# Oil prices surge on worries of shipping attacks and Gulf of Mexico hurricane

By Laurence Booth — 2026-10-08

With the price of Brent crude oil increasing by about five per cent amid escalating conflict in the Middle East and a hurricane impacting oil producers in the Gulf of Mexico, Laurence Booth, global head of markets at CMC Markets, has stated that a short-lived jump in oil caused by precautionary shutdowns could unwind relatively quickly.

He said: “Brent moving back above $100 is not simply a story about how much oil is being produced. The market is also repricing the risk and cost of getting those barrels to where they need to go.

“Repeated attacks on tankers around the Strait of Hormuz are keeping freight and insurance costs high, and every new security headline raises the risk that shipping becomes more difficult or expensive.

“The hurricane is a slightly different risk, with around a quarter of Gulf offshore oil production currently shut in. Much of that is precautionary and could return relatively quickly if facilities escape damage.

“The more important question is what happens when Hurricane Isaias reaches the coast and whether refineries, ports or other energy infrastructure are affected. That could turn a temporary production interruption into a more persistent problem for fuel supplies.

“That matters particularly, especially for bond markets, where a short-lived jump in oil caused largely by precautionary shutdowns could unwind relatively quickly. Continued disruption to shipping or damage to energy infrastructure would keep transport and fuel costs higher for longer, making it much harder for investors to dismiss the move as a temporary inflation shock.”

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