Oil Surges to Highest Level of $110 per Barrel

Brent crude touched $110 a barrel for the first time since May, supported by fears that escalating tensions in the Middle East would further strain supplies. Brent futures settled at $109.86 a barrel, up $3.94 or 3.7%, marking the highest settlement level since May 19. Concerns about supplies intensified as attacks near the Strait of Hormuz increased over the past ten days, with Iran stating it was ramping up strikes in response to the US blockade of its ports and stricter sanctions imposed last month. The US Department of Energy said the United States also issued a request for proposals to swap up to 17 million barrels of crude oil from the US Strategic Petroleum Reserve.

Christina Georgieva, Managing Director of the International Monetary Fund, announced a 2% downward revision to economic growth forecasts for the Middle East and North Africa region, noting that this year’s annual meetings with global policymakers were marked by both optimism and concern over global economic prospects as the events concluded in Bangkok. Georgieva explained that the adjustment in growth projections reflects the direct repercussions of regional unrest, emphasizing that the Fund has a responsibility to assist low-income countries suffering from sharp price shocks stemming from the US-Israeli war on Iran, according to Agence France-Presse.

US President Donald Trump issued an exemption from sanctions and key tariffs related to Russia just days before they were set to take effect under a law signed last month, including duties on the country’s goods and sanctions on purchases of its oil and gas. In an executive order issued by the White House, Trump stated that the exemption serves the national interests of the United States.