Khaberni - Oil prices rose Thursday after Iraqi security officials said Iranian boats loaded with explosives hit two fuel tankers amid other global supply disruptions due to the US-Israeli war on Iran.
By 01:18 GMT, Brent crude futures rose by $5.69 or 6.19% to $97.67 a barrel. West Texas Intermediate crude rose $5.11 or 5.86% to $92.36.
On Wednesday, Farhan Al-Fartousi, the General Manager of the Iraqi Ports Public Company, said two foreign tankers carrying Iraqi fuel were attacked by unknown assailants in Iraqi territorial waters causing them to catch fire.
Preliminary investigations by Iraqi security officials showed that boats loaded with explosives from Iran attacked the tankers.
Tony Sickamore, an analyst at IG, said, “It seems to be a prompt and strong Iranian response to the International Energy Agency's announcement last night of launching a massive strategic reserve to temper rising prices.”
The International Energy Agency recommended the release of 400 million barrels of oil, a record amount, to help curb prices that have been elevated by supply shocks resulting from the US-Israeli war on Iran. The United States contributes the lion's share of this step by releasing 172 million barrels from its strategic oil reserve.
Tina Ting, a market analyst at MOMO A.N.Z, said, “The IEA's release of oil reserves might only be a temporary solution, as disruptions to oil shipments through the Strait of Hormuz and significant production halts in some Middle Eastern countries could cause a long-term supply crisis.”
U.S. President Donald Trump said on Wednesday that Washington is in a "very good position" in its war on Iran and that the United States will "keep a close watch on the strait."
However, sources informed on American intelligence said that the Iranian leadership remains largely resilient and does not face the risk of collapsing anytime soon.
Ting said, “Upward pressures on oil prices continue in the absence of signs of a de-escalation of the war in the Middle East.”
