Brent Crude Hits $110 as Iran Threatens Hormuz Control

Brent crude oil prices approached a five-month high of approximately $110 per barrel on October 20, 2026, following threats from Iran to restrict the Strait of Hormuz. Mohammad Reza Aref, First Vice-President of Iran, stated that Iran has "no choice" but to assert control over the strategic waterway to protect national security, though he suggested safe passage for friendly nations.

Aref attributed the crisis to the United States, warning that Washington "must pay the price." Despite these tensions, U.S. Energy Secretary Chris Wright reported that Gulf crude exports have recovered to about 80% of pre-war levels, although refined product shipments remain constrained.

To stabilize the market, the Trump administration is authorizing the sale of sanctioned oil tankers to expand legitimate shipping capacity. Meanwhile, Iraq has increased its exports to over 3.4 million barrels per day in October by implementing deep discounts.