Oil prices are back above the psychologically important $100-a-barrel level, as fresh geopolitical and weather-related risks raise concerns about global energy supplies.
Brent crude futures climbed to around $101.39 a barrel, while US West Texas Intermediate crude was around $90.05, according to Reuters.
The latest hike in oil prices comes as markets assess two separate supply risks: escalating attacks by Yemen’s Iran-backed Houthis against Saudi Arabia and a developing storm in the Gulf of Mexico that could disrupt US oil and gas production.
Saudi Arabia becomes the latest flashpoint amid high oil prices
Saudi authorities said airports in Jazan and Najran were targeted in attacks, while fighting between Saudi-backed Yemeni government forces and Houthi forces has intensified.
The renewed conflict is adding another layer of uncertainty to an already fragile Middle Eastern energy market.’
The Houthis have also claimed attacks targeting airports in Saudi Arabia, while Saudi authorities have reported interceptions of missiles. Reuters reported that the escalation is occurring alongside a major Saudi-backed offensive against Houthi forces in Yemen.
US storm threatens Gulf of Mexico production
At the same time, a storm developing in the Gulf of Mexico is creating a second supply concern.
US forecasters expect the storm to become the first Atlantic hurricane of 2026 within days. The offshore areas in its potential path account for roughly 15% of US crude production and 5% of natural gas output.
The storm could also disrupt several refineries, adding pressure to fuel markets.
Why $100 oil prices matter for India
For India, sustained crude prices above $100 could become a major economic concern.
India is heavily dependent on imported crude, meaning a prolonged oil rally can increase the country’s import bill and put pressure on the rupee, inflation and the current account balance.
It can also raise costs for airlines, transport companies, manufacturers and other businesses that rely heavily on fuel and petroleum-based inputs.
The timing is particularly important because the RBI has just raised its repo rate to 5.50%, citing growing inflation risks. Higher crude prices could make the central bank’s inflation challenge even more difficult.
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What happens next?
Analysts quoted by Reuters expect crude prices to remain around the $100 level unless there is meaningful de-escalation in the geopolitical situation.
For markets, the biggest question is whether the latest attacks remain contained or develop into a wider disruption of Middle Eastern energy supplies.
For India, every additional rise in crude prices could mean fresh pressure on inflation, the rupee and interest rates.
