Oil Jumps as Iran Strikes Fuel Tanks in Bahrain and Tankers Near Iraq

Oil prices jumped Thursday after Iran struck fuel storage tanks in Bahrain and attacked oil tankers near Iraq’s export ports, adding new dimensions to a military campaign that is rapidly dismantling the Gulf region’s energy infrastructure. Brent crude rose around 6% to nearly $98 a barrel, having briefly crossed $100, while emergency reserve releases by the world’s leading oil consumers failed to provide more than temporary market comfort. The attacks underscored the deliberate and systematic nature of Iran’s targeting.
Bahrain ordered residents of the Muharraq Governorate to shelter at home after fuel storage facilities were struck by Iranian forces. Iraq suspended all crude oil exports from its ports following attacks on two nearby tankers. Oman cleared all vessels from its Mina Al Fahal export terminal after a neighboring port came under drone attack. The Thai-registered Mayuree Naree was struck near the Strait of Hormuz, with three crew members reportedly trapped.
Brent gained 9% intraday to touch $100.29 before settling around $98. West Texas Intermediate rose 8.6% to $94.75 a barrel. Oil has climbed from $60 a barrel at the start of 2026 to a peak of $119 this week. Iran’s military warned that oil could reach $200 if regional instability — blamed on the US — persists.
The IEA released 400 million barrels of emergency crude from reserves held by its 32 member nations. The US pledged 172 million barrels from its Strategic Petroleum Reserve, with deliveries beginning within a week. President Trump said the release would reduce prices as the military campaign against Iran is completed.
Goldman Sachs raised its Q4 2026 Brent forecast to $71 per barrel. Deutsche Bank warned of stagflation risks. Japan’s Nikkei fell 1.6%, South Korea’s Kospi lost 1.2%, and European natural gas climbed 7.7%.