Oil Prices Climb toward $100 Mark as Iran Attacks on Gulf Shipping Intensify

Global oil prices surged sharply on Thursday, climbing toward the $100-per-barrel mark as escalating attacks on commercial shipping in the Gulf and renewed Iranian threats to keep the Strait of Hormuz closed heightened fears of prolonged supply disruptions.

Benchmark crude markets recorded their strongest gains in months amid growing geopolitical tensions tied to the ongoing regional conflict. U.S. West Texas Intermediate (WTI) crude futures settled at $95.73 per barrel, rising $8.48, or 9.72%, while Brent crude futures climbed by the same dollar amount to close at $100.46 per barrel, an increase of 9.22%.

Latest Oil Prices:

WTI Crude • 95.07 -0.66 -0.69%

Brent Crude • 99.95 -0.51 -0.51%

Murban Crude • 117.7 +16.99 +16.87%

Louisiana Light • 88.30 +1.59 +1.83%

WTI Midland • 97.30 +8.69 +9.81%

Opec Basket • 105.1 +2.66 +2.60%

Mars • 111.1 +8.68 +8.47%

Gasoline • 2.938 -0.026 -0.88%

Natural Gas • 3.235 +0.002 +0.06%

The price rally followed statements by Iran’s new Supreme Leader, Mojtaba Khamenei, who declared that maintaining the closure of the Strait of Hormuz would remain a strategic pressure tool against the United States.

The remarks coincided with continued attacks targeting oil tankers and commercial vessels in Gulf waters. Authorities reported that two oil tankers and a cargo ship were struck near the coasts of Iraq and the United Arab Emirates, marking the latest incidents in a series of maritime assaults that have unsettled global energy markets.

The Strait of Hormuz, one of the world’s most critical energy transit routes, carries a significant share of global oil exports. Any sustained disruption in the waterway raises immediate concerns about supply shortages and price volatility.

Market analysts say investors are increasingly pricing in the risk of a long-term interruption rather than a temporary shock, driving rapid buying across energy markets.

U.S. Energy Secretary Chris Wright told CNBC that the U.S. Navy is not yet prepared to escort oil tankers through the strait, emphasizing that Washington’s immediate priority remains neutralizing Iranian offensive capabilities rather than securing commercial convoys.

The comments added to uncertainty among traders, who had hoped for swift military measures to safeguard shipping routes.

The price surge came despite an unprecedented coordinated release of oil reserves announced by the International Energy Agency (IEA), which pledged to inject 400 million barrels into global markets — including 172 million barrels from the U.S. Strategic Petroleum Reserve.

Analysts noted that markets largely dismissed the move, arguing the released volumes would cover only a fraction of the supply gap created by a potential closure of the Strait of Hormuz.

Logistical and technical constraints could further delay the arrival of these supplies, with experts estimating it may take between 60 and 120 days before the additional oil meaningfully impacts global markets.

Pavel Molchanov, chief investment analyst at Raymond James, described the situation as the most severe supply disruption since the 1970s oil crises, warning that while the reserve release is substantial, “the market needs barrels immediately.”