Brent Crude Hits Five-Month High as Mideast Tensions Weigh on Markets

Oil prices climbed again Friday, adding to the inflation concerns hanging over markets.

The numbers

Brent crude futures rose 79 cents to $113.96 a barrel by 08:10 GMT (4:10 a.m. ET), after earlier touching $114.72, the highest since May 4, Reuters reported. U.S. West Texas Intermediate gained $1.10 to $100.57. Brent is on track for a third straight weekly gain of almost 4%.

What is driving it

Houthi attacks in Saudi Arabia raised fears of further supply disruption. Reuters reported that Saudi Aramco ordered the evacuation of its Dhahran headquarters on Thursday as fighting intensified. UBS analyst Giovanni Staunovo said traders remain worried that an escalation could, in the worst case, disrupt supply again. A pipeline shutdown in Libya also cut output at two fields.

Stocks

U.S. stock futures were mixed early Friday after Thursday's steep tech selloff.

Why it matters for crypto

Higher energy prices can keep inflation elevated, which makes it harder for the Federal Reserve to ease and tends to pressure risk assets such as bitcoin. The Fed's Oct. 28 decision is the next key event, and analysts have pointed to Middle East tensions as one of the factors that could either weigh on or lift crypto markets depending on how they unfold.