Oil prices jumped sharply on Thursday, with Brent crude surpassing $100 a barrel, as attacks on ships and the closure of oil terminals in the Gulf stoked fears of supply disruptions.
Brent crude futures rose 9% to $100.22 a barrel, while U.S. crude climbed 9% to $95.41 a barrel.
Two fuel tankers in Iraqi waters were hit by explosive-laden Iranian boats, according to Iraqi security officials, and Iraq’s oil ports have reportedly halted operations. Oman evacuated vessels from its key Mina Al Fahal oil export terminal as a precaution. Analysts reported multiple Iraqi crude tankers burning in the Persian Gulf, leaking oil into the water.
The surge follows a massive release of oil from global reserves announced by the International Energy Agency (IEA), which plans to release 400 million barrels, the largest such move in history. The U.S. will release 172 million barrels starting next week. However, investors saw little relief from the move amid ongoing regional tensions.
Iran has warned the world to prepare for oil prices at $200 a barrel, following attacks on merchant ships in the Strait of Hormuz. Market analysts view the latest strikes as a direct response to the IEA’s release of strategic reserves.
