Brent crude hovers near $109 amid Ukraine and Gulf attacks
Brent crude hovered near $109 a barrel on October 18, 2026, as Ukrainian drone strikes hit Russian oil infrastructure and maritime attacks targeted tankers in the Persian Gulf. The international benchmark settled at $108.82 per barrel after dropping $1.04, while U.S. West Texas Intermediate lost 26 cents to settle at $101.15 per barrel.
The market movements followed a volatile week where Brent touched $110 a barrel for the first time since May. Traders weighed converging supply risks across Eastern Europe and the Middle East against international efforts to release emergency fuel reserves and stabilize prices.
Drone Strikes Resume at Russian Terminals
Fires broke out at an oil terminal and depot in St. Petersburg on October 18 after a massive wave of Ukrainian drone strikes, according to St. Petersburg Alexander Beglov. Data from Kpler shows the targeted terminal exports approximately 120,000 barrels per day of refined products, primarily fuel oil. The extent of the structural damage at the facility remains unverified.
This escalation follows the breakdown of a brief pause in energy sector attacks. President Donald Trump announced on October 11 that Kyiv and Moscow had agreed to a truce. However, Russian forces continued targeting Ukrainian energy infrastructure, prompting Ukrainian President Volodymyr Zelenskyy to announce that Kyiv would resume retaliatory strikes on Russian facilities.
Tanker Attacks and Regional Escalation in the Persian Gulf
Simultaneous disruptions in the Middle East added upward pressure on global energy prices. Incident reports from the United Kingdom Maritime Trade Operations Centre noted that two tankers came under attack off the coast of Saudi Arabia in the Persian Gulf. A rocket-propelled grenade was fired from a small craft at an unnamed tanker situated 78 nautical miles northeast of Al Jubayl, whereas an unidentified projectile hit a second vessel known as the ST3.
Iran has intensified attacks in the Persian Gulf, the Strait of Hormuz, and the Gulf of Oman to restrict crude exports from the region. Meanwhile, a Saudi-led coalition intercepted a ballistic missile launched toward the Red Sea port city of Yanbu. The Yanbu port serves as a critical route for Saudi Arabia to bypass the Strait of Hormuz, though initial assessments indicated no damage to its infrastructure.
Global Supply Adjustments and Strategic Reserves
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, stated at the WPC Energy Congress that the kingdom maintains the ability to reroute, substitute, and recover exports despite ongoing regional conflicts. Saudi Arabia continues to ramp up shipments through ship-to-ship transfers in the Persian Gulf to bypass regional bottlenecks.
Responding to tight supply conditions, the International Energy Agency reached an accord on Thursday to inject over 20 million barrels of fuel into the market. Furthermore, the United States Department of Energy solicited proposals for swapping up to 17 million barrels of crude from the Strategic Petroleum Reserve, adding to a prior 172-million-barrel loan coordinated among member nations of the International Energy Agency.
