Oil Prices Surge Above $105 as Iran Tensions Escalate

An oil prices surge pushed Brent crude above $105 a barrel on Thursday, as traders weighed reports that the United States could resume major strikes on Iran, fresh attacks in the Red Sea region and storm-related shutdowns in the Gulf of Mexico. The move extended a volatile week for energy markets and added to inflation worries already pushing bond yields higher.

Barron’s reported that Brent futures for December delivery rose about 5.2 percent to $105.43 a barrel, the highest since mid-September, while West Texas Intermediate futures climbed about 5.1 percent to $92.79 a barrel, the highest since late September. Other market reports on Thursday put Brent near $105.46 and WTI near $92.82 in afternoon trading.

Why the oil prices surge accelerated Thursday

The immediate catalyst was a series of reports about possible US military action. Axios reported that the Pentagon had instructed US Central Command to complete preparations for a possible resumption of major combat operations against Iran, according to US officials cited by Axios and summarized by Just Security. The directive did not include a specific date, and officials said no final decision had been announced.

Separately, reporting by The Atlantic, cited by Barron’s and other outlets, suggested the White House had asked the Pentagon to draw up options for striking Iran before the November 3 midterm elections. Traders tend to react quickly to that kind of headline because even a limited escalation can disrupt shipping, insurance costs and production in a region that supplies a large share of the world’s oil.

Attacks in Saudi Arabia and Hormuz shipping risks

Markets were also reacting to attacks claimed by Iran-aligned Houthi forces on two airports in Saudi Arabia. Just Security, citing Wall Street Journal reporting and Saudi aviation authorities, said the attacks killed three people and wounded 36 others, damaging facilities in Riyadh and in Abha near the Yemen border. The New York Times also reported fresh blasts in Riyadh on Thursday, though their source remained unclear, according to Barron’s.

Shipping through the Strait of Hormuz added another layer of risk. Analytics firm Kpler data cited by the Malay Mail said only seven commodity vessels passed through the strait on Tuesday, the lowest count since late July, after attacks in the waterway reached their highest level in weeks. Reduced traffic through Hormuz matters because the narrow passage is one of the most important chokepoints in global energy trade.

• Brent crude: above $105 a barrel, up roughly 5 percent Thursday
• WTI crude: near $93 a barrel, also up roughly 5 percent
• Key risks: possible US-Iran escalation, Houthi attacks, Hormuz shipping delays
• US factor: Hurricane Isaias forcing Gulf platform evacuations and production cuts

Hurricane Isaias adds a US supply squeeze

The oil rally was not driven by geopolitics alone. Hurricane Isaias, the first Atlantic hurricane of the 2026 season, is heading toward the northern Gulf Coast, and energy companies have begun curbing offshore production and evacuating personnel, according to reporting by Barron’s and the Malay Mail. Shell and Chevron were among the operators pulling workers from platforms ahead of the storm’s expected landfall.

When offshore platforms shut in production, the effect is usually temporary, but in a market already nervous about supply, even short disruptions can amplify price moves. Refiners along the Gulf Coast also face possible operational issues if storm surge or power outages affect facilities after landfall.

What higher crude means for US households

Energy analysts say sustained crude prices above $100 tend to show up quickly in gasoline and diesel costs. The New York Post reported Thursday that national average gasoline prices have remained above $4 a gallon during the conflict, with diesel above $6 a gallon, costs that feed into food and goods prices because diesel powers much of the freight network. Those figures reflect the newspaper’s market reporting and may vary by region.

Higher oil also complicates the inflation picture for the Federal Reserve. Investors on Thursday pushed the 10-year Treasury yield toward 5.3 percent, according to multiple market reports, as traders weighed the risk that expensive energy could keep inflation elevated and increase pressure for further interest-rate hikes.

Markets watch for official decisions

For now, traders are trading headlines in a market with little spare cushion. The International Energy Agency agreed earlier this week to speed up a planned release of oil stocks and prioritize diesel in a bid to curb record fuel prices, according to reporting cited by the Malay Mail. Whether that step, combined with any diplomatic movement, can calm prices will depend heavily on what happens next in the Gulf and in Washington.

Radiosea will update this story as official statements from the White House, the Pentagon and energy agencies clarify whether military operations, shipping conditions or storm shutdowns change the supply outlook.