Oil prices jump 4% as Iran steps up tanker attacks, hurricane threatens U.S. Gulf production

Crude oil prices rose sharply Thursday, as Iran ramped up its attacks on tankers transiting the Strait of Hormuz and Hurricane Isaias barreled through the Gulf of Mexico.

Brent crude futures, the international benchmark, gained 3.9% to $104.07 a barrel. U.S. West Texas Intermediate futures advanced 3.7% at $91.58 per barrel.

At least nine tankers have come under attack in and around Hormuz over the past week, jeopardizing the recent recovery in oil flows through the strait.

Meanwhile, Hurricane Isaias is churning through the Gulf of Mexico toward the coasts of Alabama, Mississippi and the Florida panhandle. Oil companies have shut in about 500,000 bpd or about 25% of offshore production in the Gulf in response.

President Donald Trump and his national security team have talked about possibly restarting large-scale U.S. military operations in Iran in the coming weeks, NBC News reported, citing sources. That also includes the option of strikes prior to next month's midterm elections.

Meanwhile, tensions in the Middle East have been rising with Iran-backed Houthis recently targeting airports in Saudi Arabia, while Tehran has also been attacking tankers in the Hormuz Strait.