Brent crude briefly rose above $100 a barrel early Thursday after two oil tankers were reported struck by projectiles near Iraq, adding to supply fears tied to the Iran war and disruption in the Strait of Hormuz. U.S. officials said President Donald Trump authorized a 172 million-barrel release from the Strategic Petroleum Reserve beginning next week.
The global benchmark Brent crude briefly climbed above $100 a barrel early Thursday before easing back to about $97.81, as fresh reports of attacks on commercial shipping near Iraq heightened concerns over oil flows already strained by fighting involving Iran.
The United Kingdom Maritime Trade Operations (UKMTO) said at least two tankers were hit by projectiles off southern Iraq on Wednesday after a third party reported the incidents south of Basra. Industry reporting said at least one of the vessels caught fire and its crew evacuated safely.
Responsibility for the strikes remained unclear. Iran was reported by major outlets to have claimed one of the attacks, saying the ship ignored commands, while Iraqi officials cited in separate reporting said Iran was suspected in the other incident.
Iranian state-linked media circulated footage celebrated by Iranian outlets and tabloid press in which a man says an “American tanker” was destroyed and pledges loyalty to Iran’s leadership. Independent confirmation of the vessel’s nationality and the specific claim of destruction was not available in the reporting reviewed.
Market jitters over shipping risks in and around the Strait of Hormuz have been a key driver of the latest price swings. The Associated Press reported Brent settling at $100.46 on Thursday amid broader worries that prolonged disruption in the Persian Gulf could worsen inflation and slow global growth.
In the United States, the Trump administration said it would tap emergency stockpiles to try to blunt rising energy costs. The Department of Energy said Wednesday that Trump authorized the release of 172 million barrels from the Strategic Petroleum Reserve beginning next week, as part of a coordinated International Energy Agency effort.
Trump, speaking Wednesday night, said the administration would move quickly on the release and later replenish the reserve. Energy Secretary Chris Wright said the drawdown would start next week.
Some assertions circulating alongside the market reaction—such as claims that Iraq and Oman broadly “closed their oil terminals,” and that AAA’s national average gasoline price reached $3.59 a gallon on Thursday versus $2.94 a month earlier—could not be verified from AAA’s published national-average updates available at the time of review, and details varied across secondary reports.
U.S. officials have also discussed ways to reduce risk to commercial vessels transiting the strait, including possible naval escorts, amid continued warnings from maritime and military sources about threats to shipping in the area.
