Oil tops $110 as Middle East strikes outweigh Russian supply relief

Oil prices rose above $110 per barrel on Tuesday as renewed Middle East attacks outweighed expectations of easier Russian energy exports, keeping Brent near a five-month high. Brent futures gained 0.5% to $110.10, while US West Texas Intermediate for November delivery rose 0.24% to $103.91. The Houthi movement claimed new strikes on Saudi energy and shipping targets, with at least 18 vessels attacked in the Gulf over the prior two weeks, intensifying concerns about the Strait of Hormuz. President Trump's October 16 executive order eased sanctions on Russian oil but did not immediately boost supply, as Russian production remains about 870,000 barrels per day below year-ago levels. Goldman Sachs Research forecasts Brent falling to $90 in December and averaging $80 in 2027, estimating a geopolitical premium of nearly $25 per barrel in physical spot prices. Analysts note that higher insurance costs and freight rates may keep delivered oil prices elevated even if alternative routes are found.