Brent crude hits five-month high
Brent crude oil reached its highest level in five months amid Iranian threats to energy shipments through the Strait of Hormuz and ongoing disruptions to global fuel supplies.
Approaching $111 per barrel on Tuesday, October 20, Brent has gained more than 80% since the beginning of the year, driven by conflicts in the Middle East and Ukraine. Statements by Iran's First Vice President Mohammad Reza Aref suggesting that the country could tighten its control over the Strait of Hormuz renewed concerns about energy supplies.
US Energy Secretary Chris Wright said oil shipments from the Persian Gulf had recovered to approximately 80% of pre-war levels. However, despite the recovery in crude oil flows, shortages of refined petroleum products persist. European diesel futures have more than doubled since the beginning of the year, while prices rose as much as 2.7% following objections from the US Congress to the diesel supply agreement with Russia. Analysts believe that limited inventories and geopolitical risks could continue to put upward pressure on energy prices.
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