Oil prices rise as storms and air strikes threaten supply

Oil prices surged on Wednesday as market participants considered potential supply disruptions from a storm heading toward US oil-producing regions and Houthi attacks on Saudi Arabia amid rising tensions. Brent futures climbed 93 cents, or 0.92%, to $101.51 a barrel, while US West Texas Intermediate (WTI) crude increased 82 cents, or 0.92%, to $90.25.

Forecasts predicted the Gulf storm, the first Atlantic hurricane of 2026, would impact oil and gas facilities in the region, which supplies 15% of US crude oil and 5% of natural gas. Analysts warned the storm could disrupt production and refining, exacerbating existing supply constraints. US crude oil and gasoline inventories fell, while distillate stocks rose slightly last week, according to the American Petroleum Institute.

On Monday, Saudi Arabia faced two attacks on Jazan and Najran airports, escalating hostilities with Iran-backed Houthis who struck targets as Riyadh intensified airstrikes in support of a major offensive to reclaim territory from the rebels. Price instability was expected to persist at near $100 without any substantial de-escalation.