Arthur gradually intensified while tracking towards the Outer Banks of North Carolina, attaining its peak intensity with maximum 1-minute sustained winds of 60 mph (97 km/h) and a minimum central pressure of 990 mbar (29 inHg) on May 19, before skirting the region and becoming an extratropical cyclone.

In its formative stages, the storm brought severe weather, including hail and high winds, to southern Florida.

[1] Convection began to slowly build around the center by early May 16, and Doppler weather radar showed a well-defined low-level circulation (LLC) had formed displaced just slightly east of the main thunderstorms.

[1][4] Based on this, the NHC upgraded the low to Tropical Depression One at 18:00 UTC on May 16 while located about 125 miles (201 km) east of Melbourne, Florida.

[1] The system was considered tropical instead of subtropical in nature due to persisting central deep convection and a tight radius of maximum winds.

[5] Based on reports from a Hurricane Hunter aircraft of tropical-storm force winds, the NHC upgraded the system to Tropical Storm Arthur at 00:00 UTC on May 17.

[7] However, a mid-level trough centered over the United States caused Arthur to slowly be pushed northeastwards over a section of relatively cool waters and as a result most of the storm's convection became limited to the east of the circulation.

[10][11] Wind shear increased as Arthur neared North Carolina, which began separating the storm's convection from the LLC.

[1] Six hours later, the storm completed its transition to an extratropical cyclone as a trailing warm front developed behind the now almost fully exposed LLC.

[1] Gusty winds damaged tents and other temporary shelters across the island, and heavy rainfall caused some minimal flooding.

[17] In addition, rainbands from the precursor disturbance to Arthur caused heavy rain and severe thunderstorms in South Florida.

[31] In anticipation of inclement weather conditions associated with Tropical Storm Arthur, Dare County Public Works suspended residential and commercial trash collection in Colington Island, Kitty Hawk, Buxton, Frisco, and Hatteras.

Commercial collection was also suspended for Manteo, Wanchese, Manns Harbor, Stumpy Point, Rodanthe, Waves, Salvo, and Avon.

[33] SpaceX was also forced to delay the launch of several Starlink internet satellites due to adverse weather from Arthur affecting the recovery fleet.

[39] Purple and red flags were raised along the coasts of Georgia and South Carolina to alert the public for rip currents.