Oil prices spike on fresh wave of attacks in the Gulf

12th Mar 2026 10:39

(Sharecast News) - Oil prices spiked once again on Thursday, despite countries around the world pledging to release crude reserves, as hostilities intensified in the Middle East.

The International Energy Agency said on Wednesday that its 32 members had agreed to release an unprecedented 400m barrels of oil, to help curb the economic fallout from the war.

Prices initially softened in response, but overnight they once again raced higher, after three more vessels were hit in the Gulf, two in Iraqi waters and another near Dubai. A fuel facility in Bahrain and an Italian military base in Iraq were also hit.

Benchmark Brent reached $101 a barrel before falling back in morning trading. However, as at 1030 GMT, it was trading up 5% at $96.66. West Texas Intermediate was ahead 5% at $91.50 a barrel.

Around a fifth of the world's oil supply is transported through the narrow Strait of Hormuz between Iran and Saudi Arabia. It is now deemed too dangerous to use, and shipping traffic has ground to a near-halt. Iran has pledged to target any vessel linked to the US, Israel or their allies.

Oil and gas facilities in the region are also coming under attack, and a number of suppliers are shuttering operations. Iraq closed all of its terminals overnight following the latest wave of attacks.

The IEA has warned that global crude supplies will hit their lowest level in four years this month.

Donald Trump insisted earlier this week that the war was "ahead of schedule" and that an end was in sight. But he provided no timeline, no clear objectives and was often contradictory, including pledging on social media that "Death, Fire, and Fury will reign upon them" if Iran disrupted shipping in the Strait of Hormuz.

Russ Mould, investment director at AJ Bell, said: "Iran has warned of $200 oil as it continues to target key infrastructure and shipping routes.

"While it is in Iran's interest to engage in this sort of wild speculation, the longer we go without a viable path to de-escalation the bigger the impact this energy shock is likely to have."

Joshua Mahony, chief market analyst at Scope Markets, said: "While Trump's claim that we could soon see a resolution to the conflict does provide hesitancy for the bulls, the reality of the situation will undoubtedly call for higher prices as the days roll on."