Brent crude futures gained $1.05, or 1.04%, to reach $101.63 a barrel by 0400 GMT. US West Texas Intermediate (WTI) crude rose 80 cents, or 0.89%, to $90.24 a barrel.
The gains came as the oil market confronted fresh uncertainty over supplies from two major producing regions. In the United States, forecasters said on Tuesday that a storm forming in the Gulf of Mexico was expected to strengthen into the first Atlantic hurricane of 2026 within two days, with oil and gas infrastructure potentially in its path.
The Gulf's offshore oil and gas operations are particularly important to the US energy system. Facilities in the storm's projected path account for about 15% of US crude oil production and 5% of natural gas output, raising the prospect of temporary production shutdowns if conditions deteriorate.
KCM Trade chief analyst Tim Waterer said the developing weather system represented another challenge for an already unsettled market.
"The storm is an unwelcome complication for crude, raising the prospect of production and refining disruptions at a time when the market already has enough supply-side headaches," Waterer said.
The potential disruption extends beyond offshore production. As many as six refineries could be affected by the storm, according to market assessments. Refineries located in the US Gulf states collectively represent roughly half of America's total refining capacity of about 18.2 million barrels per day.
That concentration makes the region especially important to the domestic and international fuel markets. Any significant shutdowns could tighten supplies of refined products, particularly gasoline and diesel, while also affecting demand for crude.
Signs of tighter US crude supplies have already emerged. Market sources said on Tuesday, citing data from the American Petroleum Institute, that US crude inventories declined by 2.09 million barrels during the week ended October 2.
The inventory decline provided another supportive signal for oil prices, although traders remained focused on the broader global supply picture.
"For now, the market is likely to remain nervous to any potential supply disruptions," ING commodity strategists said, warning that risks in the Middle East remain significant amid continued attacks on shipping.
At the same time, oil supply from the Middle East has shown signs of recovery, limiting the extent of the price gains. Saudi Arabia's East-West pipeline has reached throughput of 5.8 million barrels per day, Energy Minister Prince Abdulaziz bin Salman said on Tuesday.
Vitol's chief executive also offered evidence that substantial volumes of oil and petroleum products continue to leave the region. Around 12 million barrels per day of crude oil and 2 million barrels per day of refined products have been shipped from the Middle East over the past seven to 10 days, he said.
But the improvement in flows has been overshadowed by renewed security concerns.
Saudi Arabia's airports in Jazan and Najran were targeted in two attacks on Monday evening, according to the Saudi aviation authority. The incidents came as tensions between Riyadh and Yemen's Iran-backed Houthis intensified.
The attacks occurred as Saudi-backed Yemeni government forces launched a major offensive aimed at reclaiming territory from the Houthis following weeks of rebel advances. Saudi Arabia has increased airstrikes in support of the campaign, adding another layer of geopolitical risk to an already fragile regional supply environment.
For oil traders, the concern extends beyond the immediate impact of attacks on energy infrastructure. Continued violence could threaten shipping routes, disrupt the movement of crude and refined products, and force buyers to pay higher premiums for available supplies.
Mukesh Sahdev, chief oil analyst at X Analysts in Sydney, said attacks and refinery outages were likely to keep refined-product markets tight.
"Attacks and refinery outages are likely to keep the cracks elevated and scarcity will transmit to crude," Sahdev said, referring to the premium that refined petroleum products command over crude oil.
He added that crude prices were likely to remain around the $100-a-barrel mark unless there was a meaningful reduction in regional tensions.
"Without any material de-escalation emerging," crude prices could hold near $100, Sahdev said.
The geopolitical backdrop remains uncertain, particularly amid strained relations between the United States and Iran. US President Donald Trump said on Tuesday that nobody knew who was running Iran during the eight-month US-Israeli war with Iran, underscoring the continuing uncertainty surrounding Washington's relationship with Tehran.
With a potential Atlantic hurricane threatening US production and refining capacity, while attacks continue to raise concerns over Middle Eastern supplies, traders are facing a market in which relatively small disruptions could have an outsized effect on prices.
For now, the competing forces of recovering Middle Eastern exports and mounting disruption risks are keeping crude markets volatile, with investors watching both the storm's trajectory and developments across the region for clues to the next major price move.