Storm and Attacks Drive Oil Prices Higher
Oil prices climbed on Wednesday as two major threats to supply emerged: a storm heading for US oil-producing regions and escalating attacks on Saudi Arabia by Yemen’s Iran-backed Houthis. Brent crude futures rose 93 cents, or 0.92%, to $101.51 a barrel, while US West Texas Intermediate (WTI) crude gained 82 cents, or 0.92%, to $90.25.
A storm forming in the Gulf of Mexico is expected to become the first Atlantic hurricane of 2026 within two days, potentially disrupting oil and gas production. The affected offshore areas produce 15% of US crude oil and 5% of natural gas. The storm could also impact six refineries, which account for about 50% of the national refining capacity of 18.2 million barrels per day (bpd).
Meanwhile, Saudi Arabia’s airports in Jazan and Najran were targeted in two attacks on Monday evening, as tensions between the kingdom and the Houthis escalated. The attacks coincided with a Saudi-backed offensive to retake territory from the Houthis, supported by increased airstrikes. Analysts suggest that supply disruptions and refinery outages will keep prices elevated near the $100 level without a significant de-escalation.
US-Iran relations remain strained, with US President Donald Trump stating that it is unclear who is currently running Iran. Iran’s foreign ministry spokesman, however, claimed that Washington is well aware of Iran’s decision-making system.