US crude rebounds past $100 a barrel, first time in a month

what happened

November West Texas Intermediate futures settled at $101.41 a barrel, gaining 3.5% on the day and more than 10% over the week, according to RTTNews/dpa-AFX and the Wall Street Journal. It was the seventh straight session of gains. Brent climbed to $109.86, its highest level since May 19.

The move reflects renewed fighting around the Strait of Hormuz. Iran has stepped up attacks there, and at least nine commercial vessels were reportedly hit this week. US Central Command said a container ship flying the Singapore flag was struck by an Islamic Revolutionary Guard Corps projectile and sank while under tow. CENTCOM also rejected Iran's claim to control the waterway, pointing to more than 40 ships passing through in the past 24 hours.

Worries that the energy truce between Russia and Ukraine is falling apart added to the pressure. Volodymyr Zelenskyy told the Financial Times that Kyiv will resume strikes on Russian refineries in response to Moscow's attacks on Ukrainian infrastructure. In New York, diesel futures settled just under $4.90 a gallon after the president unveiled an agreement easing curbs on Russian diesel shipments, a move lawmakers have questioned and traders see as having little effect on pump prices ahead of the midterm vote next month.

why it matters

Two risks are in play: possible disruption to shipments through Hormuz and fewer Russian refinery runs if Ukrainian strikes on refineries resume. Both point to firmer crude and diesel prices. According to Dow Jones Energy, US retail diesel averaged $6.3261 a gallon on Friday, about 5 cents above a week earlier.

market impact

Crude and diesel: Hormuz shipping risks and refinery strikes add upward pressure on prices

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