Oil rises above $100 a barrel amid Houthi attacks and US storm fears

Oil prices pushed back above the $100 a barrel threshold on Wednesday, 7 October 2026, as energy markets confronted a volatile mix of supply disruptions, violent escalations in the Middle East, and extreme weather threats developing off the coast of the United States. According to Reuters reporting, Brent crude rose 0.92% to reach $101.51 a barrel, while US West Texas Intermediate advanced by the same percentage to settle at $90.25.

The upward pressure on energy markets reflects a delicate balancing act between returning regional barrels and continuous geopolitical shocks, Investinglive reported. Brent's substantial premium over WTI underscores that the vast majority of current market risk is concentrated in seaborne, Middle East-linked barrels rather than domestic US supply.

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Weather systems are compounding these concerns. US forecasters warned that a brewing disturbance in the Gulf of Mexico could rapidly develop into the first Atlantic hurricane of the season within two days, directly threatening offshore operations that account for 15% of US crude production and 5% of its natural gas. KCM Trade chief analyst Tim Waterer described the weather threat as an unwelcomed complication that adds severe production and refining headaches to an already tense market, AsiaOne noted. Furthermore, refineries in US Gulf states represent roughly half of the nation's total refining capacity.

Geopolitical hostilities in the Middle East continue to drive market anxiety. Saudi Arabia has faced persistent assaults, including drone and missile strikes directed at airports in Jazan and Najran, which injured three people and caused limited damage according to Saudi authorities. These attacks followed earlier incidents that forced the temporary precautionary shutdown of the major East-West Pipeline, which bypasses the troubled Strait of Hormuz to carry crude directly to Red Sea export terminals. Saudi Energy Minister Prince Abdulaziz bin Salman reported that flows through the pipeline had subsequently rebounded toward normal capacity, reaching close to 6 million barrels per day against a maximum capacity of around 7 million barrels, Investinglive detailed. Argus later reported that while three of the pipeline's 11 pumping stations sustained damage during the initial assault, the conduit itself remained structurally intact.

The wider Bab el-Mandeb Strait region has similarly seen severe instability. Spectrum News reported that Houthi rebels seized Mayun, a strategic volcanic island also known as Perim, near the southern entrance of the Red Sea shipping lane. Regional officials confirmed the territorial grab, which expands the tactical fronts in the ongoing conflict and increases the vulnerability of commercial oil transit.

Policy interventions have been deployed to cool the surging market. Following pressure from US President Donald Trump, the Group of Seven agreed on Friday to release 100 million barrels of crude and diesel from emergency stockpiles, while also pledging to avoid implementing energy export restrictions. The International Energy Agency was slated to meet to iron out contribution quotas among member nations, as diesel prices hover near record highs due to enduring export curtailments originating from the conflicts in Ukraine and Iran.

Market analysts maintain that prices will likely stay heavily supported without a definitive, material de-escalation in regional hostilities. Mukesh Sahdev, chief oil analyst at X Analysts in Sydney, noted that refinery outages and ongoing infrastructure attacks will keep crack spreads elevated and transmit scarcity directly into crude values, according to AsiaOne.

Attention now shifts firmly toward upcoming inventory reports. Analysts surveyed ahead of official releases expect a domestic crude build of close to 2 million barrels for the week, which would mark three consecutive weekly inventory increases. Official figures from the US Energy Information Administration are scheduled for release.