Oil prices rose sharply in Asian trade on Thursday, rising back above the coveted $100/barrel level amid increasing signs of energy market disruptions due to the U.S.-Israel war with Iran.
Brent oil futures jumped over 9% to $100.25/barrel by 22:52 ET (02:52 GMT), while West Texas Intermediate crude futures rose 8.8% to $93.67/barrel.
Media reports showed two international oil tankers were attacked in the northern Persian gulf near Iraq and Kuwait. Footage of the event, shared online, showed the tankers engulfed in flames, with Iraqi channels attributing the strike to Iran.
Separately, Bloomberg said Oman has evacuated all vessels from a key oil export terminal at Mina Al Fahal as a precautionary measure, following a wave of attacks on ships in the region.
The developments showed that the Iran conflict was now spilling out beyond just the Strait of Hormuz, as the war entered its thirteenth consecutive day on Thursday.
Attacks on oil tankers and port closures spurred heightened concerns over supply disruptions stemming from the war, especially as Iran warned that no crude will pass through the Strait of Hormuz, a key shipping lane.
The country was seen blocking the passage– which accounts for about 20% of global oil supplies– earlier this week.
Still, oil was kept off its weekly highs as several countries stepped in to offset potential supply shocks. Reports showed the International Energy Agency preparing to release a record 400 million barrels of oil from its strategic reserves this week.
U.S. President Donald Trump also said on Wednesday the country will release 172 million barrels of oil from the Strategic Petroleum Reserve to help limit the energy shock from the Iran war.
The Iran conflict showed few signs of de-escalation, despite repeated claims from U.S. officials this week that the war was close to ending.
Oil prices had surged as high as nearly $120/barrel earlier this week.
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