Storm and Middle East Attacks Drive Oil Prices Higher

Oil prices climbed on Wednesday as global markets reacted to potential supply disruptions from an impending storm in the US Gulf of Mexico and escalating conflicts in the Middle East. Brent futures gained 93 cents, or 0.92%, to reach $101.51 per barrel, while US West Texas Intermediate (WTI) crude rose 82 cents, or 0.92%, to $90.25. Forecasters warned that a storm forming in the Gulf could soon become the first Atlantic hurricane of 2026, threatening key oil and gas production facilities.

The storm, which could disrupt six refineries, poses a significant risk to US energy infrastructure, as the Gulf region accounts for 15% of the country’s crude oil and 5% of its natural gas output. KCM Trade chief analyst Tim Waterer described the storm as an “unwelcome complication for crude,” noting that it could exacerbate existing supply-side challenges in the market.

Meanwhile, tensions in the Middle East intensified as Yemen’s Iran-backed Houthis launched attacks on Saudi airports in Jazan and Najran. The Saudi aviation authority confirmed the strikes, which occurred amid a Saudi-backed offensive against the Houthis. Analysts suggested that these attacks and potential refinery outages would likely sustain elevated oil prices, keeping them near the $100 mark without signs of de-escalation.

Geopolitical uncertainty was further heightened by US President Donald Trump’s remarks on Tuesday, where he asserted that Iran’s leadership was in disarray. Trump stated, “Their leaders are gone, their second group of leaders are gone, and the biggest problem I have is nobody knows who the hell is running the country.” Iran’s foreign ministry spokesman countered that Washington was fully aware of Iran’s decision-making structure.