Brent futures climbed 93 cents to $101.51 a barrel, while U.S. West Texas Intermediate rose 82 cents to $90.25, as market participants weighed supply risks from a developing Atlantic hurricane and recent Houthi attacks on Saudi Arabia.
U.S. forecasters warned that a storm forming in the Gulf of Mexico would become the first Atlantic hurricane of 2026 within two days, potentially disrupting oil and gas production in the region that accounts for 15% of U.S. crude output and 5% of natural gas.
Tim Waterer, chief analyst at KCM Trade, described the storm as an “unwelcome complication for crude,” noting that production and refining disruptions could worsen an already strained supply side.
U.S. refineries in Gulf states, which handle roughly half of the country’s 18.2 million barrels per day capacity, could see outages, while crude and gasoline inventories fell and distillate stocks edged up last week.
Meanwhile, Saudi Arabia’s airports in Jazan and Najran were hit by two Houthi‑backed attacks, and the kingdom intensified airstrikes to support Yemeni government forces in a campaign to retake territory from the rebels.
Chief oil analyst Mukesh Sahdev of X Analysts warned that “attacks and refinery outages are likely to keep the cracks elevated,” suggesting prices would stay near the $100 level without a significant de‑escalation.
U.S. President Donald Trump reiterated that U.S.‑Iran relations remain strained, while Iran’s foreign ministry said Washington knows the decision‑making structure in Tehran.
With Gulf of Mexico production and Middle East supply both under pressure, market watchers expect oil prices to remain elevated in the coming weeks.
