FX.co ★ Crude Oil Gains on Renewed Supply Disruptions

Crude oil prices climbed toward $91 a barrel in a turbulent session on Thursday, driven by escalating Iranian attacks on tankers transiting the Strait of Hormuz and mounting concerns that Hurricane Isaias could disrupt US offshore production in the Gulf of Mexico.

Over the past week, nine tankers have been attacked in and around the Strait of Hormuz, threatening the fragile recovery in crude flows through this critical chokepoint. About 9.5 million barrels per day left the strait in the week ended Tuesday, roughly 30% below normal pre-war levels.

In the Gulf of Mexico, oil companies have shut in around 500,000 barrels per day—about 25% of offshore output—as Hurricane Isaias tracks toward the coasts of Alabama, Mississippi, and the Florida Panhandle.

Prices had earlier pulled back from session highs after US President Donald Trump stated that Washington would not launch attacks on Iran before the November midterm elections. That followed earlier reports suggesting Trump and his national security team had been weighing renewed strikes in the coming weeks.