Global oil prices rose on Thursday as escalating tensions in the Middle East and fresh attacks on fuel tankers intensified concerns about supply disruptions linked to the conflict involving the United States, Israel and Iran.
Benchmark crude futures rallied after Iraqi officials reported that two fuel oil tankers had been struck by explosive-laden boats in Iraqi territorial waters, a development that traders fear could further destabilise shipping routes in one of the world’s most critical oil-producing regions.
Brent crude futures rose $5.69, or 6.19 percent, to $97.67 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, climbed $5.11, or 5.86 percent, to $92.36 per barrel.
The latest spike in prices underscores the fragile balance in global energy markets as geopolitical risks continue to threaten oil flows from the Gulf region.
The increasse in oil prices followed reports that two foreign tankers transporting Iraqi fuel oil were attacked by unidentified vessels in Iraqi territorial waters.
According to Farhan al-Fartousi, director-general of Iraq’s General Company for Ports, the vessels were hit on Wednesday and subsequently caught fire.
Initial investigations by Iraqi security officials suggested that explosive-laden boats originating from Iran were responsible for the strikes.
The incident represents one of the most direct threats to oil transport routes since the conflict escalated in the Gulf, raising fears of broader disruption to maritime energy shipments in the region.
Energy analysts say the attacks highlight the vulnerability of tanker traffic across the Gulf and reinforce concerns that the conflict could spread beyond airstrikes and military installations to key energy infrastructure and shipping routes.
The renewed market volatility comes just hours after the International Energy Agency (IEA) announced plans for a record emergency release of global oil stockpiles in an effort to stabilise prices.
The agency said it would coordinate the release of 400 million barrels of crude oil from strategic reserves held by member countries to counter supply shocks linked to the ongoing war.
The United States is expected to contribute the largest portion of the release; about 172 million barrels, from its Strategic Petroleum Reserve.
Despite the announcement, markets reacted cautiously as traders questioned whether the reserve release would be sufficient to offset potential disruptions in the Gulf.
Tony Sycamore, market analyst at IG, said the tanker attacks could signal a direct response from Tehran to efforts by major economies to cap oil prices.
“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” Sycamore said.
Energy markets remain highly sensitive to developments around the Strait of Hormuz, the narrow waterway connecting the Persian Gulf to global shipping routes through which roughly a fifth of the world’s oil supply passes.
Analysts warn that any disruption to tanker traffic through the strait could trigger a severe supply shock and send prices significantly higher.
According to Tina Teng, market strategist at Moomoo ANZ, the strategic reserve release may only offer temporary relief if military tensions escalate further.
“The IEA’s release of oil reserves may be only a temporary solution, as disruptions to oil shipments through the Strait of Hormuz and a major production halt in some Middle Eastern countries could cause a long-term supply crunch,” Teng said.
She added that markets are closely monitoring developments in the region for any signs of further attacks or potential blockades affecting oil transit routes.
Political rhetoric surrounding the conflict also continues to influence investor sentiment.
Donald Trump, president of the United States, said on Wednesday that Washington was in “very good shape” in its war with Iran and indicated that the U.S. would closely monitor developments around the strategic shipping lanes.
“We’re going to look very strongly at the straits,” Trump said.
However, intelligence assessments suggest that Iran’s political and military leadership remains largely intact despite ongoing military operations.
Sources familiar with U.S. intelligence estimates say there is currently no indication that the Iranian leadership is at risk of imminent collapse.
Analysts say the absence of any clear diplomatic breakthrough means oil markets may continue to face upward pressure in the coming weeks.
Tina Teng noted that the lack of de-escalation signals from the region is reinforcing bullish sentiment among traders.
“Oil prices continued to face upside pressure as there were no signs of war de-escalation in the Middle East,” she said.
