Oil Prices Surge Nearly 4% as Middle East Shipping Attacks Raise Supply Fears

London — Oil prices jumped nearly 4% on Thursday as markets faced renewed concerns over Middle East supply disruptions alongside interruptions to U.S. offshore production.

Brent crude futures gained $4.14, or 4.13%, to reach $102.28 a barrel by 0900 GMT. U.S. West Texas Intermediate crude rose $3.71, or 4.2%, to $91.99.

The latest rally came as attacks on oil tankers in the Gulf and the strategically significant Strait of Hormuz intensified. The waterway had previously handled shipments equal to about 20% of global oil and fuel supplies, meaning any disruption could have major implications for energy markets.

Shipping attacks have become more frequent in October as the conflict involving Iran enters its eighth month. Saul Kavonic, head of energy research at MST Marquee, said Iranian attacks on ships had reached their highest frequency since the conflict began and could rise further.

The shipping risks come as governments and international energy agencies work to prevent a worsening fuel shortage. The International Energy Agency has agreed to speed up the release of oil stocks and give priority to diesel supplies as governments respond to record fuel prices and disruptions.

Weather-related risks are also adding pressure to the market. Hurricane Isaias is moving toward U.S. offshore production areas in the Gulf of Mexico, leading companies including Shell and Chevron to scale back operations.

The Marine Minerals Administration reported that producers had shut in 25.08% of current U.S. Gulf of Mexico oil production and 16.37% of natural gas production as of Wednesday because of the storm.

U.S. inventory data also supported crude prices. Government figures showed that crude stockpiles dropped by more than anticipated, while diesel inventories posted a smaller decline.

Markets have also been closely following developments involving Iran. An Axios report said Washington was preparing to restart major combat operations against Iran, though Reuters said it was unable to independently verify the report.

Chris Beauchamp, chief market analyst at IG, said the approaching U.S. storm and geopolitical developments were helping keep oil prices above $100.

With shipping disruptions, production cutbacks and geopolitical uncertainty unfolding at the same time, energy markets remain particularly vulnerable to any further deterioration in conditions across the Middle East.