Oil prices jumped sharply in early Asian trading on Thursday after reports of attacks on oil tankers in the Persian Gulf raised concerns about global energy supply disruptions.
West Texas Intermediate (WTI) crude futures rose about 6.5% to $91.58 a barrel, as markets reacted to heightened security risks in the Middle East.
Media reports said two international oil tankers were attacked in the northern Persian Gulf near the waters of Iraq and Kuwait. Footage of the incident that went viral on social media showed the tankers on fire, while several Iraqi media outlets linked the attack to Iran.
The incident added to tensions in the conflict between the United States, Israel and Iran, which is now entering its 13th day, with no clear sign of abating.
The attacks on the tankers raised concerns about global oil supply disruptions, especially after Iran warned that no crude would pass through the Strait of Hormuz, the world's most important shipping route for energy trade.
Iran was reported to have blocked the route earlier this week. The Strait of Hormuz handles about 20% of global oil supplies, making it a critical point for energy market stability.
Despite rising geopolitical risks, several countries and energy agencies have begun taking steps to stabilize global supplies. The International Energy Agency (IEA) is reportedly preparing to release around 400 million barrels of oil from its member countries’ strategic reserves to ease price pressures.
At the same time, US President Donald Trump announced that Washington would release around 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) to help contain energy price shocks caused by the conflict.
Despite several statements from US officials that the conflict may be nearing an end, the situation on the ground remains tense.
Oil prices had previously surged to nearly $120 a barrel earlier in the week, reflecting heightened concerns among traders about potential disruptions to global energy supplies.
