Oil prices climbed back above $100 per barrel Thursday after attacks on commercial shipping in the Persian Gulf. This photo, taken March 10, shows a motorist refueling a car in London. Photo by Neil Hall/EPA
Oil prices climbed back above $100 per barrel Thursday after attacks on commercial shipping in the Persian Gulf raised fears of further disruptions to global energy supplies, despite a record release of emergency reserves by major consuming nations.
Brent crude, the international benchmark, surged more than 9% to about $100 a barrel as escalating Middle East tensions rattled energy markets, while U.S. benchmark West Texas Intermediate crude rose into the mid-$90s range.
The spike followed reports of additional attacks on vessels in the Gulf region, part of a widening Iran-linked campaign targeting shipping and energy infrastructure after the United States and Israel launched their airborne strikes against Iranian targets Feb. 28.
Three ships were hit by unknown projectiles in the Persian Gulf early Thursday, according to a British maritime agency.
The United Kingdom Maritime Trade Operations said one container ship was struck off the coast of Jebel Ali, United Arab Emirates, causing a small fire onboard. Two tankers were also hit near Al Basrah, Iraq, and were set ablaze. UKMTO said all crew members were reported safe in the incidents.
The attacks brought the total number of vessels targeted to six over the past two days, intensifying concerns over the security of the Strait of Hormuz, a critical maritime chokepoint through which about one-fifth of the world’s crude oil and liquefied natural gas supply passes.
Iran has sought to pressure global energy markets following U.S. and Israeli strikes on Iranian targets nearly two weeks ago. Iranian officials and military commanders have warned that shipping through the strait could be disrupted, and maritime traffic through the waterway has already fallen sharply amid the escalating conflict.
In an attempt to calm markets, the International Energy Agency announced that its member countries will release a combined 400 million barrels of oil from emergency reserves — the largest coordinated stock drawdown in the organization’s history.
“The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA Member countries have responded with an emergency collective action of unprecedented size,” IEA Executive Director Fatih Birol said in a statement.
The current crisis has already caused sharp volatility in global energy markets, with Brent crude prices spiking to nearly $120 a barrel on Sunday before retreating in subsequent days.
