Brent crude hits 5-month high near $110.70 as Gulf attacks and thin inventories drive prices up

Brent crude surged to $110.70 a barrel on Monday, its highest level since May 20, driven by fresh attacks on Gulf shipping and ongoing geopolitical tensions. US Energy Secretary Chris Wright reported that Gulf oil flows have recovered to about 80% of prewar levels, but thin onshore inventories at their lowest since at least 2016 and a diesel price crunch continue to support elevated prices. Traders are pricing in a significant risk premium, with US regular gasoline averaging $4.33 a gallon and energy inflation running at 20.4% year-over-year.