TLDR
- Brent crude momentarily crossed $101/barrel Thursday before closing near $98, marking a 6.6% daily gain
- Iraqi Persian Gulf waters saw two oil tankers attacked, resulting in at least one fatality
- Oman proactively evacuated all ships from Mina Al Fahal terminal
- China implemented an immediate ban on refined petroleum product exports for March
- The IEA unveiled an unprecedented 400 million barrel strategic reserve deployment to stabilize markets
Global crude markets experienced another dramatic surge Thursday as fresh tanker assaults and terminal shutdowns intensified anxiety over Middle Eastern petroleum flows.
Brent crude climbed to a session high of $101.59 per barrel during early trading hours before moderating to approximately $98. West Texas Intermediate gained more than 6% to reach $92.61. The two major benchmarks had previously approached $120 earlier in the week.
Iraqi waters in the northern Persian Gulf became the site of strikes against two oil tankers. Online footage depicted the vessels engulfed in flames. According to Iraqi port authority director Farhan al-Fartousi’s statement to The Wall Street Journal, the attacks claimed one sailor’s life while rescue operations continued to extract remaining crew members. Baghdad responded by closing all Iraqi petroleum export facilities.
Meanwhile, Oman took preventive measures by ordering a complete evacuation of vessels from its Mina Al Fahal export facility following the series of regional maritime attacks. This terminal represents one of the limited remaining channels for Middle Eastern crude to access international buyers. Normal operations subsequently resumed at the facility.
BREAKING: US officials say Iran has laid mines in the Strait of Hormuz, per WSJ.
Just yesterday, the US said there was no indication that Iran was laying mines in the Strait of Hormuz.
The mines are being described as the “most destructive weapons” that the US Navy has faced.
— The Kobeissi Letter (@KobeissiLetter) March 12, 2026
The Strait of Hormuz, serving as a passage for approximately 20% of worldwide petroleum supplies, continues to face effective blockage. Tehran has issued warnings that crude shipments will not transit through the waterway. This closure has compelled Gulf states including Iraq, Kuwait, and Saudi Arabia to reduce production levels.
Beijing Restricts Petroleum Product Shipments
Chinese authorities announced a complete prohibition on refined petroleum product exports effective immediately in March. Chinese refining operations also started canceling previously contracted gasoline and diesel shipments. The nation’s leading processing facilities had already received instructions to cease negotiating new export agreements.
Goldman Sachs cautioned that oil prices might surpass the 2008 record of $147.50 per barrel should Hormuz restrictions persist throughout March.
ANZ market analysts noted that current pricing fails to account for the probable duration of supply interruptions. “Once a conflict extends beyond the initial shock phase, oil markets tend to shift from pricing uncertainty to pricing endurance,” their analysis stated.
Strategic Reserve Deployments Constrain Additional Price Increases
The International Energy Agency is coordinating an historic deployment of 400 million barrels from member nation strategic stockpiles. U.S. President Donald Trump announced Wednesday that America would contribute 172 million barrels from its Strategic Petroleum Reserve.
Notwithstanding these interventions, Sanford C. Bernstein analyst Neil Beveridge characterized reserve releases as “nothing compared with the 20 million barrels” per day being lost due to the Hormuz shutdown.
The military engagement reached its thirteenth day Thursday with no resolution apparent. Iranian officials stated that any cessation of hostilities would necessitate assurances from both Washington and Tel Aviv against future strikes on Iranian territory. The United States has not accepted these conditions.
Trump addressed supporters in Kentucky Wednesday claiming the conflict would conclude shortly, though he emphasized America “would stay as long as it takes.”
U.S. petroleum inventory figures released Wednesday revealed a larger-than-anticipated increase of 3.8 million barrels during the previous week.
