Brent crude oil futures climbed sharply on Thursday, surging as high as $115.10 — their highest level since March 9 — before settling near a one-week high as fresh attacks on Middle Eastern energy infrastructure reignited supply disruption fears.
By late morning, Brent had risen $6.08, or 5.7%, to trade at $113.46 a barrel, while U.S. West Texas Intermediate crude rose 57 cents, or 0.6%, to $96.89 a barrel, having earlier touched $100.02. By session end, Brent settled up $3.52, or 3.4%, at $106.60 a barrel, marking its highest close since September 15. WTI finished higher for the first time in seven days after sliding roughly 13% over the preceding six sessions.
Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis on Thursday, thwarting attacks aimed at the southern province of Taif and the Red Sea port area of Yanbu, the Saudi-led coalition in Yemen said. Later, Saudi Aramco reported its SAMREF refinery in Yanbu was struck in an aerial attack. Kuwait Petroleum Corporation said a drone hit an operational unit at its Mina al-Ahmadi refinery, igniting a limited fire. QatarEnergy said Iranian missile attacks on Ras Laffan, the site of Qatar's core LNG processing operations, caused "extensive damage" to the energy hub.
Iran launched the assaults in retaliation for an Israeli strike on South Pars, the Iranian sector of the world's largest natural gas deposit that Iran shares with Qatar. President Donald Trump said Wednesday that Israel carried out the South Pars attack but that neither the United States nor Qatar was involved, adding that Israel would not further attack South Pars unless Iran attacked Qatar.
In New York, U.S. and Iranian negotiators discussed a phased path out of the nearly seven-month conflict that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. The strait has become the central bargaining chip in peace efforts. Sources familiar with the talks said neither side wants to surrender its leverage.
Separately, the Federal Reserve held interest rates steady on Wednesday, projecting higher inflation as policymakers assessed the impact of the U.S.-Israel war with Iran. Analysts noted the move added fuel to oil-market volatility.
The Brent-WTI premium widened to its largest gap in 11 years, driven by U.S. strategic reserve releases and higher freight costs. Analysts at Phillip Nova cited the escalation, precise strikes on oil infrastructure, and the death of Iranian leadership as signs of prolonged supply disruption.
U.S. crude exports fell to 3.3 million barrels per day during the week ended September 18, down from a record 6.4 million bpd in April when tanker charter costs were far lower, according to Energy Information Administration data. Meanwhile, Saudi Arabia is increasing crude pumping volumes through its East-West Pipeline toward its Red Sea export hub at Yanbu, though tanker loadings have not yet resumed, industry sources and satellite imagery showed.
Diesel prices reached record highs amid tight global supplies, compounded by Moscow's export ban following Ukrainian attacks on Russian refineries and Iranian strikes on Middle Eastern energy infrastructure. The U.S. reportedly planned a 90-day diesel export ban ahead of November midterm elections, though Energy Secretary Chris Wright disputed the report. EU officials warned the ban could worsen global supplies and harm both sides. U.S. diesel futures rose more than 5% in late morning trade.
The Trump administration also advanced "secondary sanctions" targeting third-country companies doing business with Iran, including a ban on Iranian flights to Gulf neighbors such as the UAE and Oman. Iran threatened to retaliate by making compliant countries' airports "unusable."
