Oil prices jump to near $100/bbl on reports of Iraq tanker attacks

Investing.com– Oil prices rose sharply in Asian trade on Thursday, coming back in sight of the coveted $100/barrel level after reports showed two tankers were attacked in Iraqi waters.

The reports kept markets largely on edge over supply disruptions from the U.S.-Israel war with Iran, which entered its thirteenth consecutive day on Thursday.

Brent oil futures jumped over 7% to $99.54/barrel at the open, before trimming some gains to trade at $98.23/barrel by 21:05 ET (01:05 GMT).

West Texas Intermediate crude futures rose 6.9% to $92.04/barrel.

Media reports showed two international oil tankers were attacked in the northern Persian gulf near Iraq and Kuwait. Footage of the event, shared online, showed the tankers engulfed in flames, with Iraqi channels attributing the strike to Iran.

The strike comes as the latest round of hostilities in the Iran conflict, which showed few signs of easing as it entered its thirteenth consecutive day on Thursday.

Attacks on oil tankers spurred heightened concerns over supply disruptions stemming from the war, especially as Iran warned that no crude will pass through the Strait of Hormuz, a key shipping lane.

The country was seen blocking the passage– which accounts for about 20% of global oil supplies– earlier this week.

Still, oil was kept off its weekly highs as several countries stepped in to offset potential supply shocks. Reports showed the International Energy Agency preparing to release a record 400 million barrels of oil from its strategic reserves this week.

U.S. President Donald Trump also said on Wednesday the country will release 172 million barrels of oil from the Strategic Petroleum Reserve to help limit the energy shock from the Iran war.

The Iran conflict showed few signs of de-escalation, despite repeated claims from U.S. officials this week that the war was close to ending.

Oil prices had surged as high as nearly $120/barrel earlier this week.