Brent crude, the benchmark for oil traded worldwide, gained 3.1% on Friday 23 October to settle at $116.72 a barrel, its highest close since 29 April. US crude, West Texas Intermediate (WTI), rose 3.8% to $103.27. Brent rose 6.2% over the week, its third straight weekly gain.
Three worries drove it. The Houthis kept attacking Saudi Arabia, a reported oil spill off the United Arab Emirates added to supply concerns, and traders priced in renewed US strikes on Iran. US officials told The New York Times that the US and Israel have plans for fresh strikes on Iran after the US midterm elections.
India felt it the same day. The Sensex fell 125.56 points, or 0.17%, to 73,123.83, its fourth straight losing session, and the Nifty fell 87.65 points, or 0.39%, as crude passed $114 amid tension in West Asia. India imports most of its crude, so higher oil prices feed into fuel costs, inflation and the import bill.
Gold moved the other way. Spot gold fell about 4% over the week to below $4,000 an ounce, at $3,993.96, and in India 24-carat gold cost Rs 14,258 a gram on 24 October, its first rise in five days. Analysts linked gold's weakness to the oil rally: dearer crude revives inflation worries and strengthens expectations that interest rates will stay higher for longer, which makes gold, an asset that pays no interest, less attractive.
Oil prices are counted per barrel. On Friday the world price, called Brent, closed at $116.72. That is the highest since 29 April.
People worried about attacks on Saudi Arabia and about new US strikes on Iran. Worried buyers pushed the price up.
India buys most of its oil from abroad. On the same day, a main measure of Indian share prices fell for the fourth day in a row.