Fears of Middle East clashes disrupting energy supplies briefly pushed oil to about $110 a barrel on Friday, while U.S. diesel prices climbed above $6 a gallon. Saudi Arabia's Energy Ministry said a critical pipeline from the Persian Gulf to the Red Sea was "targeted multiple times" and shut down as a precaution.

Concerns broadened after reports that the Houthi militia had seized a strategic Red Sea island and port city. Iran's foreign ministry said Persian Gulf states planned to meet with Iran on Monday in Oman to discuss the Strait of Hormuz. Brent crude surged early Friday before easing to about $105 a barrel; West Texas Intermediate traded as high as $104 before falling to about $99.

The International Energy Agency lowered its forecast for global oil demand this year, expecting a drop of 2.5 million barrels a day. The average price of a gallon of diesel jumped to $6.06, according to AAA, up 60 percent since the United States and Israel attacked Iran on Feb. 28. Gas prices rose to $4.30 a gallon, up 44 percent.

The jump has stoked fears of broader inflation. Consumer prices rose at an annual pace of 3.4 percent in August. Higher energy prices are squeezing consumers and could become a headache for Republican lawmakers trying to retain control of Congress in November.