Oil prices surge above $100 as Gulf attacks disrupt shipping; global reserves set for release

Global oil markets faced fresh turbulence as Brent crude prices climbed above $100 per barrel again. The surge followed a series of attacks on commercial vessels in the Gulf region, which intensified fears of supply disruptions. Rising geopolitical tensions around the Strait of Hormuz pushed energy markets into renewed uncertainty.

Brent crude, the global oil benchmark, moved past the $100 mark early Thursday. The price jump came only days after crude briefly approached $120 per barrel. Meanwhile, the US benchmark crude price climbed close to $95 per barrel.

The sharp increase reflected growing concerns about shipping safety in the Gulf. Iranian forces targeted multiple vessels operating near the Strait of Hormuz, one of the world’s most important maritime routes. This narrow waterway connects the Persian Gulf to global markets and carries a major share of the world’s oil shipments.

As tensions escalated, several incidents unfolded across the region. Reports indicated that two foreign oil tankers came under attack near Iraq’s port of al-Faw. Shortly afterward, another incident struck a Thai cargo vessel navigating the Strait of Hormuz.

In addition, drones targeted fuel storage tanks at the port of Salalah in Oman. Maritime security companies also reported projectile strikes on three vessels in Gulf waters. These developments increased alarm among shipping operators and energy traders.

At the same time, regional defence forces continued to respond. Air defence systems in Kuwait, Qatar, the United Arab Emirates and Saudi Arabia intercepted several Iranian missiles and drones. Despite these interceptions, repeated attacks added pressure to global energy markets.

Analysts now count at least 16 ships struck during the ongoing maritime conflict. The incidents occur amid the wider confrontation involving Iran, Israel and the United States. The continued instability has strengthened fears that energy shipments could face prolonged disruption.

Iranian officials also issued warnings about possible price spikes. Authorities suggested that oil prices could even rise toward $200 per barrel if the confrontation expanded and shipping routes closed further.

In response to the volatile market, the International Energy Agency announced an unprecedented step. The agency decided to release 400 million barrels of oil from emergency reserves held by its member countries. The move aims to stabilise global markets and ease supply pressure.

The International Energy Agency includes 32 member nations. These countries collectively supported the emergency release. The United States committed the largest share of the supply, contributing about 172 million barrels from its strategic reserves.

This release marks the largest coordinated stockpile draw in the agency’s history. By comparison, the agency released about 182.7 million barrels in 2022 after Russia launched its invasion of Ukraine.

However, analysts say the emergency supply may offer only temporary relief. The planned release equals roughly 20 days of supply lost if major disruptions occur in the Strait of Hormuz. In addition, the oil will take weeks or even months to reach global markets.

IEA members collectively hold more than 1.2 billion barrels in emergency reserves. Governments also require industry operators to maintain another 600 million barrels in strategic stockpiles.

Major energy-importing nations have welcomed the move. India, which relies heavily on Middle Eastern oil supplies, supported the coordinated release. Officials from the Ministry of Petroleum and Natural Gas said the country stands ready to take necessary steps to maintain market stability.

Japan also announced early action. Prime Minister Sanae Takaichi said Tokyo would release about 80 million barrels from national and private reserves. The step aims to stabilise global supply even before the full international coordination begins.

For now, energy markets remain highly sensitive to developments in the Gulf region. Continued attacks on shipping routes and rising geopolitical tensions will likely keep oil prices volatile in the coming weeks.