Global oil markets moved higher after reports of attacks on fuel tankers in Iraqi waters added another layer of uncertainty to energy supplies already strained by the ongoing conflict involving the United States, Israel and Iran.
According to a Reuters report, oil prices climbed after Iraqi officials said two foreign tankers carrying Iraqi fuel oil were struck by explosive-laden boats, triggering fires and raising concerns about the safety of shipping routes in the region.
The latest incident comes as West Asia conflict continues to disrupt energy flows and intensify volatility across global oil markets.
Oil Prices Climb As Supply Risks Grow
Benchmark crude prices rose sharply following the reports of tanker attacks.
Brent crude futures increased by $5.69, or 6.19 per cent, to $97.67 per barrel, while US West Texas Intermediate (WTI) crude rose $5.11, or 5.86 per cent, to $92.36, in early Asian trading.
The gains reflect mounting concerns that the conflict in West Asia could disrupt supply chains in one of the world’s most critical energy-producing regions.
Energy traders are closely monitoring developments in the Persian Gulf, where key export routes and infrastructure remain vulnerable to escalation.
Tankers Attacked In Iraqi Territorial Waters
The price surge followed confirmation from Iraqi officials that two vessels transporting Iraqi fuel oil had been targeted.
Farhan al‑Fartousi, director general of Iraq’s General Company for Ports, told Reuters that two foreign tankers were hit by unidentified attackers while operating in Iraqi territorial waters. The strikes caused both vessels to catch fire.
Initial findings from Iraqi security officials suggested that explosive‑laden boats launched from Iran were responsible for the attacks, though investigations were still ongoing.
The incident marks one of the most direct threats to maritime oil shipments in the region since the latest phase of the conflict began.
Conflict Intensifies Pressure On Energy Markets
The tanker attacks come amid broader geopolitical tensions triggered by the US‑Israeli war on Iran, which has already disrupted energy flows across West Asia.
The region plays a central role in the global oil system, and any threat to shipping routes quickly reverberates through commodity markets.
Analysts say that disruptions to tanker movements and oil production facilities could tighten global supply conditions if the conflict continues.
Tony Sycamore, a market analyst at IG, said the latest escalation appeared to be a strong response to efforts by international authorities to stabilise oil prices.
“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” Sycamore told Reuters.
Strategic Reserve Release Attempts To Calm Markets
In an effort to contain the surge in oil prices, the International Energy Agency (IEA) has agreed to release a record volume of crude from global strategic reserves.
The agency announced plans to release around 400 million barrels of oil to stabilise markets facing supply shocks linked to the Middle East conflict.
The United States is contributing the largest portion of the release, providing about 172 million barrels from its Strategic Petroleum Reserve, according to Reuters.
The move is intended to increase supply temporarily and prevent oil prices from spiralling further.
However, analysts caution that reserve releases may only offer short‑term relief if geopolitical disruptions continue.
Strait Of Hormuz Remains A Critical Flashpoint
A major concern for energy markets remains the possibility of disruptions in the Strait of Hormuz, one of the world’s most important oil transit routes.
Roughly one‑fifth of global crude oil shipments pass through the narrow maritime corridor linking the Persian Gulf to international markets.
If tensions escalate further and tanker traffic is restricted, the impact on global oil supply could be significant.
Washington Signals Close Monitoring Of Strategic Routes
Amid the growing tensions, US President Donald Trump said Washington was closely watching developments in the region’s strategic shipping routes.
Trump said the United States was in “very good shape” in its war on Iran and indicated that the administration was monitoring the straits closely.
At the same time, intelligence assessments suggest that Iran’s leadership structure remains largely intact despite the conflict.
