Oil Prices Hit Highest Level Since May Amid Middle East Escalation

Price surge: Global oil prices jumped to their highest levels since May on Thursday (October 22), driven by escalating Middle East tensions and renewed attacks on Saudi Arabia.
Benchmark figures: Brent crude rose 3.08% to USD 112.17 per barrel, while U.S. West Texas Intermediate (WTI) climbed to USD 99.83 per barrel, according to Reuters.
Houthi attacks: The rally followed strikes by Yemen’s Iran-aligned Houthi movement on Saudi targets, including an oil field and a civilian airport.
Casualties: At least three people were killed, raising concerns over the security of regional energy infrastructure.
U.S. response: Washington moved to withdraw some diplomatic personnel and their families from Saudi Arabia and other Middle East missions amid fears of further escalation.
Regional uncertainty: Reports of explosions in southern Iran and ongoing threats to commercial shipping near the Strait of Hormuz added to market jitters.
Strait of Hormuz risk: The waterway is vital to global energy shipments, and any further disruption could push prices higher.
Wider impact: The surge has renewed fears of higher fuel costs and inflationary pressure in oil-importing countries, including Sri Lanka.
Local outlook: The effect on domestic fuel prices will depend on international market trends, procurement costs and local pricing decisions.