Brent Jumps 4% to $104 as Tanker Attacks and a Gulf Hurricane Threaten Supply

Brent Surges 4% to $104.28 on Supply Fears

Brent crude oil prices jumped about 4%, or 4.1%, to settle at $104.28 a barrel on Thursday, according to AP. The sharp rise followed a series of escalating attacks on tankers near the Strait of Hormuz and production shutdowns in the US Gulf of Mexico due to an approaching hurricane. Earlier in the day, Brent neared $106 before retreating after President Donald Trump said 'productive discussions' were underway with Iran.

Reuters reported that by 07:27 a.m. Saudi time, Brent crude futures were up $2.28, or 2.28 percent, at $102.28 a barrel, reflecting significant intraday volatility as traders responded to evolving geopolitical and weather-related threats.

Tanker Attacks Near Hormuz Reach New Highs

Concerns over Middle East oil supply intensified as attacks on tankers transiting the Strait of Hormuz reached their highest weekly level since the start of the Iran war, according to Reuters. The UK Maritime Trade Operations agency said a tanker north of Qatar was struck by multiple projectiles on Wednesday, resulting in casualties.

Saul Kavonic, head of energy at MST Marquee, told Reuters that the frequency of Iranian attacks on ships is now at its highest point since the conflict began and is likely to intensify further. Reuters noted that the Strait of Hormuz previously carried shipments equal to about 20 percent of global oil and fuel before the war. The increased risk and logistical costs for cargoes and crews have contributed to the upward pressure on oil prices.

Hurricane Forces US Gulf Production Shutdowns

In the United States, hurricane threats have prompted major oil producers to curtail offshore operations in the Gulf of Mexico. Shell and Chevron confirmed on Wednesday that they were shutting platforms as Hurricane Isaias approached, Reuters reported.

According to the Marine Minerals Administration, about 25.08 percent of current oil production and 16.37 percent of natural gas production in the Gulf had been shut in as of Wednesday. Inventory data from the US Energy Information Administration showed that crude stockpiles fell by 3.2 million barrels to 424.1 million barrels in the week ended October 2, exceeding analysts’ expectations for a 1.7 million-barrel decline, Reuters said. Distillate fuel inventories, including diesel and jet fuel, dropped by 42,000 barrels to 105.14 million barrels, remaining well below the five-year seasonal average.

Strategic Stock Releases Offer Limited Relief

Governments have sought to ease supply disruptions by accelerating the release of oil stocks. Reuters reported that the International Energy Agency agreed to prioritize diesel supplies under a plan launched in March, but ANZ analyst Daniel Hynes noted that the IEA's release would likely consist of barrels already included in the group's original 400-million-barrel plan at the start of the Middle East conflict. Hynes stated that strategic stock releases can temporarily augment supply flows but do not create new production capacity.

Why It Matters: Energy Security and Market Volatility

The convergence of heightened geopolitical risks in the Middle East and weather-related disruptions in the US Gulf has amplified concerns over global energy security. For markets, the sharp 4% rise in Brent to $104.28, as reported by AP, underscores the sensitivity of oil prices to supply shocks and the potential for further volatility. Elevated prices can ripple through to inflation and corporate costs, while persistent uncertainty complicates policy responses for both energy producers and consumers.