Oil Prices Jump on Storm and Middle East Supply Fears

Oil prices climbed on Wednesday, driven by concerns over supply disruptions in the U.S. Gulf Coast and escalating tensions in the Middle East. Brent crude futures rose 93 cents, or 0.92%, to $101.51 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 82 cents, or 0.92%, to $90.25 per barrel.

A storm forming in the Gulf of Mexico is expected to become the first Atlantic hurricane of 2026 within two days, threatening oil and gas production facilities. The affected offshore areas contribute 15% of U.S. crude oil and 5% of natural gas production. The storm could disrupt six refineries, which make up about half of the nation's refining capacity.

Supply concerns were further fueled by attacks on Saudi Arabian airports in Jazan and Najran by Yemen's Iran-backed Houthis. The escalating conflict has led to increased airstrikes by Saudi-backed Yemeni government forces. Analysts warn that these disruptions will keep oil prices elevated near the $100 mark without significant de-escalation.

U.S.-Iran relations remain tense, with former U.S. President Donald Trump stating that there is uncertainty about Iran's leadership during the ongoing conflict. Meanwhile, Iran's foreign ministry spokesman asserted that Washington is well aware of Iran's decision-making system.