Two oil tankers were attacked in Iraqi waters, with both the U.S. and Iran sending signals that "the war will not end soon."
Two oil tankers were attacked and caught fire in Iraqi territorial waters, causing oil prices to surge nearly 9% in a single day, with Brent crude approaching $100 per barrel. Iran stated that the Strait of Hormuz is "undoubtedly" under control, while Trump claimed to have "won the war" but still needs to "complete the mission." The statements from both sides seem to indicate that the end of the ceasefire is still a long way off
The conflict between the U.S. and Iran continues to escalate, causing increased turmoil in the energy market. Iran has blocked the Strait of Hormuz as a means to pressure the U.S.; Trump has stated he wants to "complete the mission," and neither side has signaled a ceasefire, making the end of this war still far from sight.
According to CCTV News, local time on the 12th, officials from southern Iraq reported that two foreign oil tankers were attacked and caught fire within Iraqi territorial waters. At least one person was killed, and 38 crew members were rescued, leading Iraq to suspend operations at its oil ports.
As a result of the attack, oil prices rose nearly 9% on Wednesday and continued to climb during Asian trading hours, with Brent crude reported at about $100 per barrel.
The Iranian military had previously warned to "prepare for oil prices to rise to $200 per barrel," while the U.S. announced the release of strategic oil reserves to stabilize prices, indicating that the game between the two sides has extended from the battlefield to the energy market.
Tankers Attacked, Iraqi Ports Forced to Halt Operations
The two attacked tankers were the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros, with the attack location near the port of Umm Qasr, approximately 50 kilometers south of the southern Iraqi port city of Basra, on the western shore of the Zubair Bay.
According to CCTV News, local time on the 12th, officials from southern Iraq reported that two foreign oil tankers were attacked and caught fire within Iraqi territorial waters. The attack occurred at the port of Umm Qasr, located about 50 kilometers south of the southern port city of Basra, on the western shore of Zubair Bay. Preliminary investigations indicate that a speedboat carrying explosives attacked the tankers.
According to Bloomberg, the Iraqi National Oil Marketing Company (SOMO) stated that Safesea Vishnu was chartered by a company contracted with SOMO, while Zefyros was carrying condensate produced by Basra Gas Company, which was originally scheduled to head to the port of Khour al-Zubair to load an additional 30,000 tons of plastic raw material naphtha before March 12 After the attack, the Iraqi Oil Ports Company announced the suspension of oil port operations, while commercial port operations remain unaffected.
Trump: "Complete the mission," will not withdraw early
At a campaign-style rally in Kentucky, Trump stated that the U.S. has "won" this war but does not want to have to return to the battlefield every two years.
According to CCTV News, on March 11 local time, U.S. President Trump stated that the U.S. military has sunk 28 Iranian minesweepers in the Strait of Hormuz. Trump claimed that the U.S. has "won" the war against Iran but needs to "complete the final work."
Meanwhile, U.S. and Israeli officials stated that their goal is to end Iran's ability to project power abroad and to destroy its nuclear program. An Israeli military official said that the military still has many Iranian targets to strike, including ballistic missiles and nuclear-related facilities.
Iran: The Strait of Hormuz is "undoubtedly" under our control, prepared for oil prices to rise to $200
An Iranian military spokesperson stated on Wednesday that the Strait of Hormuz is "undoubtedly" under Iranian control. There are currently no signs that ships can safely pass through this critical waterway, which carries about one-fifth of the world's oil transport.
According to CCTV News, Iran warned that if attacks on its energy infrastructure continue, Tehran may retaliate against regional energy facilities, stating that oil prices could rise to $200 per barrel.
Iran also announced that it would launch attacks on banks that do business with the U.S. or Israel and urged people in the Middle East to stay at least 1,000 meters away from banks. Previously, an office of a bank in Tehran was attacked overnight.
Energy markets under pressure, all parties scramble to respond to supply shocks
The International Energy Agency (IEA) is releasing 400 million barrels of oil from global strategic reserves to alleviate the most severe oil supply shock since the 1970s, marking the largest strategic reserve release in history. U.S. Energy Secretary Chris Wright stated that Trump has authorized the release of 172 million barrels from the U.S. Strategic Petroleum Reserve starting next week.
Trump stated that the IEA's decision "will significantly lower oil prices." However, the pace of reserve releases among IEA member countries varies, and the total amount released is only a small fraction of the normal supply through the Strait of Hormuz IG analyst Tony Sycamore stated that the recent tanker attack "seems to mark Iran's direct and powerful response to the IEA's announcement last night of a large-scale release of strategic reserves to stabilize runaway oil prices." The G7 group—comprising the United States, Canada, Japan, Italy, the United Kingdom, Germany, and France—has agreed to explore options for providing escorts to ships to ensure their freedom of navigation in the Gulf region
