Brent crude climbed above $110 a barrel Friday before settling at $109.86, its highest close since May 19. West Texas Intermediate rose 3.5% to $101.41, closing above $100 for the first time since September, according to an NBC News report.
Supply fears lifted crude
The rally reflected renewed concern about oil supplies. NBC pointed to the conflict involving Iran and the Strait of Hormuz, along with attacks on Russian energy infrastructure during the war in Ukraine. An attack on Russia's Ryazan refinery added to worries about disruptions in an already tense market.
Higher crude prices can feed into fuel and transportation costs, complicating the inflation outlook. NBC reported that a sustained rise in energy prices could increase pressure for another Federal Reserve rate increase.
Technology shares faced a second strain
Stocks fell as oil rose, but energy was not the only pressure on the market. The Nasdaq 100 dropped 2.5%, while the S&P 500 fell 1%. The Philadelphia semiconductor index slid 3.8% for its eighth consecutive losing session.
Investors were also reassessing the cost of debt-funded artificial intelligence spending. CoreWeave and Nebius were among the Nasdaq 100's weakest performers, and NBC estimated that technology stocks lost more than $1 trillion in market value during Friday's decline.
