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Global Oil Prices Surge Over $100 As Iran Escalates Attacks In The Gulf
Global oil prices surged past $100 per barrel on Thursday amid escalating tensions between Iran, the United States, and Israel, heightening fears of supply disruptions in the Middle East despite a record release of emergency crude reserves by the International Energy Agency (IEA).
The spike in crude comes as US and Israeli strikes in Iran entered their third week, with Tehran responding through retaliatory attacks across the Gulf region, threatening critical energy shipping routes. Brent crude rose more than nine percent to $101.59 per barrel, while West Texas Intermediate climbed close to $96. Earlier in the week, both benchmarks had surged nearly 30 percent, briefly nearing $120 per barrel. Analysts warn that ongoing hostilities could keep prices hovering between $90 and $100 for an extended period.
In an effort to stabilize global markets, the IEA announced a historic release of 400 million barrels from strategic reserves, with the United States contributing 172 million barrels. However, the move did little to calm markets as traders remained focused on the risks to Gulf energy shipments. The Strait of Hormuz, which carries roughly one-fifth of the world’s crude, has effectively been closed due to the escalating conflict.
Iran’s attacks have extended to Iraqi waters, where two oil tankers were struck, prompting Baghdad to reduce oil production. Kuwait and Saudi Arabia are also reportedly cutting output. Bahrain confirmed attacks on fuel storage facilities, and Saudi Arabia intercepted drones aimed at its Shaybah oil field. Iranian officials warned that the conflict could become a protracted war with severe global economic consequences, with the Revolutionary Guards threatening US and Israeli economic interests.
The surge in oil prices has reignited concerns over inflation and potential interest rate hikes, unsettling global stock markets. Major Asian indices, including Tokyo, Hong Kong, Shanghai, and Sydney, fell sharply, while European and US markets also retreated. The disruption of the Gulf shipping lanes could impact not only oil but also fertilizer supply chains critical for global food production. Airlines have begun adjusting operations, with Air New Zealand announcing cuts to 1,100 flights over the next two months due to rising fuel costs.
Analysts say that emergency oil releases are only a temporary measure. Stephen Innes of SPI Asset Management described it as “symbolic,” noting that the underlying risk remains while the Strait of Hormuz is threatened. Neil Wilson of Saxo Markets emphasized that market concerns focus on actual supply flows rather than existing stockpiles, estimating a loss of 200 million barrels of oil supply due to the conflict.
Despite escalating tensions, former US President Donald Trump claimed that Iran had been significantly weakened, a view contested by Israeli military officials, who assert that their campaign is ongoing.
Key Market Figures (as of 03:30 GMT):
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West Texas Intermediate: $94.72 (+8.6%)
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Brent North Sea Crude: $100.29 (+9.0%)
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Tokyo Nikkei 225: -2.1%
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Hong Kong Hang Seng: -1.2%
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Shanghai Composite: -0.6%
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Euro/Dollar: $1.1537
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Pound/Dollar: $1.3370
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Dollar/Yen: 159.03
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