Oil Prices Top $100 a Barrel Again as Iran Conflict Escalates with New Gulf Shipping Attacks

Crude oil prices have climbed back above $100 a barrel today, driven by fresh Iranian-linked attacks on shipping in the Gulf and persistent fears that the US-Israel-Iran war will cause prolonged disruption to global energy supplies.

Brent crude futures rose sharply in early trading, briefly exceeding $100 before settling around $102–$107 in London midday, while West Texas Intermediate traded near $100. The latest surge follows overnight incidents, including explosions on two foreign tankers near Iraq’s Umm Qasr port in Basra and a container ship struck north of Jebel Ali in the UAE, according to UK Maritime Trade Operations (UKMTO) and local authorities.

Conflict Escalation and Supply Disruptions

The attacks killed at least one person and injured dozens, forcing Iraq to suspend operations at its southern oil terminals and Oman to order vessels to evacuate the Salalah export terminal as a precaution. Authorities in Iraq and the UAE reported the vessels were hit by “unknown projectiles,” with rescue operations ongoing.

The rally comes despite a major intervention earlier this week by 32 members of the International Energy Agency (IEA), who agreed to release 400 million barrels of emergency oil reserves – equivalent to roughly four days of global consumption – to ease supply concerns.

US President Donald Trump sought to reassure markets on Wednesday evening, describing the military operation against Iran as an “excursion” and adding that the campaign was “very complete.” However, traders remain focused on the Strait of Hormuz, where Iran’s Revolutionary Guard Corps has warned that Western financial institutions are now “legitimate targets.”

Market Reaction

The oil rally has triggered sharp moves across global financial markets:

• US Indices: The Dow fell 601 points (1.24 per cent); S&P 500 dropped 0.5 per cent.

• Asian Markets: Japan’s Nikkei lost >7 per cent; South Korea’s Kospi lost >8 per cent.

• Safe Havens: The US Dollar Index rose 0.4 per cent; 10-year Treasury yields reached 4.13 per cent.

• Commodities: Gold fell 1.4 per cent to $5,097 per troy ounce.

• Volatility: The VIX jumped 10 per cent.

Informed observers have warned that the oil shock won’t end until ships can sail freely through the Strait. Until then, markets are likely to become increasingly concerned about a 1970s-style stagflation scenario.

The conflict has widened beyond Iran and Israel, with Iranian strikes reported in Bahrain and Oman, and Israeli airstrikes continuing in Lebanon. The attacks have disrupted oil infrastructure and heightened fears of a broader energy crisis, as the G7 finance ministers and IEA Executive Director Fatih Birol are expected to coordinate further responses.