Oil prices surged past $100 per barrel on Thursday, as a wave of Iranian retaliatory strikes on energy infrastructure across the Middle East overshadowed a historic coordinated release of emergency oil reserves by Western nations.
The escalation follows former President Donald Trump’s pledge to “finish the job” and intensify the US-Israel military campaign against Tehran.
In response, Iran has broadened its offensive to target economic and energy assets throughout the region.
In a significant escalation for global trade, several merchant vessels were struck in and around the Strait of Hormuz, a critical chokepoint through which a fifth of the world’s oil passes.
The owner of the Thai-flagged tanker Mayuree Naree confirmed that three crew members are believed to be trapped onboard following an attack.
Elsewhere, Iraq was forced to suspend all operations at its oil ports after two nearby tankers came under fire.
In Bahrain, authorities urged residents in the Muharraq Governorate to remain indoors following an Iranian strike on fuel storage tanks.
According to a report from Bloomberg citing port agents, Oman has evacuated all vessels from its primary oil terminal at Mina Al Fahal, one of the last remaining operational export hubs in the region, after drone strikes targeted another facility in the sultanate.
Brent crude, the international benchmark, rallied 9% to settle at $100.29 per barrel on Thursday. The gains persisted despite urgent efforts by global powers to contain fears of a prolonged supply disruption.
The price had briefly touched $100 earlier in the week for the first time in four years, surging as much as 29% before retreating following ambiguous remarks from Trump regarding the scope of the conflict.
In an attempt to stabilise markets, the International Energy Agency (IEA) on Wednesday orchestrated the largest coordinated release of government-held oil reserves in history.
The agency’s 32-member nations unanimously agreed to inject 400 million barrels of emergency crude onto the market.
However, the impact of the move was quickly eclipsed by the deteriorating security situation in the Gulf and mounting evidence that Tehran is deliberately targeting energy infrastructure.
As prices resumed their upward trajectory, Iran’s military command issued a stark warning to the United States. “Get ready for oil to be $200 a barrel,” a spokesperson said.
“The price of oil depends on regional security, which you have destabilized.”
In the United States, West Texas Intermediate (WTI) crude also climbed back toward the $100 mark, rising 8.6% to $94.75 per barrel. The renewed volatility weighed heavily on Asian equity markets, with Japan’s Nikkei 225 falling 1.6% and South Korea’s Kospi dropping 1.2%.
The Strait of Hormuz has been effectively closed to normal traffic since the conflict escalated on February 28.
Saudi Arabia’s state oil company, Aramco, has warned of “catastrophic consequences” for the global economy if the waterway remains blocked.
As part of the IEA’s intervention, the United States announced it would release 172 million barrels from its Strategic Petroleum Reserve.
US Energy Secretary Chris Wright confirmed the release will begin next week and take approximately 120 days to complete.
In a statement, Wright accused Iran of having “manipulated and threatened the energy security of America and its allies.”
Earlier in the week, Trump signalled his intention to tap the reserve as part of broader efforts to shield the US economy from soaring fuel costs.
Reuters contributed reporting.
