Fire at Saudi terminals and Russian refineries propel oil prices

Missile interceptions over Saudi oil centres

The energy facilities on the Arabian peninsula are facing an intensification of military operations. Financial Times reported that Saudi-led forces intercepted and destroyed missiles directed to major energy centres. According to a military spokesman quoted by CNBC, the Saudi Kingdom neutralized on Friday several missiles fired over the Red Sea, one of which was heading directly to the Yanbu oil export terminal. The army also reported that it had destroyed three drones in the Riyadh region and in southern areas of the country.

These actions follow a series of offensives carried out throughout the week by Yemen's Houthis militants, Iran's allies, CNBC explains. The Saudi Ministry of Energy reported that an Aramco Group administrative building in Dhahran had been hit on Tuesday. Previously, on 10 October 2026, the Houthis attacked Riyadh International Airport, killing 12 people and injuring more than 300 individuals, according to CNBC reports.

Breaking the energy truce between Ukraine and Russia

In Eastern Europe, the risks to the refining tool are also increasing. According to CNBC, the energy truce that President Donald Trump had tried to negotiate between Ukraine and Russia quickly broke out. Despite this supposed agreement, the Kremlin continued its attacks on Ukrainian infrastructure. In response, President Volodymyr Zelenskyy warned that Kyiv would resume its attacks on Russian oil refineries.

This prospect of new strikes on processing units feeds tensions on the supply of refined fuels. CNBC points out that diesel prices have risen sharply this year as a result of repeated Ukrainian attacks on Russian refineries, along with Iranian strikes on energy infrastructure in the Middle East. According to AAA data, the average price of diesel in the United States was $6.33 per gallon, an increase of over 70% over the same period of the previous year.

Fire from barrel classes in New York and London

The combined tensions in the Middle East and Eastern Europe immediately led to a sharp rise in oil market prices over the weekend. The Financial Times noted that Brent's barrel reached a five-month high above $110, backed by threats to energy infrastructure. According to CNBC, the Brent futures contract received $110 in session for the first time since May, before ending the day at $109.86, with a daily increase of 3.7%. According to Yahoo Finance's market data, Brent's barrel finished the session on October 16, 2026 at exactly $109.86, up 3.72%.

In the United States, West Texas Intermediate finished at $101.41 per barrel, down 3.5 per cent on the session, according to CNBC. Over the week as a whole, WTI grew by more than 10%, while Brent grew by almost 5%.

Fall in U.S. reserves after Hurricane Isaias

Beyond geopolitical factors, US crude prices have benefited from a tightening of domestic stocks. The U.S. Energy Information Agency revealed that U.S. commercial crude oil stocks fell by more than 8 million barrels in the week ended October 9, 2026.

The Energy Information Administration attributed this sharp decline to the temporary closures of oil production sites along the coast of the Gulf of Mexico caused by Hurricane Isaias.

Persistent tensions on regional maritime transit

This supply situation is part of an overall climate of disruption of regional energy flows. According to information reported by CNBC, at least nine oil tankers and cargo vessels have been attacked since Sunday in the Strait of Ormuz, an area where Iran is trying to curb oil shipments. The U.S. Central Command reported that Iranian forces sank on Wednesday the GFS Pride container carrier, whose crew members could be safely evacuated, according to the Singapore maritime authority. The International Maritime Organization counted three sailors injured and two missing during the week.

According to Kpler's analysis firm data cited by CNBC, the volume of crude oil exported by this route was 9.4 million barrels per day for the week ended Wednesday, which is about 70% of the average before the conflict with Iran began.