WTI crude surges $3.21 to close at $91.49 on reports US poised to strike Iran and storm batters Gulf of Mexico

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Summary · why it matters

West Texas Intermediate crude for November delivery jumped $3.21, or 3.64%, to close at $91.49 a barrel, while Brent crude for December delivery rose $4.08, or 4.07%, to settle at $104.28 a barrel. Oil prices were buoyed by concerns that conflict between the United States and Iran could escalate tensions in the Middle East, after NBC News reported, citing sources, that President Donald Trump and his White House national security team had discussed the possibility of the US resuming major military operations against Iran in the coming weeks, including the option of launching a strike before the November midterm elections. Prices also climbed after reports that Hurricane Isaias was moving into US offshore oil-producing areas, prompting the US Bureau of Ocean Energy Management to say that as of Thursday, oil and gas producers in the Gulf of Mexico had shut in about 1.3 million barrels per day of oil output, or 62.9% of current oil production capacity. Shell and Chevron said they were scaling back offshore operations in the Gulf of Mexico, while BP evacuated all staff and ordered production halted at the Na Kika and Thunder Horse platforms. Oil prices later pared gains after President Trump posted on Truth Social that the US was making progress in talks with Iran and would not attack Iran before the November 3 midterm elections. Iran's Tasnim news agency reported that Iranian Foreign Minister Abbas Araghchi said Iran would in the coming days deliver its response to US comments on Iran's proposal to end the war, and that Iran would continue negotiations, with the two sides having exchanged messages through intermediaries.

Impact on assets 5

Energy Transition & Power Demand▼
BP PLC
BP
▼ NegativeSupplyrelevance

BP evacuated all staff and halted production at the Na Kika and Thunder Horse platforms due to the storm.

Shell plc
SHEL
▼ NegativeSupplyrelevance

Shell is scaling back offshore operations in the Gulf of Mexico as the hurricane disrupts output.

Energy▼
Chevron Corp
CVX
▼ NegativeSupplyrelevance

Chevron is scaling back offshore operations in the Gulf of Mexico as Hurricane Isaias forces shut-ins, cutting its production.

Others▲
⛏Crude Oil WTI Futures
WTI
▲ PositiveGeopoliticsrelevance

WTI surged on fears of a US strike on Iran and storm-driven Gulf supply shut-ins of 1.3 million bpd.