By Callum Jones

 

LONDON, 12 March. - (ANA) - Meanwhile, Iraq halted all operations at its oil ports after an attack on two nearby oil tankers. Bahrain told residents to stay at home after an Iranian attack on fuel tanks in the Muharraq Governorate.

 

Oman shifted all vessels out of its main oil export terminal at Mina Al Fahal – one of the few remaining ports from which crude can be shipped from the Middle East to the world – after drone strikes at another of its ports, Bloomberg reported, citing sources who received a notice from a port agent.

 

The price of Brent crude, the international benchmark, rallied by 9% to $100.29 a barrel on Thursday despite efforts by governments across the world to allay fears of a sustained supply crunch. It later slipped back to $98 a barrel, up by about 6%.

 

It broke into three figures for the first time in four years on Monday, when it soared as much as 29% to hit a peak of $119 a barrel, before falling back sharply after Donald Trump described the war as “very complete” in a series of conflicting remarks. The oil price had been about $60 a barrel at the start of the year.

 

In an attempt to calm concerns over oil supplies, the International Energy Agency ordered the largest release of government reserves in its history on Wednesday, when its 32 members unanimously agreed to release 400m barrels of emergency crude.

 

Related: IEA orders largest ever release of stockpiled oil to reduce crude price

 

This record release was swiftly eclipsed, however, as fresh violence across the Middle East – and signs that Tehran was deliberately targeting sites – heightened apprehension around the disruption in global energy markets.

 

As prices resumed their rise, Iran’s military command goaded the US. “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” a spokesperson said.

 

The West Texas Intermediate price of US crude also climbed back towards $100 early on Thursday, rising 8.6% to $94.75 a barrel. Leading stock markets in Asia came under pressure, with the Nikkei 225 dropping 1.6% in Japan, while the Kospi fell 1.2% in South Korea. European natural gas prices rose for a second day, up 7.7%.

 

The strait of Hormuz, through which about a fifth of global oil and seaborne gas tankers typically pass, has been in effect closed since the conflict began on 28 February.

 

Aramco, Saudi Arabia’s state oil company, has warned of “catastrophic consequences” for the world’s oil markets if the strait remains blocked.

 

As part of the IEA’s move to calm the oil price shock sparked by the war in Iran, the US announced plans to release 172m barrels of oil from its strategic petroleum reserve.

 

The US energy secretary, Chris Wright, said the release will begin next week, and take approximately 120 days to deliver.

 

In his statement, Wright accused Iran of having “manipulated and threatened the energy security of America and its allies”.

 

Trump had said earlier on Wednesday that he planned to tap the petroleum reserve. He said the move would “substantially reduce oil prices as we end this threat to America and this threat to the world.”

 

On Thursday, Goldman Sachs raised its forecast for Brent in the fourth quarter of 2026 to $71 a barrel, up from $66 a barrel.

 

Jim Reid, a market strategist at Deutsche Bank, said investors were facing the risk of a “broader stagflationary shock”.

 

He said: “From a market perspective, the problem is that investors are increasingly pricing in a more protracted conflict that causes extensive economic damage. After all, with no concrete signs of de-escalation yet, that’s keeping oil prices elevated, and raising the risk of a broader stagflationary shock.”   - (ANA) -

 

AB/ANA/12 March 2026 - - -