Oil Prices Climb on Gulf Storm and Middle East Tensions
Oil prices saw a significant rise on Wednesday as investors reacted to potential supply disruptions caused by both weather threats in the Gulf of America and ongoing conflict in Saudi Arabia. Brent crude futures climbed by 93 cents, or 0.92%, to reach $101.51 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 82 cents, or 0.92%, to $90.25 per barrel.
The price surge follows warnings from U.S. forecasters that a developing weather system in the Gulf of America is expected to strengthen into the first Atlantic hurricane of 2026 within the next 48 hours. The storm's projected path poses a direct threat to offshore installations that contribute to 15% of U.S. crude oil production and 5% of natural gas output.
Meanwhile, tensions in the Middle East escalated as the Saudi-led coalition intercepted and destroyed a ballistic missile launched by Yemen's Iran-aligned Houthis toward the Saudi city of Khamis Mushait. The coalition reported that the missile threats originated from Houthi-controlled areas, including the capital Sanaa and the governorates of Saada and Amran.
The developments occurred amid reports of two powerful explosions near the international airport in the southern port city of Aden, adding to the regional instability.