Oil prices jumped to their highest close in six months on Friday after a tanker was attacked in the Strait of Hormuz, the narrow channel through which a large share of the world’s seaborne oil passes. The surge rounds off a bruising month for anyone paying to fill a tank or heat a home, and it came as gold, the traditional safe haven, slipped below the symbolic $4,000 an ounce mark.
What happened in the Strait of Hormuz
According to the UK Maritime Trade Operations service (UKMTO), cited by Reuters, a tanker in the strait was hit on Friday by explosive devices attached to its hull from a small boat. Nobody has been identified as responsible. Maritime sources told Reuters it was the first known successful limpet-mine strike in the strait since the US-Israeli war with Iran began in February.
The attack came against a tense regional backdrop. Reuters reported that Yemen’s Houthis claimed on Thursday to have attacked several Saudi sites, including refineries at Ras Tanura and Rabigh, and that the US has ordered non-emergency government staff to leave Saudi Arabia. Qatari mediators returned to Tehran on Friday to pursue a US-Iran deal, Reuters reported, but diplomatic efforts have so far not produced an agreement, Kitco noted.
The numbers
Brent crude for December delivery, which expired on Friday, rose $2.76, or 2.4%, to settle at $117.64 a barrel after touching $118, Reuters reported. US benchmark WTI gained 2.08% to settle at $104.12. Across October, Brent climbed 13.6% and WTI 15.2%, their fourth straight monthly gain and the highest settlements since the end of April.
Precious metals moved the other way. At around 8.50am New York time (12.50pm Irish time) on Friday, spot gold was near $3,958.80 an ounce, down about 1.3% on the day and heading for a second consecutive monthly loss, according to Kitco. Silver fell more than 4% to around $50.08, its lowest level of the year.
The reason is interest rates. Higher oil prices feed inflation, and inflation means central banks are more likely to raise rates, which makes non-yielding assets such as gold less attractive. The US Federal Reserve held rates at 3.75% to 4% on Wednesday, but two policymakers voted for a rise, and futures markets were pricing in a roughly 83% chance of a December hike, Kitco reported. US PCE inflation, the Fed’s preferred measure, rose to 3.6% in September.
What it means for Irish households
Ireland imports almost all of its oil, so a sustained rise in crude prices tends to show up at the pump and in home heating oil bills within weeks. Fuel was already expensive before Friday’s jump: the AA’s October survey put average prices at about 198c a litre for petrol and 215c for diesel.
Energy costs are also being felt in the wider economy. The Irish Times reported on Friday that European natural gas prices have risen to their highest level since early 2022, and that the European Central Bank may raise rates again as soon as December, a prospect that matters for the many Irish households on tracker and variable mortgages.
There is a small cushion: Budget 2027 kept the reduced rate of excise on fuel in place until 28 February 2027, with the full rate being restored in phases until the end of June, RTÉ reported.
What happens next
Traders will be watching for any further attacks on shipping, the outcome of the Qatari-mediated talks and whether US and allied forces escalate their response. Analysts at Saxo Bank, quoted by Reuters, expect crude to settle at $70 to $90 a barrel once the conflict ends, still above the pre-war range of $60 to $70. Next Tuesday’s US midterm elections were also flagged as a possible source of volatility.
For Irish motorists, the AA’s next monthly fuel price survey is due on 9 November and will give the first clear picture of how much of October’s surge has reached forecourts.
This article is for information only and is not financial advice. Commodity prices are volatile; consider independent advice before making investment decisions.
Sources
- Reuters (via Central Oregon Daily): Oil prices set for fourth straight monthly gains as tanker attack highlights supply risks (30 October 2026)
- Kitco News: Gold drops below $4,000, silver tumbles as Hormuz attack lifts oil prices (30 October 2026)
- The Irish Times: Ireland’s economy drives faster-than-expected euro zone growth (30 October 2026)
- AA Ireland: Fuel prices (October 2026 survey) (accessed 30 October 2026)
- RTÉ: At a glance – Key takeaways from Budget 2027 (6 October 2026)
Featured image: Mina Al Fahal from sea by Wusel007, licensed BY-SA 3.0.
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