Brent crude touched $110 a barrel on Friday for the first time since May, as traders weighed the risk to supplies from escalating tensions in the Middle East.
Brent futures settled $3.94, or 3.7 percent, higher at $109.86, the highest close since 19 May. US West Texas Intermediate futures closed $3.44, or 3.5 percent, higher at $101.41.
A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards the Red Sea port of Yanbu. Consultancy Rapidan Energy Group said initial reports showed no damage there. Analysts at Kpler said stepped-up Iranian attacks around the Strait of Hormuz had pushed Gulf crude flows sharply lower.
Markets were also watching how much diesel Russia can supply, after a drone attack on Thursday led the Ryazan refinery to suspend a primary crude distillation unit, according to industry sources.
Sri Lanka imports its fuel, so higher world prices can feed into local fuel and electricity costs. The International Energy Agency agreed on Thursday to release more than 20 million barrels of fuel to the market.
