Global oil prices surged past $100 per barrel on Thursday after escalating attacks linked to Iran disrupted key energy shipping routes in the Middle East, forcing Oman to halt operations at one of its major export terminals.
Brent crude climbed sharply in early trading after Oman ordered all oil tankers to leave the Mina Al Fahal terminal, its primary crude export facility. The port, located outside the Strait of Hormuz, has been one of the few remaining routes through which Middle Eastern oil could reach global markets despite the ongoing conflict in the region.
However, recent attacks by Iranian forces in nearby waters have made operations increasingly unsafe, prompting authorities to suspend tanker movements. Data intelligence firm Kpler estimates that about one million barrels of Omani crude normally pass through the terminal each day.
The disruption came alongside reports that two oil tankers had been struck in Iraqi waters, suggesting the attacks are expanding across multiple parts of the region’s energy infrastructure.
Market analysts say the widening threat to oil shipments has intensified concerns about global supply shortages.
Earlier in the week, the International Energy Agency announced a record release of emergency oil reserves in an effort to stabilise markets. US President Donald Trump had highlighted the move as evidence that his administration was managing rising energy prices linked to the conflict.
But the intervention failed to calm traders.
“This is what I was concerned about with the IEA release — completely ignored, and now prices are higher,” said Darrell Fletcher, managing director for commodities at Bannockburn Capital Markets. “It may have sent the wrong signal. What do they know that we don’t?”
The latest surge in oil prices also follows a warning from Iran’s Islamic Revolutionary Guard Corps, which declared the Strait of Hormuz closed earlier this week. The military group cautioned that markets should “get ready for oil to be $200 a barrel.”
Reports indicate that the force targeted three commercial vessels in the strategic waterway on Wednesday, further escalating tensions around one of the world’s most important oil shipping routes.
Iran’s president also outlined conditions for ending the conflict, saying the United States and Israel must recognise Iran’s rights, guarantee that there would be no further aggression, and provide reparations before any peace agreement could be reached.
Energy markets are now bracing for further volatility as attacks on shipping lanes threaten to disrupt a major portion of global oil supply.
