Oil surges past $110 as Middle East attacks threaten Hormuz supplies

Brent crude hit US$110 a barrel on Friday for the first time since May, as escalating attacks around the Strait of Hormuz raised fears of tighter global supplies. Brent settled 3.7% higher at US$109.86, its highest close since May 19. US benchmark WTI rose 3.5% to US$101.41. Attacks around Hormuz have intensified over the past ten days. Iran says it is responding to a US blockade of its ports and tougher sanctions imposed last month. Traders are also uncertain about how much diesel Russia can supply to the market, adding further pressure to prices.