Oil Surges Above $100 as Iran Intensifies Gulf Shipping Attacks

Oil prices climbed back above $100 a barrel on Thursday, March 12, 2026, as Iran escalated attacks on commercial shipping in the Persian Gulf, fueling fears of significant disruptions to global energy supplies. Despite a record release of emergency oil reserves by major consuming nations, tensions in the Middle East rattled energy markets.

Escalating Attacks and Market Reaction

Brent crude, the international benchmark, surged more than 9% to approximately $100.22 a barrel, while U.S. West Texas Intermediate (WTI) crude rose to $95.41 a barrel. These price increases follow reports of additional attacks on vessels in the Gulf region, part of a broader campaign linked to Iran targeting shipping and energy infrastructure following strikes against Iranian targets in February.

Early Thursday, Iraqi security officials reported that two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats. An Iraqi official stated that the country’s oil ports had “completely stopped operations.” Multiple tankers loaded with Iraqi crude are reported to be burning in the Persian Gulf off the coast of Basra, leaking burning oil into the water.

Oman has evacuated all vessels from its key oil export terminal at Mina Al Fahal as a precautionary measure. The United Kingdom Maritime Trade Operations (UKMTO) reported one container ship struck off the coast of Jebel Ali, United Arab Emirates, with a small fire onboard. Two tankers were also hit near Al Basrah, Iraq, and were set ablaze, though all crew members were reported safe.

Strategic Reserve Release Fails to Calm Markets

The International Energy Agency (IEA) announced a plan to release 400 million barrels of oil from its reserves, the largest such move in its history, with the U.S. Contributing 172 million barrels. However, investors showed little comfort from this measure, suggesting a lack of confidence in its ability to offset the potential supply disruptions.

Strait of Hormuz Remains a Critical Chokepoint

The attacks have intensified concerns over the security of the Strait of Hormuz, a critical maritime chokepoint through which approximately one-fifth of the world’s crude oil and liquefied natural gas supply passes. The waterway is currently effectively closed, prompting governments to perform on plans for its speedy reopening once the conflict subsides.

Global Market Impact

The surge in oil prices is expected to fuel inflation and push borrowing costs higher worldwide. Asian shares broadly fell on Thursday, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.6% and the Nikkei dropping 1.5%. European markets also experienced declines, with EUROSTOXX 50 futures down 1% and DAX futures losing 1.1%. S&P 500 and Nasdaq futures both fell 1%.

Looking Ahead

The situation remains highly volatile, and further escalation could lead to even more significant disruptions in global energy markets. The effectiveness of the IEA’s strategic reserve release and diplomatic efforts to de-escalate the conflict will be crucial in determining the future trajectory of oil prices and the stability of the global economy.