Oil prices surge as US storm and Saudi attacks threaten supplies

Oil prices surged by more than 1% on Wednesday, with Brent crude reaching $101.60 per barrel. The rise came amid fresh supply concerns that overshadowed recent optimism over increased Middle East crude supplies. WTI crude also climbed 1.05% to $90.38 per barrel as disruptions in both the US and Saudi Arabia threatened global oil supply chains.

The US Gulf of Mexico faces potential disruptions from an approaching storm, forecast to become the first Atlantic hurricane of 2026 within two days. The storm could impact 15% of US crude production, 5% of natural gas output, and six refineries, which collectively represent about 50% of the country’s total refining capacity. Meanwhile, Saudi Arabia has seen increased crude supplies, with the East-West pipeline reaching 5.8 million barrels per day, according to Saudi energy minister Prince Abdulaziz bin Salman.

Tensions in the Middle East added to supply risks, as Saudi airports in Jazan and Najran were attacked twice on Monday evening. The escalating hostilities between Saudi Arabia and Yemen’s Iran-backed Houthis have raised concerns over regional stability. Analysts warn that these disruptions could keep oil prices elevated near the $100 mark without significant de-escalation.

The wider geopolitical tensions involving Iran remain unresolved, with US President Donald Trump expressing uncertainty over Iran’s leadership during the ongoing US-Israeli war. Iran’s foreign ministry spokesman, however, asserted that Washington is well aware of its decision-making system.