Oil jumps 4% as Iran war fears and Hurricane Isaias threaten supplies, pushing Brent above $104
Oil prices settled about 4% higher on Thursday as renewed concerns over the Iran war combined with mounting supply disruptions from Hurricane Isaias in the U.S. Gulf of Mexico.
Brent crude futures rose $4.08, or 4.1%, to settle at $104.28 a barrel, while U.S. West Texas Intermediate gained $3.21, or 3.6%, to $91.49. Both benchmarks climbed by more than $5 at one point, with Brent reaching its highest level since September 29.
Prices were driven partly by concerns over possible renewed U.S. strikes on Iran, but retreated from their session highs after President Donald Trump said Washington was having “productive discussions” with Tehran and would not attack Iran before the November 3 U.S. midterm elections.
Hurricane Isaias added another source of supply pressure. U.S. Gulf of Mexico producers had shut down about 1.3 million barrels per day of oil production by Thursday — roughly 63% of the region’s current output — as the storm approached. Shell, Chevron and BP were among companies that curtailed offshore operations.
The Iran war has kept oil markets volatile for months, particularly around the Strait of Hormuz, which handled shipments equivalent to roughly 20% of global oil and fuel consumption before the conflict. Tanker attacks in the strait last week reached their highest weekly level since the war began, adding to concerns over the reliability of Gulf exports.
