Key Highlights
- Brent crude temporarily exceeded $101 per barrel Thursday before closing near $98, marking a 6.6% daily increase
- Tanker strikes in Iraqi territorial waters within the Persian Gulf resulted in at least one fatality
- Oman ordered a complete evacuation of vessels from the Mina Al Fahal export facility as a safety measure
- China implemented a comprehensive ban on refined petroleum product exports for March to safeguard domestic reserves
- The International Energy Agency unveiled a historic 400 million barrel strategic reserve deployment to stabilize markets
Global petroleum markets experienced another dramatic spike Thursday following fresh assaults on commercial vessels and emergency terminal closures that intensified anxieties over Middle Eastern supply chains.
Brent crude climbed to a peak of $101.59 per barrel during early trading hours before moderating to approximately $98. West Texas Intermediate advanced more than 6% to reach $92.61. These benchmarks had previously approached $120 levels earlier in the week.
Two commercial oil tankers sustained strikes in the northern Persian Gulf region within Iraqi territorial waters. Footage circulating on social media platforms depicted the vessels engulfed in flames. Iraqi port authority director Farhan al-Fartousi confirmed to The Wall Street Journal that one crew member perished and emergency responders were conducting evacuation operations. Iraq subsequently suspended operations at all petroleum export facilities following the incident.
Meanwhile, Oman ordered a precautionary evacuation of all maritime traffic from its Mina Al Fahal export facility in response to the series of attacks targeting regional shipping infrastructure. This terminal represents one of the limited remaining channels for Middle Eastern crude oil to access international markets. Normal operations at the facility were subsequently restored.
The Strait of Hormuz, a critical chokepoint handling approximately 20% of worldwide petroleum supply, remains functionally blocked. Iranian authorities have declared that no crude shipments will transit the waterway. This blockade has compelled Gulf region producers, including Iraq, Kuwait, and Saudi Arabia, to reduce production volumes.
Beijing Implements Strict Fuel Export Controls
China declared an immediate prohibition on refined petroleum product exports throughout March. Chinese refining operations also began canceling previously contracted gasoline and diesel shipments. The nation’s leading processors had already received directives to cease negotiating new export agreements.
Goldman Sachs cautioned that oil prices might surpass the 2008 record of $147.50 per barrel should Hormuz transit restrictions persist through March.
ANZ market analysts suggested that markets continue to underestimate the probable length of supply disruptions. “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 Cap Additional Price Increases
The International Energy Agency is coordinating an unprecedented deployment of 400 million barrels from emergency strategic stockpiles. U.S. President Donald Trump announced Wednesday that America would contribute 172 million barrels from the Strategic Petroleum Reserve.
Nevertheless, Sanford C. Bernstein analyst Neil Beveridge noted that reserve releases represented “nothing compared with the 20 million barrels” per day of supply interruption resulting from the Hormuz blockade.
The military confrontation entered its thirteenth consecutive day Thursday with no resolution in sight. Iranian officials stated that any ceasefire arrangement would necessitate assurances from both the United States and Israel against future strikes on Iranian territory. Washington has not accepted these conditions.
Trump addressed supporters in Kentucky on Wednesday stating the conflict would conclude shortly, though he emphasized the U.S. “would stay as long as it takes.”
U.S. petroleum inventory statistics released Wednesday revealed an unexpectedly large accumulation of 3.8 million barrels during the previous week.
