Crude oil prices strengthened again during trading on Wednesday (October 21, 2026), amid growing concerns over potential energy supply disruptions from the Middle East. Market participants are once again factoring in geopolitical risks as threats to shipping lanes and energy infrastructure in the region intensify. This has led to a risk premium being priced back into oil.
Brent crude futures rose by 85 cents, or 0.78%, to US$109.64 per barrel, while West Texas Intermediate (WTI) crude climbed 76 cents, or 0.78%, to US$98.58 per barrel. This gain followed a brief surge in Brent to a five-month high of US$111.99 per barrel before a subsequent correction.
Market anxiety stems primarily from heightened risks to shipping operations and energy facilities in the Middle East. A supertanker reportedly caught fire after striking a naval mine south of the Strait of Hormuz. Meanwhile, attacks on vessels have reportedly spread beyond the Strait of Hormuz, reaching areas such as the Gulf of Oman.
Further pressure on supply has emerged following claims by the Houthi group of responsibility for attacks on several Saudi Aramco facilities, the Shaybah oil field, and various sites in Riyadh and Abha. These developments have fueled fears that a prolonged conflict could disrupt energy distribution networks and production in a region critical to the global oil supply.
Separately, the market is also monitoring oil inventories in the United States. U.S. crude oil stocks are estimated to have fallen by approximately 800,000 barrels for the week ending October 16. The combination of potential supply disruptions, escalating geopolitical risks, and declining inventories has provided renewed upward momentum for oil prices. With Brent once again approaching US$110 per barrel, developments in the Middle East conflict and the security of shipping lanes have become key factors in determining the future direction of oil prices.(CP)