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Oil Surges Above $100 as Attacks on Gulf Ships Escalate Supply Crisis

Oil Surges Above $100 as Attacks on Gulf Ships Escalate Supply Crisis
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Oil surged back above $100 a barrel on Thursday as at least half a dozen more merchant ships were hit in Gulf waters, expanding a campaign of attacks that has disrupted one of the world’s most important energy arteries and rattled global markets bbc +1. Brent crude futures rose about 9% to $100.37, while shipping firms halted or diverted traffic and some Iraqi oil terminals temporarily shut operations bbc +1.

The latest strikes came overnight in the northern Gulf and the Strait of Hormuz, where explosive-laden boats and projectiles hit fuel tankers and cargo vessels, killing at least one seafarer and setting multiple ships ablaze aljazeera +1. Since U.S. and Israeli forces launched wide-ranging attacks on Iran on 28 February, at least 14–16 merchant vessels have been struck in Gulf waters, according to tallies from maritime agencies and naval authorities bbc.

How Ship Attacks Turned a Regional War into an Energy Shock

Iran’s Revolutionary Guard Corps has threatened that any ship attempting to transit the Strait of Hormuz could be targeted, effectively weaponising a narrow waterway that normally carries roughly one-fifth of global oil supplies and significant volumes of liquefied natural gas bbc +1. In recent days, tankers flagged to Thailand, the Marshall Islands and other states have been hit by drones, rockets or explosive boats in or near the strait, forcing emergency evacuations and leaving burning hulks adrift bbc +1.

The violence has upended commercial calculus in the region. Many major shipowners and charterers have stopped booking voyages through Hormuz, while container giants and tanker operators have suspended or rerouted services nytimes. Marine war-risk insurers have cancelled coverage for Gulf transits, pushing benchmark rates for supertankers on key Middle East–Asia routes to record levels of more than $420,000 a day and stranding dozens of vessels laden with millions of barrels of crude reuters +1. “The market remains very concerned in terms of what’s going on in the Strait of Hormuz,” said Rodrigo Catril, a senior strategist at National Australia Bank japantimes.

Emergency Oil Releases and Market Jitters

Energy-importing nations have moved to blunt the supply shock. Members of the International Energy Agency agreed unanimously this week to release a record 400 million barrels of crude from emergency reserves, including 172 million barrels from the U.S. Strategic Petroleum Reserve, in an attempt to offset what officials called an “effective closure” of the Gulf shipping corridor al-monitor +1. Iran’s military, meanwhile, warned that prices could yet reach $200 a barrel if the conflict continues, underscoring the risk of further escalation moderndiplomacy.

Financial markets signalled mounting anxiety. Asian equities slid on Thursday, with the MSCI Asia-Pacific ex-Japan index down around 1.5% and Japan’s Nikkei off about 1.4%, while U.S. and European stock futures also fell japantimes. Government bond yields ticked higher as investors trimmed expectations for near-term interest-rate cuts, and currencies of major energy importers weakened against the dollar japantimes +1. Analysts warned that a sustained disruption of Gulf exports could drive a fresh wave of inflation and raise the risk of recession in key economies click2houston.

The Bigger Picture

With at least 15 ships damaged in less than two weeks and both Iran and its adversaries signalling readiness for a protracted confrontation, the Gulf has shifted from a regional battleground to a potential trigger point for a broader economic shock bbc +1. How long oil stays near or above $100 will depend on whether naval protection, emergency stock releases and diplomatic pressure can reopen Hormuz to safe passage—or whether further attacks deepen a crisis that energy experts say the global economy is poorly positioned to absorb nytimes +1.