Brent crude hits $112 after US kills Iranian commander, Houthi strikes
Brent crude jumped to $112.11 as Houthi attacks on Saudi energy sites revived Gulf supply fears, putting pressure on unsubsidised pump prices.
What happened1/6 US strike on Iran and Houthi attacks push Brent past $112
The US killed an Iranian commander, and Yemen's Iran-backed Houthi movement claimed six attacks on Saudi airports and energy facilities across the kingdom's eastern and western coasts, Riyadh and Najran.
Brent crude futures rose 1.19% to $112.11 a barrel, while US WTI crude climbed 1.21% to $103.20, according to APAC Media on 30 October.
Saudi air defence systems also intercepted a ballistic missile aimed at the Eastern Province, days after the Houthis claimed a strike on the Ras Tanura refinery.
The real numbers2/6 The figures behind the surge
$112.11Brent crude per barrel42.6 million bblEU strategic reserve release100 million bblG7 pledge, diesel and crudeUBS raised its year-end 2026 Brent forecast to $110 from $100, citing persistent geopolitical risk and possible Gulf production disruptions.
On the supply-response side, 11 European countries pledged to release 42.6 million barrels from strategic reserves by end of January 2027, including 20.5 million barrels of diesel. This follows a G7 pledge to release 100 million barrels of diesel and crude.
US crude stockpiles fell 1.9 million barrels to 410.6 million in the week ending 23 October, while Cushing hub inventories dropped 624,000 barrels.
Photo: Photo: CC0 via Openverse How it affects your wallet3/6 BUDI95 holders stay at RM1.99; others face the weekly review
Under BUDI95, eligible Malaysian citizens buy RON95 at the subsidised RM1.99 per litre within a monthly quota. That price is set by MOF and does not track the weekly market review.
Non-eligible buyers pay the unsubsidised market price, which is reviewed weekly. The exact current rate is published by MOF each review cycle.
e.g. a RM0.10 per-litre increase in the unsubsidised price adds RM4 to a 40-litre fill-up. The size of the next adjustment depends on the weekly review, not on today's headline alone.
Why it matters4/6 Talks in Tehran have not stopped the missiles
Senior Saudi and Iranian officials met in Tehran just days before the attacks, agreeing to address differences through dialogue. Saudi Arabia, Türkiye and Pakistan sent representatives.
US Vice President JD Vance reportedly sought to revive negotiations with Tehran, and Iranian officials signalled willingness to continue talks. None of that stopped the Houthi strikes.
The IEA, to which all EU nations belong, called in mid-October for members to step up oil-stock releases ahead of winter. The EU said it was taking the household impact seriously but was not worried about supply.
- 01/02
The figures behind the surge ✓Brent crude per barrel $112.11 Brent crude per barrel
What to watch5/6 US midterms on 3 November and EU releases by January 2027
US congressional midterm elections fall on 3 November 2026. Fuel costs have become a key domestic issue, and the prospect of further US action against Iran after the vote is keeping crude prices supported.
The 11-country EU release of 42.6 million barrels must be completed by end of January 2027. Watch whether the pace holds and whether the G7's 100-million-barrel pledge follows through.
For Malaysian drivers, the next weekly price review will show whether the $112 Brent level feeds into the unsubsidised RON95 rate. BUDI95 holders are insulated from that review.
Worth knowing6/6 Worth knowing
The Houthis are Iran-backed but operate from Yemen. Their attacks target Saudi territory and Riyadh-backed forces in Yemen, not Malaysian fuel imports directly. The link to your pump price runs through the global benchmark that feeds Malaysia's weekly price review mechanism.
42.6 million bbl 02/02EU strategic reserve release The figures behind the surge EU strategic reserve release
Questions people ask
What happens to non-BUDI95 buyers when crude surges?
They pay the unsubsidised market price, which is reviewed weekly. The exact current rate is published by MOF each review cycle. The RM1.99 floor does not apply to them.
Why are European countries releasing oil reserves?
After the US-Israeli conflict with Iran pushed energy prices sharply higher, the G7 pledged a 100-million-barrel release. Eleven EU nations then committed 42.6 million barrels of their own, due by end of January 2027, to ease supply fears before winter.
What happens if I exceed my monthly BUDI95 quota?
The RM1.99 subsidised price applies within the monthly quota set by MOF. Beyond that quota, you pay the unsubsidised market price. Check MOF for the current monthly quota figure.
Source: Ministry of FinanceReutersMalay Mail
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