DUBAI / TEL AVIV / WASHINGTON, March 12 — Oil Tankers Burn Near Iraq after suspected Iranian strikes ignited two fuel vessels in Iraqi waters, marking one of the most serious escalations in the Middle East conflict and raising fears of major disruptions to global oil supply routes.
According to maritime security officials and port authorities, the vessels were set ablaze after explosive-laden boats believed to be linked to Iran struck the tankers in the Gulf region. The incident occurred amid ongoing hostilities involving Iran, the United States, and Israel that have intensified across the Middle East.
The attacks come as tensions in the region continue to disrupt shipping lanes, energy infrastructure, and global commodity markets.
Oil Tankers Burn Near Iraq as Conflict Expands Across the Gulf
The incident in Iraqi waters occurred Thursday after explosive-laden boats struck two fuel tankers, setting them on fire and killing at least one crew member. Additional projectiles reportedly hit three merchant vessels in Gulf waters.
Maritime security agencies confirmed that the vessels were operating near key shipping corridors when the attacks occurred.
The strikes highlight the growing risks to global oil transportation routes as fighting spreads across the Middle East.
The conflict began nearly two weeks ago with coordinated strikes involving the United States and Israel targeting Iranian facilities. Since then, retaliatory attacks have targeted shipping routes, energy infrastructure, and ports throughout the region.
More than 2,000 people have been reported killed since the conflict escalated.
The growing instability has triggered significant concern among global energy markets and governments reliant on Middle Eastern oil supplies.
Iran Warns Oil Could Reach $200 Per Barrel
Iranian officials signaled that the conflict could have severe consequences for global energy markets.
A spokesperson for Iran’s military command warned that oil prices could surge to $200 per barrel if the conflict continues to escalate and supply routes remain under threat.
Energy markets reacted immediately to the developments.
Oil prices had earlier surged to nearly $120 per barrel earlier in the week before briefly retreating. However, following the tanker attacks, prices jumped nearly 10 percent, pushing crude back above $100 per barrel during Asian trading hours.
The spike reflects growing fears that disruptions to Gulf shipping lanes could significantly reduce global oil supplies.
Financial markets across Asia and the United States also reacted negatively as investors reassessed geopolitical risks.
Major stock indices in Asia fell following the news of the attacks and rising energy prices.
Strait of Hormuz Crisis Raises Global Energy Supply Concerns
The tanker attacks have intensified concerns about the safety of shipping routes through the Strait of Hormuz, one of the most critical energy corridors in the world.
Approximately 20 percent of global oil supplies pass through the narrow waterway between Iran and the Arabian Peninsula.
Iranian military officials declared that the strait was now effectively under Iran’s control.
Shipping traffic through the channel has slowed significantly as insurers, shipping companies, and naval authorities reassess the risks associated with navigating the area.
Sources indicated that Iran may have deployed naval mines in the strait, further complicating efforts to keep the shipping route open.
The Group of Seven (G7) nations, including the United States, Japan, Germany, France, Italy, Canada, and Britain, have begun discussions about providing naval escorts to protect commercial shipping vessels passing through the Gulf.
Strategic Oil Reserves Released to Stabilize Energy Markets
Governments and international institutions have begun emergency measures to stabilize global energy markets following the attacks.
The International Energy Agency (IEA) recommended releasing 400 million barrels of oil from global strategic reserves, marking the largest coordinated intervention since the oil shocks of the 1970s.
Officials said the move is intended to offset supply disruptions and prevent runaway price increases.
Meanwhile, the United States announced that 172 million barrels of crude oil would be released from the U.S. Strategic Petroleum Reserve beginning next week.
U.S. Energy Secretary Chris Wright said the release was authorized by President Donald Trump as part of efforts to stabilize global oil prices.
Trump said the measure would significantly reduce energy costs once the conflict stabilizes.
Trump Claims War Progress While Iran Signals Prolonged Conflict
The tanker attacks occurred as political leaders exchanged conflicting signals about the trajectory of the conflict.
At a campaign rally in Kentucky, President Donald Trump said the United States had effectively “won the war”, but added that the country must continue its operations to ensure stability.
“We don’t want to leave early, do we? We’ve got to finish the job,” Trump told supporters.
However, Iranian officials rejected those claims and warned that the conflict could continue to escalate.
Iran’s military leadership stated that the country was prepared to impose a prolonged economic shock on global markets through energy disruptions.
Energy Infrastructure and Ports Targeted Across the Region
The attacks on the Iraqi tankers are part of a broader wave of strikes across Middle Eastern energy infrastructure.
Iranian drones reportedly targeted oil storage facilities at Salalah port in Oman, while authorities in Bahrain confirmed attacks on fuel storage tanks near the capital’s Muharraq district.
Saudi Arabia also reported intercepting several drones heading toward the Shaybah oil field, one of the country’s largest petroleum production sites.
Authorities in the United Arab Emirates said a drone struck a building near Dubai Creek Harbour, though damage appeared limited.
The incidents demonstrate how the conflict has spread across multiple countries and energy installations throughout the region.
Shipping Risks and Maritime Security Concerns Rise
Shipping companies have increasingly warned about the dangers of operating in the Gulf region.
Maritime security agencies confirmed that another container vessel was struck by an unidentified projectile near the United Arab Emirates on Thursday.
Security officials also warned that ports associated with Iranian naval operations could become potential targets as hostilities continue.
The United States military has advised commercial ships to avoid Iranian naval facilities and sensitive ports in the region.
Iran responded by warning that if its ports are threatened, economic and trade centers across the region could become “legitimate targets.”
Intelligence Reports Suggest Iran Leadership Remains Intact
Western intelligence agencies indicated that Iran’s leadership structure remains largely intact despite ongoing military strikes.
According to intelligence sources familiar with the matter, there is currently no indication that Iran’s government is close to collapse.
Iran’s Supreme Leader Ayatollah Ali Khamenei reportedly survived early attacks and was replaced in operational leadership roles by his son Mojtaba Khamenei, who was lightly wounded during the initial strikes.
U.S. intelligence assessments suggest that Iran still retains significant command and military capability.
Middle East Conflict Sends Shockwaves Through Global Markets
The escalation of attacks on oil infrastructure and shipping routes has triggered widespread volatility in global markets.
Energy analysts say the conflict has already disrupted supply chains and increased risk premiums for shipping insurance.
Global oil markets are now closely monitoring developments in the Strait of Hormuz, which remains the most critical chokepoint for oil transportation worldwide.
Energy traders warn that continued attacks on tankers and infrastructure could trigger further price spikes if shipments from the Gulf region are significantly reduced.
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