Oil flows are expected to begin at 10 a.m. , according to state media citing Oil Minister Hayan Abdel-Ghani. The agreement includes provisions to enhance security around oilfields and ensure continuity of export operations, Kurdish authorities said.

KRG Prime Minister Masrour Barzani said the region would allow crude exports through its pipeline network “at the earliest possible time” given the exceptional circumstances facing the country. He added that talks with Baghdad would continue to lift trade restrictions and provide guarantees to international oil companies to safely resume production.

Barzani also said he had instructed regional officials to facilitate exports following discussions with U.S. envoy Tom Barrack, emphasising the need to prioritise economic stability for citizens.

Tensions between Baghdad and the KRG had escalated in recent days, with Kurdish authorities accusing the federal government of failing to address security and economic challenges affecting the oil sector. Baghdad, in turn, said the KRG had refused to allow use of a regional pipeline as an alternative export route, alleging the imposition of arbitrary conditions.

The dispute unfolded against the backdrop of wider regional instability, including disruptions to crude flows linked to the Iran conflict.

Iraq’s presidency called on both sides to cooperate to restart exports, while parliament issued a seven-point directive urging the government to secure alternative outlets for crude to mitigate economic damage under current security conditions.

The parliamentary intervention followed consultations with the oil ministry to assess the impact of halted exports after the closure of the Strait of Hormuz, a key global energy transit chokepoint, underscoring the urgency of restoring flows through northern export routes.

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.

Finance Minister Wale Edun convened the country’s Economic Management Team to assess how rising geopolitical tensions could affect crude oil prices, capital flows and logistics costs, the ministry said in a statement.

Officials said instability linked to the conflict is already pushing up global crude prices, with concerns centred on possible disruptions near the Strait of Hormuz, one of the world’s most critical oil shipping routes.

The ministry said higher oil prices could translate into increased domestic costs for fuel, diesel, cooking gas and fertiliser, potentially placing additional pressure on households and businesses.

Authorities warned that prolonged instability in the Middle East could also intensify inflationary pressures and raise living costs.

Government officials said they are closely tracking a range of economic indicators, including crude price movements, exchange-rate pressures, capital flows, fiscal risks and foreign reserve levels.

The review comes as policymakers weigh potential spillover effects from global market volatility on the country’s financial stability.

The finance ministry said Nigeria entered the period with strengthening macroeconomic fundamentals, citing gross domestic product growth of 4.07% in the fourth quarter of 2025.

Authorities said policies would remain under review to protect households and businesses while maintaining investor confidence as global market conditions evolve.

The Paris-based agency is expected to publish the recommendation at 1300 GMT on Wednesday, shortly before leaders of the Group of Seven hold a virtual meeting chaired by Emmanuel Macron to discuss coordinated measures to stabilize energy markets.

A source said the proposed release would be spread over at least two months. Sara Aagesen, Spain’s energy minister, said participating countries could have up to 90 days to release the volume if the plan is adopted.

Aagesen described the proposal as unprecedented in scale compared with previous coordinated actions. During the energy shock following the Russian invasion of Ukraine, around 182 million barrels were released from strategic reserves, she said.

The current proposal would more than double that amount, reflecting concerns among major economies about the impact of the Iran conflict on global oil markets and energy security.

The International Energy Agency coordinates emergency oil stockpiles among major consumer nations, a system established after the oil shocks of the 1970s to provide a buffer against severe supply disruptions.

Leaders of the Group of Seven are scheduled to discuss the proposal in a meeting led by France on Wednesday after the bloc’s energy ministers voiced support for using strategic reserves to counter market volatility.

“In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves,” G7 energy ministers said in a joint position.

A G7 source told Reuters that while there is currently no physical shortage of crude oil among member states, sharply rising prices and market volatility have prompted governments to consider coordinated intervention.

Oil prices initially surged following the escalation of the U.S.-Israeli conflict with Iran, though markets later rebounded as traders questioned how effective a large reserve release would be in easing supply concerns.

President Donald Trump issued the warning after global financial markets swung sharply on Monday amid signs that Iran’s security establishment was consolidating behind newly appointed Supreme Leader Mojtaba Khamenei, signalling Tehran may be preparing for a prolonged confrontation.

Iran’s Islamic Revolutionary Guard Corps said it would prevent “one litre of oil” from leaving the Middle East if strikes by the United States and Israel persist, according to Iranian state media.

Trump said Washington had already inflicted heavy damage on Iran’s military infrastructure and warned that any attempt by Tehran to halt tanker traffic through the Strait of Hormuz would trigger far stronger U.S. retaliation.

“We will hit them so hard that it will not be possible for them or anybody else helping them to ever recover that section of the world,” Trump said during a news conference on Monday.

In a later post on his Truth Social platform, Trump reiterated that warning, saying the United States would strike Iran “twenty times harder” if the country attempted to block oil shipments through the narrow waterway, which handles roughly one-fifth of global crude supply.

Iran’s Revolutionary Guards responded by saying the end of the conflict would be determined by Tehran, not Washington. A spokesperson quoted by state media said Iran would ensure that no oil exports leave the region if the attacks by the United States and Israel continue.

The comments came as large crowds gathered in Iran in support of Mojtaba Khamenei, according to Iranian media, suggesting the country’s leadership is seeking to demonstrate domestic backing following the escalation of hostilities.

Iran’s ambassador to the United Nations said at least 1,332 Iranian civilians have been killed and thousands wounded since the United States and Israel launched air and missile strikes across Iran at the end of February.

Washington and its allies say the strikes are aimed at crippling Iran’s missile capabilities and nuclear programme. Israel has said its objective is to topple Iran’s clerical leadership, while Trump has said the conflict could end only if Tehran accepts a government compliant with U.S. demands.

Financial markets reacted sharply to the escalating rhetoric. Crude oil prices and global stock markets swung between gains and losses as investors weighed the risk that the conflict could disrupt energy flows through the Strait of Hormuz, one of the world’s most critical oil shipping routes.

The Suezmax tanker Shenlong, which can carry about 1 million barrels of crude, loaded its cargo at the Saudi Arabian port of Ras Tanura, according to separate vessel tracking data from the MarineTraffic platform.

Tracking information showed the vessel last recorded its position inside the Strait of Hormuz on March 8 before updating its destination as the Indian port of Mumbai.

The strait is a critical corridor for global energy flows, linking Gulf oil producers with markets in Asia and beyond.India is among the world’s largest crude importers and regularly receives shipments from Middle Eastern producers, including Saudi Arabia.

The vessel is managed by Athens-based shipping company Dynacom, according to maritime data. The company did not immediately respond to a request for comment regarding the shipment.

Brent crude futures rose as much as $18.35, or 19.8%, to $111.04 a barrel and were up $15.24, or 16.4%, at $107.93 by 0014 GMT. U.S. West Texas Intermediate crude climbed $16.50, or 18.2%, to $107.40 a barrel after earlier jumping as much as $20.34, or 22.4%, to $111.24.

The sharp gains followed steep rises last week, when Brent advanced 27% and WTI climbed 35.6%, as escalating hostilities in the Middle East disrupted production and heightened concerns over global energy supplies.

Several major producers in the region have begun reducing output as the war affects export routes and storage capacity.

Oil production in Iraq from its main southern fields has dropped by about 70% to roughly 1.3 million barrels per day because exports through the Strait of Hormuz have been blocked by the conflict, according to three industry sources.An official with the state-run Basra Oil Company said crude storage facilities had reached maximum capacity.

Meanwhile, Kuwait Petroleum Corporation began cutting oil production on Saturday and declared force majeure on shipments, although it did not disclose the scale of the reductions.Earlier supply disruptions also included reductions in liquefied natural gas shipments from Qatar as the regional conflict affected export logistics.

Market participants have focused on the security of shipping routes through the Strait of Hormuz, one of the world’s most important oil transit chokepoints.

Analysts say prolonged disruptions could leave global consumers and businesses facing elevated fuel prices for weeks or months even if the conflict ends quickly, as producers cope with damaged facilities, logistical disruptions and increased risks to tanker traffic.

“I think prices have rallied this morning on the reports that Middle East producers are now reducing output due to storage facilities filling up fast,” said Daniel Hynes, senior commodity strategist at ANZ.

Hynes added that producers could soon be forced to shut down wells if storage limits are reached, which would further tighten supply and delay any recovery in output once the conflict eases.

Energy infrastructure across the region has also faced security threats.The Fujairah Media Office said a fire broke out in the UAE’s Fujairah oil industry zone after debris fell in the area, though no injuries were reported. Separately, Saudi Arabia said its defence ministry intercepted a drone heading toward the Shaybah oilfield.

The market reaction has also been influenced by political developments in Iran. Tehran on Monday named Mojtaba Khamenei as the new supreme leader following the death of his father, Ali Khamenei, signalling continued hardline leadership amid the conflict.

“With the appointment of the late leader’s son as Iran’s new leader, U.S. President Donald Trump’s goal of regime change in Iran has become more difficult,” said Satoru Yoshida, a commodity analyst at Rakuten Securities.

Yoshida said the development could intensify concerns that Iran will continue actions affecting shipping routes and energy infrastructure, a scenario that could push oil prices higher.

As prices climbed, U.S. Senate Democratic leader Chuck Schumer called on the administration to release crude from the Strategic Petroleum Reserve to stabilise markets and reduce price pressures on consumers.

-Israeli war with Iran pushed global oil prices above $100 a barrel and intensified military and diplomatic tensions across the Middle East.Iran’s Assembly of Experts, an 88-member clerical body responsible for selecting the supreme leader, said it had voted decisively to appoint Ayatollah Seyyed Mojtaba Hosseini Khamenei as the third leader of the Islamic Republic, according to a statement issued shortly after midnight Tehran time.

Mojtaba Khamenei replaces his father, Ali Khamenei, who was killed in one of the first strikes launched against Iran during the conflict that erupted more than a week ago between Iran and a U.S.-Israeli alliance.The supreme leader holds ultimate authority over Iran’s political system, armed forces and strategic decision-making.

Mojtaba Khamenei, a cleric known to wield influence within Iran’s security establishment and the vast economic networks built during his father’s rule, had long been viewed as a leading contender to succeed the elder Khamenei.The Assembly of Experts said the vote followed deliberations over the succession after the death of the longtime leader.

The appointment signals continuity in Iran’s ideological leadership during a period of escalating military confrontation.Iran’s armed forces leadership pledged allegiance to the new supreme leader following the announcement, reinforcing the authority of the office at a moment when the country is engaged in active conflict with regional and Western adversaries.The war has already produced significant military and economic repercussions. Oil markets reacted sharply, with U.S. crude futures surging more than 20% amid fears the conflict could disrupt energy flows from the Middle East, a region that accounts for a substantial share of global oil supply.

U.S. President Donald Trump had earlier suggested Washington should influence the selection of Iran’s next leader, remarks that risked inflaming tensions further.“If he doesn’t get approval from us, he’s not going to last long,” Trump told ABC News on Sunday when asked about the succession.

After Mojtaba Khamenei was named, Trump declined to comment directly on the appointment in an interview with the Times of Israel, saying only, “We’ll see what happens.”Trump also told the newspaper that any decision to end the war would be made jointly with Israeli Prime Minister Benjamin Netanyahu.Israel had previously warned it could target whoever emerged as Iran’s next supreme leader, underscoring the stakes surrounding the succession during wartime.

The military confrontation has continued to escalate across the region. Israel struck major fuel storage facilities near Tehran as part of its campaign against Iranian infrastructure.Iran has also launched retaliatory strikes against U.S. facilities in the Middle East.The U.S. military said a seventh American service member had died from wounds sustained during Iran’s initial counter-attack a week ago. The announcement came a day after Trump oversaw the return to the United States of the remains of six other U.S. personnel killed in the same attack.Amid mounting security concerns, Washington on Sunday ordered the departure of non-emergency employees from its embassy in Saudi Arabia, the latest drawdown of American diplomatic staff in the region as the conflict deepens.

The shipments are part of a broader shift in oil trade flows as exporters and buyers respond to uncertainty surrounding the movement of energy supplies through traditional Gulf shipping lanes. Saudi Arabia, the world’s largest oil exporter, has been increasing shipments from its Red Sea facilities as an alternative route amid the heightened regional tensions.

The port of Yanbu on Saudi Arabia’s Red Sea coast has become a key outlet for crude exports during the ongoing conflict, allowing shipments to bypass the Persian Gulf and potentially vulnerable maritime chokepoints.A source familiar with the matter said Indian Oil Corp had secured cargoes from Yanbu, although details on volumes and delivery schedules were not disclosed. The move reflects efforts by refiners to diversify loading points and ensure steady supplies at a time when geopolitical risks are affecting the movement of energy commodities across the Middle East.The conflict involving the United States, Israel and Iran has disrupted oil and natural gas exports from the region, according to industry sources, prompting producers and buyers to explore alternative routes and supply arrangements.

At the same time, Russia is examining the possibility of redirecting liquefied natural gas shipments originally intended for Europe toward Asian markets, including India and China.Russia’s Deputy Prime Minister Alexander Novak said on Friday he had discussed with domestic energy companies the prospect of shifting LNG flows to other countries, according to reports by the Interfax news agency and Izvestia newspaper.A government source in New Delhi said Indian companies had previously purchased both sanctioned and non-sanctioned Russian oil after the United States granted India a waiver. The source added that India would also consider buying Russian LNG if supplies were offered.

Despite the disruption to global energy flows, Indian officials said the country’s domestic fuel market remains stable. A separate government source said there were currently no plans to raise retail prices of petrol and diesel.The official added that national fuel inventories were increasing steadily, indicating that refiners and distributors had sufficient stocks to meet demand.India is the world’s fourth-largest buyer of LNG, and authorities have in recent months rationed supplies to some industries, several of which have reported disruptions linked to tighter availability of natural gas.The adjustments by Indian refiners and policymakers underscore the wider impact of the Middle East conflict on global energy trade, with importers seeking supply flexibility while exporters recalibrate routes and destinations for crude oil and natural gas shipments.