Baghdad, Iraq. Two fuel tankers were set ablaze in Iraqi waters as attacks on oil and transport facilities across the Middle East intensified, adding to renewed fears of supply disruption and pushing oil prices higher.
Tankers hit in Iraqi and Gulf waters
Iran appeared to have set ablaze two tankers in Iraqi waters, port officials, maritime security and risk firms said. Iranian explosive-laden boats appeared to have attacked the vessels, setting them ablaze and killing one crew member, after projectiles struck three merchant vessels in Gulf waters, the same sources said.
Conflict widens and casualties rise
Unleashed with joint U.S. and Israeli air strikes on Iran almost two weeks ago, the war has so far killed around 2,000 people and thrown global energy markets and transport into chaos. The United Nations Children’s Fund (UNICEF) said more than 1,100 children had been killed or injured.
The conflict has spread across the Middle East and prompted plans for a record release of strategic oil reserves to dampen one of the worst fuel shocks since the 1970s.
Oil prices and markets react
Oil prices, which shot up earlier in the week to nearly $120 a barrel before retreating, jumped almost 10% back above $100 a barrel in Asian trade on Thursday amid renewed fears about supply disruption. Wall Street’s main share indexes fell and stocks in Asia followed suit.
Warnings of prolonged economic shock
Iran has warned of a prolonged economic shock, with the spokesperson for Iran’s military command saying on Wednesday in remarks directed at the U.S.: “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised.”
Trump claims U.S. has won the war
At a campaign-style rally in Kentucky ahead of November midterm elections in which his Republican party is trailing badly, President Donald Trump said the United States had won the war but did not want to have to go back every two years.
“We don’t want to leave early do we?” he said on Wednesday. “We got to finish the job.”
IEA recommends unprecedented reserve release
The International Energy Agency, made up of major oil consuming nations, on Wednesday recommended releasing 400 million barrels from global strategic reserves to dampen one of the worst oil shocks since the 1970s, the biggest such intervention in history.
“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” said Tony Sycamore, analyst at IG.
How do you think the widening conflict will affect fuel prices and shipping in the coming weeks?