Blazing tankers in Iraqi waters deepen oil shock as Iran defies Trump’s war claims
Tel Aviv /Washington, Iran set ablaze two fuel tankers in Iraqi waters on Thursday in what maritime security officials said appeared to be a direct escalation in attacks on regional oil and transport infrastructure, as Tehran warned global crude prices could surge to $200 a barrel and challenged U.S. President Donald Trump’s assertion that Washington had already “won” the war.
The attacks followed nearly two weeks of conflict triggered by joint U.S. and Israeli air strikes on Iran, a war that has killed around 2,000 people and sent shockwaves through global energy and shipping markets. The United Nations Children’s Fund (UNICEF) said more than 1,100 children were among those killed or injured in the fighting.
Maritime security sources and port officials said explosive-laden Iranian boats appeared to have struck two fuel tankers in Iraqi waters, igniting fires and killing one crew member. Projectiles also hit three merchant vessels in Gulf waters, according to maritime risk monitoring firms tracking the incidents.
Oil prices rose nearly 5% on Wednesday and extended gains in Asian trading on Thursday as traders assessed the risk of prolonged supply disruptions in one of the world’s most critical energy corridors.
Crude had surged to nearly $120 a barrel earlier in the week before easing to around $90, but renewed attacks on shipping raised fears of further volatility. Global equities also reacted to the tension, with Wall Street’s main indexes falling and Asian stocks following the downward trend.
Tony Sycamore, an analyst at IG, said the tanker attacks appeared to coincide with efforts by energy authorities to stabilize markets.“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” Sycamore said.
Iran signaled it intends to inflict sustained economic pressure as the conflict spreads across the Middle East. A spokesperson for Iran’s military command warned the United States that oil prices could soar dramatically.
“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” the spokesperson said in remarks reported on Wednesday.
The war has already prompted governments to prepare what could become the largest coordinated release of strategic oil reserves since the 1970s in an attempt to cushion the global economy from an escalating fuel shock.
Speaking at a campaign-style rally in Kentucky ahead of November midterm elections, where his Republican Party is trailing in several races, Trump said the United States had prevailed militarily but suggested operations might continue.
“We don’t want to leave early do we?” Trump said on Wednesday. “We got to finish the job.
”The conflict has widened beyond Iran’s territory to shipping lanes and energy infrastructure across the region, heightening concerns among governments and markets about the stability of global oil supply and maritime trade routes.
