Oil tops $105 as Atlantic hurricane hits production

By the Editorial Team · Friday, October 9, 2026

Oil companies in the Gulf of Mexico, including Shell and BP, have shut down production platforms ahead of Hurricane Isaias, causing oil prices to rise sharply, with Brent crude briefly surpassing $105 per barrel. This disruption, combined with escalating maritime tensions involving Iran, is exacerbating supply concerns at a critical time for global energy markets, leading to higher costs across sectors such as transportation and refining.

Oil prices surged on Friday as operators in the Gulf of Mexico began shutting down production platforms ahead of Hurricane Isaias, the first named storm of the Atlantic hurricane season. The approaching hurricane prompted major energy companies including Shell, BP, Chevron, and Harbour Energy to scale back operations to protect personnel and infrastructure.

Brent crude, the international benchmark, briefly climbed more than 5 percent to $105.50 per barrel before easing to $104.28, marking a 4.1 percent gain. Meanwhile, West Texas Intermediate (WTI), the U.S. crude benchmark, rose 3.6 percent to $91.49 a barrel. The price increases followed reports that significant portions of Gulf production were offline due to the storm’s approach.

Isaias is forecast to make landfall east of New Orleans early Saturday, with the Gulf Coast region representing more than half of the United States’ crude oil refining capacity. According to data from the Minerals Management Service, about 25 percent of U.S. Gulf oil output and 16 percent of natural gas production have been temporarily suspended.

Robert Yawger, director of energy futures at Mizuho Securities, described the hurricane as potentially “a gigantic event,” noting it is occurring at the “worst time” in 25 years for the oil market. Production in the Gulf had been nearing pre-conflict levels in September despite ongoing geopolitical tensions in the region.

In addition to weather-related supply disruptions, concerns remain over escalating maritime attacks linked to Iran. Over the past week, at least seven tanker incidents have been reported, according to the shipping intelligence firm Marisks. Saul Kavonic, head of energy at MST Marquee, said the frequency of Iranian attacks is at its highest since the conflict began, contributing to elevated oil prices due to constrained flows and rising logistics costs.

On the diplomatic front, U.S. President Donald Trump announced that there would be no military action against Iran before the November midterm elections, citing ongoing constructive talks between Washington and Tehran. Iran’s foreign minister, Abbas Araghchi, indicated that the regime is currently reviewing the U.S. response to its proposal to reopen the Strait of Hormuz within a week, according to the Tasnim news agency.

The rise in oil prices is having immediate economic effects beyond the energy sector. In the United Kingdom, Prime Minister Andy Burnham addressed concerns about increasing petrol costs, attributing price hikes to global developments. As a practical response, he highlighted a new Google Maps feature that helps drivers locate the least expensive fuel stations.

The airline industry is also feeling the impact, with jet fuel costs reportedly 50 percent higher than before the conflict intensified. Michael O’Leary, chief executive of Ryanair, stated that these elevated fuel prices are likely to persist for the next 12 to 18 months, posing ongoing challenges for carriers worldwide.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.