Oil prices moved higher on Wednesday as investors weighed potential supply disruptions in the Middle East and the United States.
Brent crude futures rose around 0.9% to $101.50 per barrel, while U.S. West Texas Intermediate futures gained about 0.4% to $89.80 per barrel.
Middle East Supply Fears Support Oil Prices
Oil prices had initially fallen toward $97 per barrel in the previous session.
The decline followed data showing that Gulf oil exporters had managed to exceed pre-war production levels for roughly half of September.
Markets were also encouraged by a Group of Seven pledge to release emergency energy reserves and by the reopening of Saudi Arabia’s East-West pipeline.
Together, those developments raised hopes that Middle East oil supplies could continue to recover.
Iran Tensions Push Brent Back Above $100
However, the decline in oil prices proved short-lived.
Brent crude quickly moved back above $100 per barrel as concerns increased over Iranian attacks on tankers travelling through the Strait of Hormuz.
Deutsche Bank analysts pointed to the renewed geopolitical risk as a major reason behind the rebound.
Iranian state media also reported an explosion near Qeshm Island, close to the Strait of Hormuz.
The reports increased fears that tanker traffic through one of the world’s most important oil shipping routes could face further disruption.
Strait of Hormuz Remains a Key Risk
The Strait of Hormuz has remained heavily disrupted since shortly after the joint U.S.-Israeli attack on Iran in late February.
Any further deterioration in security around the waterway could have major consequences for global crude supplies.
The region remains particularly important because a large share of Gulf oil exports pass through the strait.
Yemen Conflict Adds to Supply Concerns
Tensions have also intensified in Yemen.
Saudi-aligned coalition forces and Iran-backed Houthi militants have increased military activity in recent days.
Government forces and Saudi Arabia have stepped up airstrikes aimed at retaking Houthi-controlled territory.
Some of the fighting has taken place near the Bab el-Mandeb Strait, another important chokepoint for global oil shipments.
Oil Market Caught Between Supply Recovery and Geopolitical Risk
ING analysts said the market is currently facing competing forces.
On one side, oil supplies from the region appear to be improving.
On the other, persistent geopolitical risks continue to threaten those gains.
The analysts said oil prices may struggle to move sustainably lower until the risk of further supply disruptions is reduced.
For now, the market is likely to remain highly sensitive to developments across the Middle East.
U.S. Storm Threatens Energy Production
Supply concerns are not limited to the Middle East.
A potentially powerful storm moving toward major U.S. energy-producing regions has added another layer of uncertainty.
Forecasters said the storm could become the first Atlantic hurricane of 2026 within the next two days.
According to Reuters, the system could move toward areas responsible for around 15% of U.S. crude oil production and 5% of domestic natural gas output.
Any temporary shutdowns could tighten supplies further and support oil prices.
U.S. Crude Inventories Decline
U.S. inventory data also provided support to the market.
Figures from the American Petroleum Institute showed that crude oil inventories fell by 2.09 million barrels in the week ending October 2.
The API report is often viewed as an early signal for official U.S. inventory data.
Government figures are due later on Wednesday and could provide another catalyst for crude prices.
For now, oil markets remain caught between improving production levels and persistent risks from geopolitical tensions, shipping disruptions and extreme weather.
