipping intelligence firm Kpler, exports through the Strait of Hormuz plummeted to 9.4 million barrels per day between the 8th and 14th.
This is about 70% of the average level seen before the US-Iran war.
In addition, Yemen's Iran-backed Houthi rebels are continuing their attacks targeting Saudi Arabia.
On this day, the Houthis also continued their attacks toward Yanbu, a key port city in western Saudi Arabia densely populated with petrochemical facilities.
Attacks and defenses targeting energy facilities between Russia and Ukraine are also intensifying.
As Russia recently launched intensive airstrikes on major energy facilities such as a combined heat and power plant in Kyiv, Ukraine concluded that the "energy truce" led by US President Donald Trump lacked effectiveness and resumed strikes on Russian oil refineries.
Furthermore, as Hurricane Isaias disrupted crude production in the US Gulf Coast, commercial crude inventories in the United States dropped sharply by more than 8 million barrels.
(Photo: Getty Images)
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