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- Brent crude climbed to $106.03 and US WTI to $94.42 in early trading, following Tuesday’s decline.
- Cyprus fuel prices remain elevated, with average unleaded 95 petrol at €1.757 per litre and diesel at €2.022, according to official figures.
- UKMTO said an oil tanker and a container ship were struck by unidentified projectiles while passing through the Strait of Hormuz.
- Morgan Stanley raised its fourth-quarter Brent forecast to $105 a barrel, citing tight physical supplies, higher freight costs and geopolitical risks.
Oil prices climbed towards $107 a barrel on Wednesday after fresh attacks on commercial vessels in the Strait of Hormuz and Saudi Arabian energy infrastructure raised concerns over the recovery of Gulf exports and the cost of fuel in Cyprus.
Brent crude, the international benchmark, rose to $106.03 a barrel in early trading, recovering from Tuesday’s 0.9% decline. US West Texas Intermediate (WTI) also increased, reaching $94.42, according to Reuters.
The latest developments have renewed uncertainty over global energy supplies, despite signs that oil production and exports are recovering from months of disruption.
Cyprus fuel prices remain high
The rise in oil prices comes as motorists and businesses in Cyprus continue to face elevated fuel costs.
The latest published figures from the Consumer Protection Service put average unleaded 95 petrol at €1.757 per litre and diesel at €2.022. Heating oil averaged €1.678 per litre, while diesel reached €2.126 at the most expensive petrol station in Limassol.
The Cyprus consumers association previously estimated that fuel price increases had cost households and businesses an additional €23 million between March and August.
Brent has risen by more than 70% since the beginning of 2026, as the conflict involving the United States and Iran continues to disrupt energy supplies and maritime transport.
Cyprus is particularly exposed to international price movements because it depends on imported petroleum products. The cost of fuel also reflects refined product prices, transport expenses and movements in the euro-dollar exchange rate.
Attacks threaten oil shipments through the Strait of Hormuz
The latest rise followed renewed Iranian attacks on commercial vessels travelling through the Strait of Hormuz, alongside strikes by Yemen’s Iran-aligned Houthi movement against Saudi Arabia.
The United Kingdom Maritime Trade Operations (UKMTO) said an oil tanker and a container ship were struck by unidentified projectiles on Tuesday while passing through the strait.
Iranian officials subsequently told Reuters that Tehran had introduced new tactics around 10 days earlier, increasing the frequency of attacks against vessels it considers to be violating restrictions on passage through the waterway.
The operations have also extended towards the Gulf of Oman and waters near Qatar and the United Arab Emirates, raising further concerns about commercial shipping safety.
More supertanker operators are now avoiding the Persian Gulf, threatening to slow the recovery in crude exports while increasing freight and insurance costs.
Cyprus shipping sector faces added risks
The security situation also has implications for Cyprus’ maritime services sector, particularly shipmanagement companies based in Limassol that face higher operating costs and additional safety requirements.
Earlier this month, the Dynacom-managed tanker Lipsi, controlled by Greek shipowner George Prokopiou, was struck by an unidentified projectile in the Strait of Hormuz. The incident damaged its engine room and left the vessel disabled.
The attack was followed by a strike on the Greek-flagged LNG carrier Maran Gas Mystras, operated by the Angelicoussis Shipping Group. The vessel remained operational and continued its voyage.
The incidents underline the risks facing shipping operators even as efforts continue to restore oil exports from the region.
Saudi production recovers despite fresh attacks
Gulf oil production has begun to recover, offering some relief to international markets, but the latest attacks have raised doubts about how quickly supplies can return to normal.
According to figures submitted to OPEC, Saudi Arabian crude production increased by more than two million barrels per day in September, reaching 8.372 million barrels daily. Output nevertheless remains below pre-war levels.
Production across OPEC and its allies rose by approximately 900,000 barrels per day to 39.07 million, reflecting efforts to restore supplies after months of disruption.
However, a Houthi attack on an administrative facility belonging to Saudi Aramco in Dhahran caused a limited fire. No interruption to oil production or exports has been confirmed.
The strike followed further missile and drone attacks against Saudi Arabia, including its main international airport in Riyadh, increasing concerns about a wider regional conflict.
US President Donald Trump has also raised the possibility of involving Turkish President Recep Tayyip Erdogan in efforts to respond to the Houthi attacks.
Banks raise oil price forecasts
The continuing uncertainty has prompted financial institutions to revise their expectations for oil prices.
Morgan Stanley raised its fourth-quarter Brent forecast to $105 a barrel, citing tight physical supplies, higher freight costs and geopolitical risks. The bank also increased its forecasts for physical Dated Brent by $5 a barrel for the current and following quarters.
OPEC expects global oil demand to increase by 2.55 million barrels per day in 2027, reaching approximately 108.3 million barrels daily. The projected increase partly reflects the need to replenish inventories depleted during conflicts in the Middle East and Ukraine.
Meanwhile, higher Russian diesel exports could offer some relief to international fuel markets. Trump has defended arrangements allowing additional Russian diesel supplies to reach buyers, arguing that greater availability could help contain prices. The approach has drawn criticism from Republican lawmakers over its implications for sanctions against Moscow.
Nevertheless, the security of Gulf shipments remains a major concern for traders, particularly as oil exports recover without a corresponding improvement in maritime safety.
Cyprus measures aim to ease household costs
The prolonged period of high oil prices has already prompted government measures in Cyprus to ease household energy costs.
A €70 million cost-of-living package announced in September includes a reduction in heating oil excise duty from 7.4 cents to 2.1 cents per litre from November 1, alongside extended electricity subsidies and other support measures.
However, sustained increases in international oil prices could reduce the impact of this support if higher import costs are passed on to consumers.
Price movements in global crude markets do not translate immediately into changes at petrol stations. Domestic prices also depend on refined fuel costs and the timing of new shipments, meaning the effect on Cypriot consumers may emerge gradually.
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