Intensification began once again as the storm retreated toward Bermuda, and Nicole reached its peak intensity early on October 13 as a Category 4 hurricane with 140 mph (230 km/h) winds.

The storm's approach and eventual impact on Bermuda forced schools, businesses, and government offices to close, while flight, bus, and ferry services were interrupted.

As a result, the NHC classified the system as Tropical Storm Nicole at 15:00 UTC, while it was located about 525 mi (845 km) northeast of San Juan, Puerto Rico.

[3][4] Nicole's cloud pattern gradually improved on October 5, partially shielded from the effects of wind shear by an upper-level low situated atop the tropical storm.

[7] A period of rapid intensification brought Nicole to its initial peak intensity as a Category 2 hurricane early on October 7, with sustained winds of 105 mph (169 km/h) and a minimum pressure of 968 mbar (28.6 inHg).

[9] An approaching trough eroded the ridge to the north, leaving the hurricane in an area of very weak steering currents;[10] consequently, its forward movement slowed to nearly stationary.

[12] A new blocking high pressure area began forming to the north, driving Nicole slowly toward the south as the storm's convective pattern continued to deteriorate.

[14] However, later that day, unusually warm sea surface temperatures enabled a "tremendous burst of deep convection" close to the center, and Nicole began to reintensify.

[19] The storm remained disorganized for the next day or so, until several bands of convection began to wrap around a ragged eye feature in response to abating wind shear.

[22] The storm underwent another period of rapid intensification, and early on October 13, reached its peak intensity as a Category 4 hurricane with winds of 140 mph (230 km/h) and a minimum pressure of 950 mbar (28 inHg).

[24] While passing the islands, the storm's inner core lost some of its structure, and the eye as viewed from radar was tilted to the southwest of the central clearing displayed on satellite.

[25] At 09:00 UTC on October 14, southwesterly wind shear reduced the system to Category 1 status, although swells from Nicole affected Bermuda and portions of the U.S. east coast and Atlantic Canada.

[28] Its wind field started to expand drastically, and Nicole finally transitioned into an extratropical cyclone on October 18, ending its nearly 2-week journey across the Atlantic basin.

[39] With adverse weather conditions expected to impact a crucial NASA rocket tracking site in Bermuda, the launch of an International Space Station resupply spacecraft from Virginia's Wallops Flight Facility was postponed.

[45] Service was predominately restored within a few days, though isolated outages reappeared well after the storm's passage, when salt deposits began disrupting the electric power distribution system.

[50][51] An unusually high number of blackpoll warblers were spotted in Bermuda after Hurricane Nicole disrupted their transoceanic migration, forcing them to seek shelter.

[55] Along the Florida coastline, hundreds of baby sea turtles were washed back ashore; roughly 500 were rescued by the Volusia Marine Science Center, and 75 by the Brevard Zoo.