USO, UCO Jump, Brent Oil Tops $105: Reports Of ‘Massive Bombing’ Of Iranian Infrastructure Raise Fresh Supply Disruptions Fears

• According to an Axios report, the U.S. is preparing for a possible resumption of major combat operations against Iran.
• Trump reportedly said that he was no longer keen on reaching a deal with Iran.
• Hurricane Isaias has forced energy companies to suspend operations in the Gulf of Mexico.

Oil-linked exchange-traded funds United States Oil Fund (USO) and ProShares Ultra Bloomberg Crude Oil (UCO) saw sharp gains in pre-market trading on Thursday as reports of possible large-scale U.S. military strikes against Iran and storm-related production shutdowns in the Gulf of Mexico fueled fresh concerns about global supplies.

Brent crude futures for December 2026 deliveries rose 5% to more than $105 per barrel, the highest level in two weeks. West Texas Intermediate (WTI) contracts expiring in November 2026 gained about 4.9% to $92.57 per barrel.

U.S. Reportedly Preparing For Strikes On Iranian Energy Infra

According to an Axios report, the Pentagon instructed U.S. Central Command to complete preparations for a possible resumption of major combat operations against Iran.

The potential offensive could include “massive bombing of Iranian energy, infrastructure and nuclear targets,” Axios said, citing sources. However, President Donald Trump has not made a final decision on whether or when to launch the strikes.

Separately, Trump reportedly said that he was no longer keen on reaching a deal with Iran, adding to concerns about further escalation.

“I think the deal isn’t really something that I want to do, but they’re willing to offer us anything to stop,” Trump said.

Hurricane Isaias Forces Suspension Of Production

Adding to supply concerns, Hurricane Isaias has forced energy companies to suspend operations in the Gulf of Mexico. According to reports, about 25% of the region’s oil production, equivalent to about 512,000 barrels per day, and more than 16% of natural gas output had been shut down as a precaution.

Chris Beauchamp, Chief Market Analyst at IG Group, told Reuters that the approaching U.S. storm and reports of potential renewed military operations against Iran were helping keep Brent prices above $100 per barrel.

“The US is probably attempting to pile on the pressure in ​a bid to bring Iran to the table, but we can't discount the possibility of a new round of strikes. Investors certainly ​don't seem to be taking any chances,” Beauchamp added.

Meanwhile, shares of energy giants Exxon (XOM) and Chevron (CVX) gained around 1.5% each in pre-market trading.

Retail’s Take On USO, UCO

USO was up 4%, while UCO gained 3.8%, with both funds climbing to their highest levels in more than a month.

Retail sentiment on Stocktwits diverged between the two funds, leaning ‘bearish’ on USO and ‘bullish’ on UCO.

USO has gained around 108% so far in 2026, while UCO has ripped more than 183%.

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