Oil trades near five-month high as Mideast supply risks mount

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesEnergyOil & GasOil trades near five-month high as Mideast supply risks mountBrent is up more than 85% this year because of the U.S.-Iran warAuthor of the article:Kanoko Matsuyama and Alex LongleyAn oil well in a field seen along Highway 22, known as the Cowboy Trail, between Cochrane and Cremona, in Alberta, Canada on May 22, 2025. Photo by Artur Widak/NurPhoto via Getty ImagesBrent oil was trading at the highest level since May as attacks on Saudi Arabia intensified and the war with Iran remained unresolved.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe global benchmark traded around US$114 a barrel on Friday, up almost four per cent this week, while West Texas Intermediate was above US$100. Iran-backed Houthi militants claimed recent attacks on the Saudi Red Sea port of Yanbu, as well as deadly strikes on an oil field and airport in the kingdom.This advertisement has not loaded yet, but your article continues below.The flareup threatens to widen hostilities around the Strait of Hormuz, where crude exports have recovered to near prewar levels.At the White House on Thursday, U.S. President Donald Trump told reporters that the U.S. has “knocked” out Iran and threatened to go “a little bit further,” without elaborating. The New York Times reported this week that the U.S. and Israel have developed plans for renewed strikes against the Islamic Republic after the American midterm elections early next month.Brent is up more than 85 per cent this year because of the U.S.-Iran war, which is now approaching its ninth month. Refined-product prices have risen even faster, most notably diesel. More recently, however, flows through Hormuz have surged, weighing on physical markets even as futures climb.“One of the most frequent questions during our client meetings was why oil prices remain elevated despite the apparent recovery in Arab Gulf exports,” Citigroup analysts including Francesco Martoccia wrote in a note. “We would caution against extrapolating a few days of stronger flows into a full normalization of exports, as temporary increases may reflect inventory drawdowns or the release of previously hoarded barrels.”This advertisement has not loaded yet, but your article continues below.The U.S. is preparing for a protracted conflict with Iran and could still be mired in a stalemate a year from now, Trump’s Ambassador to the United Nations, Mike Waltz, told the Financial Times. The U.S. Navy can maintain its blockade of Iranian ports for the “foreseeable future” and the administration is tightening economic pressure on Tehran, he added.The Yemen-based Houthis have repeatedly attacked Saudi Arabia in recent months. State-owned Aramco evacuated its Dhahran headquarters on Thursday and asked staff to work from home after an alarm, according to people familiar with the matter. The reason for the alarm wasn’t immediately known.While crude flows from the Persian Gulf have recovered, oil-product shipments from the region remain constrained. That squeeze, along with intensifying Ukrainian attacks on Russian refineries, has prompted governments to tap stockpiles. Trump is also pushing measures to lower prices ahead of the midterm elections, including a diesel deal with Moscow.With assistance from Lorelei SmillieThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.