Brent Nears US$110; Tanker Attack Sparks Global Supply Concerns!

Global oil prices strengthened again during trading on Wednesday (October 21, 2026), driven by growing concerns over energy supply disruptions stemming from the conflict in the Middle East. Brent crude rose 0.78%—or 85 cents—to US$109.64 per barrel, while West Texas Intermediate (WTI) climbed 0.78% to US$98.58 per barrel. This uptick comes as investors refocus on security threats to maritime shipping in the Red Sea and the risk of attacks on Saudi Arabian oil facilities.

Tensions escalated following reports that a large tanker caught fire after striking a naval mine south of the Strait of Hormuz. Iran’s Revolutionary Guard claimed the vessel had violated maritime regulations established by Tehran. At least 18 attacks on ships have been reported in the region over the past two weeks. Meanwhile, the Houthi group has claimed responsibility for strikes on Saudi Aramco facilities in Yanbu, the Shaybah oil field, and several airports in Saudi Arabia. This series of incidents has heightened fears regarding the smooth flow of global oil shipments.

Despite the deteriorating security situation, oil prices had briefly softened in the previous session amid hopes for a diplomatic resolution to the conflict. The President of Iran reportedly discussed mediation efforts with Pakistan’s military chief in Tehran. Brent had previously fallen 0.69% to close at US$108.79 per barrel, having earlier touched a five-month high of US$111.99. However, Iranian Foreign Minister Abbas Araqchi stated that Tehran has yet to receive a response from either Saudi Arabia or the Houthi group regarding an offer to facilitate peace negotiations.

On the supply side, the market is also closely monitoring the state of oil inventories in the United States. A survey of analysts estimates that U.S. crude oil inventories fell by approximately 800,000 barrels for the week ending October 16. Meanwhile, the U.S. government is reportedly working with oil refineries in various countries to boost fuel production—particularly diesel, which is currently in short supply. This situation indicates that the pressure on the energy market stems not only from geopolitical conflicts but also from the tight availability of refined fuel products.

Looking ahead, Brent crude prices could once again test the US$110–US$112 per barrel range if attacks on oil tankers and energy infrastructure continue to escalate. Conversely, progress in peace negotiations or improvements in oil distribution could curb further price increases. A sustained rise in oil prices also threatens to drive up transportation and production costs, thereby intensifying global inflationary pressures and influencing central bank interest rate policies. With the threat of shipping disruptions spreading, the market is now questioning whether Brent will break through the US$112 mark or retreat if diplomatic efforts begin to yield results.