Global energy markets faced renewed turmoil Thursday after Iran escalated attacks on shipping and oil infrastructure across the Middle East, pushing Brent crude back above $100 a barrel. The price spike came despite a historic coordinated release of emergency reserves by major consuming nations. Markets remained deeply unsettled as the scale of conflict continued to widen.
Iran struck merchant ships near the strategically vital Strait of Hormuz, which has been closed to normal traffic since February 28. Three crew members aboard the Thai-registered Mayuree Naree were reported trapped after the vessel was hit. Iraq shut down its oil export ports after nearby tankers came under fire, further tightening global supply.
Bahrain ordered residents to shelter indoors following an Iranian attack on fuel storage tanks in the Muharraq Governorate. Oman relocated vessels from its primary crude export terminal at Mina Al Fahal in response to drone strikes at another port. The coordinated nature of the strikes suggested Iran was deliberately targeting economic assets to maximize pressure on adversaries.
The IEA ordered an unprecedented release of 400 million barrels from emergency reserves held by its 32 members. The US announced plans to release 172 million barrels from its Strategic Petroleum Reserve over approximately 120 days. Energy Secretary Chris Wright accused Iran of manipulating and threatening energy security across America and its allies.
Markets remained volatile, with West Texas Intermediate climbing 8.6% to $94.75 a barrel. Japan’s Nikkei 225 dropped 1.6% and South Korea’s Kospi fell 1.2%. Deutsche Bank strategist Jim Reid cautioned that investors face the growing risk of a broader stagflationary shock if the conflict drags on.