Oil Prices Surge Toward $100/Barrel After Tanker Attacks in Iraqi Waters

Oil prices climbed sharply during Asian trading on Thursday, pushing close to the psychologically significant $100 per barrel mark following reports of two tanker attacks in Iraqi waters near the northern Persian Gulf. The incidents intensified already heightened fears over potential supply disruptions tied to the ongoing U.S.-Israel conflict with Iran, now in its thirteenth consecutive day with no clear signs of resolution.

Brent crude futures surged more than 7% at the open, briefly reaching $99.54 per barrel before settling around $98.23 per barrel. West Texas Intermediate crude also jumped nearly 7%, trading at $92.04 per barrel. Footage circulating online showed the tankers engulfed in flames, with Iraqi media attributing the strikes to Iran.

Market anxiety deepened as Iran reiterated warnings that crude shipments through the Strait of Hormuz — a critical global shipping lane responsible for roughly 20% of the world's oil supply — would be blocked. Earlier in the week, Iran was already reported to be disrupting passage through the strait, raising alarm across energy markets worldwide.

Despite the spike, oil prices remained below their weekly peak of nearly $120 per barrel, partly due to emergency intervention from global energy authorities. The International Energy Agency announced plans to release a record 400 million barrels from strategic reserves, while U.S. President Donald Trump confirmed the release of 172 million barrels from the Strategic Petroleum Reserve to cushion the economic blow from the conflict.

Although U.S. officials have suggested the war could be nearing an end, concrete progress toward a ceasefire has yet to materialize, keeping crude oil markets volatile and traders on edge. Analysts warn that sustained disruptions in the Strait of Hormuz could push oil prices well past $100 per barrel in the near term.