Market reaction
Oil moved higher in early Asian trading on Thursday after reports that two oil tankers had been attacked in Iraqi waters. By 19:29 ET (23:29 GMT), West Texas Intermediate crude futures had risen 6.5% to $91.58 a barrel.
Details of the incident
Media reports said two international oil tankers were struck in the northern Persian Gulf close to the waters of Iraq and Kuwait. Video footage circulating online showed the vessels engulfed in flames. Iraqi channels attributed the strikes to Iran.
Conflict context
The reported strike marks another escalation in the broader Iran conflict, which entered its thirteenth consecutive day on Thursday. Attacks on tankers have amplified concerns about possible interruptions to crude flows from the region, particularly after warnings from Iran that no crude would pass through the Strait of Hormuz. The country had been blocking passage through the strait earlier this week. The Strait of Hormuz accounts for about 20% of global oil supplies.
Supply responses and market dampeners
Despite the surge in prices and heightened supplier-risk concerns, oil remained below its weekly highs as several governments moved to blunt a larger energy shock. Reports indicated the International Energy Agency was preparing to release a record 400 million barrels from strategic reserves. In addition, U.S. President Donald Trump said on Wednesday that the United States would release 172 million barrels from the Strategic Petroleum Reserve to help limit the energy shock from the Iran war.
Ongoing uncertainty
Officials from the United States had repeatedly suggested this week that the war was close to ending, but the Iran conflict showed few signs of de-escalation as it extended into a thirteenth day. Earlier in the week, oil prices had risen as high as nearly $120 a barrel before retreating from that peak.
Implications for markets and logistics
The incidents in the northern Persian Gulf and the broader pattern of hostilities are keeping traders and shippers on alert for further supply interruptions. The combined developments - attacks on tankers, Iran's warnings about the Strait of Hormuz and large-scale releases from strategic reserves - are shaping oil market pricing and logistical planning in maritime routes through the region.
Note: This report summarizes reported events and market responses as they were described in media accounts and official announcements; it does not introduce additional claims beyond those reports.