Oil Prices Surge Above $100 As Iran Attacks Offset Global Reserve Release

An oil tanker unloads crude oil at a terminal at the port in Qingdao,
in China’s eastern Shandong province on March 11, 2026. (Photo by CN-STR / AFP)

Global oil prices climbed above $100 per barrel on Thursday, as renewed attacks linked to Iran on energy infrastructure and shipping routes in the Middle East overshadowed efforts by major economies to stabilise markets through emergency oil releases.

The spike in crude prices comes amid escalating tensions in the region, which have disrupted supply routes and heightened fears of a prolonged energy crisis. Markets reacted sharply, with global stocks extending losses as investors grappled with the possibility of sustained supply shortages.

According to the International Energy Agency (IEA), the ongoing conflict has triggered what could become the largest supply disruption in the history of the global oil market. In response, member countries agreed to release 400 million barrels of crude oil from strategic reserves, the biggest coordinated drawdown ever undertaken.

However, the move has done little to calm market nerves. Analysts say the emergency reserves cannot fully compensate for the scale of disruptions currently affecting energy supplies across the Middle East.

One of the most critical flashpoints is the Strait of Hormuz, a narrow maritime passage that carries roughly one-fifth of the world’s oil supply. Iranian retaliatory actions against ships and Gulf energy targets have effectively halted traffic through the strategic corridor, raising fears of a deeper global energy shock.

Reports also indicate that an attack on two oil tankers near Iraq resulted in the death of at least one crew member, while another cargo vessel caught fire after being struck by debris from nearby explosions.

Despite the surge in prices, U.S. President Donald Trump said curbing Iran’s nuclear ambitions remains a priority, even if the conflict drives energy prices higher.

With tensions showing little sign of easing, analysts warn that continued disruptions in the Gulf could push oil prices even higher and intensify inflationary pressure across the global economy.