Oil Prices Jump on Gulf Storm Threats and Houthi Attacks

Oil prices surged on Wednesday following a combination of storm warnings in the Gulf of America and escalating tensions in Saudi Arabia. Brent crude futures rose by 93 cents, or 0.92%, to reach $101.51 per barrel, while U.S. West Texas Intermediate crude (WTI) climbed by 82 cents, or 0.92%, to $90.25.

The price increases were driven by U.S. forecasters' warnings of a developing weather system expected to intensify into the first Atlantic hurricane of 2026 within 48 hours. The projected path of the storm threatens offshore installations crucial for U.S. energy production, accounting for 15% of total crude oil output and 5% of natural gas.

Simultaneously, Saudi Arabia faced missile threats from Yemen's Iran-aligned Houthis. The Saudi-led coalition intercepted and destroyed a ballistic missile aimed at the 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 coincided with reports of two powerful explosions near the international airport in the southern port city of Aden, adding to the geopolitical uncertainties affecting oil markets.