Brent crude holds near five-month high as Middle East risks rise

Brent crude traded near a five-month high on Tuesday as investors weighed escalating attacks in and around the Middle East against the possibility of additional Russian fuel supplies. Reuters put the benchmark at $110.10 a barrel at 03:19 GMT after it had reached $110.70, the highest level since 20 May. Intraday prices can change quickly and are not the same as a final settlement.

The risk premium has risen after Houthi attacks and reported incidents involving vessels in strategic waters. The previous session's Reuters reporting also recorded Brent above $110 before prices eased on discussion of a possible sanctions waiver affecting Russian energy. Associated Press reporting on the regional escalation supports the security context, but no broad physical interruption to global oil flows had been confirmed at publication.

That distinction matters: the price reflects expectations about potential disruption as well as barrels actually removed from the market. If tankers continue moving and producers compensate for local losses, part of the premium could recede. A confirmed closure, damaged export infrastructure or wider military confrontation could push it higher. The immediate indicators are shipping traffic, insurance costs, export volumes and official production decisions rather than any single volatile market quote.