Oil Prices Surge Over $100 Per Barrel as Iran Increases Energy Attacks

Oil prices surged above $100 a barrel on Thursday following a sharp escalation of attacks on shipping vessels and energy infrastructure in Gulf waters, raising concerns about global supply and inflation.

Brent crude futures jumped 9.2 per cent to $100.37 a barrel, building on an overnight gain of over four per cent. US crude futures rose 8.1 per cent to $94.26 a barrel, reflecting rising geopolitical tensions and market jitters.

The spike comes after at least six ships were attacked in the past 24 hours, including two fuel tankers in Iraqi waters. Security officials said explosive-laden Iranian boats were responsible, while an Iraqi official told state media that the country’s oil ports had “completely stopped operations.”

In response to the heightened risk to maritime energy supplies, Oman evacuated all vessels from its key oil export terminal at Mina Al Fahal as a precautionary measure.

Iran has increased attacks on merchant ships in the Strait of Hormuz, with at least 16 vessels struck since fighting began. Tehran warned that oil prices could surge to $200 per barrel if the attacks continue.

Investors have shown little relief from the International Energy Agency’s plan to release 400 million barrels from strategic reserves, the largest release in its history. As part of this, the United States announced it would release 172 million barrels starting next week.

Analysts said the move may provide temporary relief but may not be enough to offset supply disruptions in the volatile Gulf region.

The surge in oil prices threatens to stoke global inflation further and could push borrowing costs higher as economies worldwide grapple with energy supply uncertainties. Market observers are closely monitoring the situation, warning that continued attacks could create a prolonged energy crisis with ripple effects across global markets.