Oil hits near $100: Six cargo ships attacked in Persian Gulf, immobilizing the energy market

Today, three more vessels were struck by unknown projectiles as oil prices surged, briefly reaching $100 a barrel following the attacks in the Gulf. The price hike comes despite 32 countries agreeing on Wednesday to release of 400million barrels of reserves to calm markets. The latest strikes involved two tankers hit near Iraq and a container ship struck off the coast of the UAE.

Almost 16 attacks have been reported in the Gulf and the Strait of Hormuz, according to recent updates. The UKMTO says that there have also been reports of suspicious activity during the conflict. Global oil prices have surged rapidly despite a record-breaking agreement by the International Energy Agency (IEA) and the United States to release massive quantities of strategic oil reserves in an attempt to curb the impact of the war in Iran.

Brent crude rose by nearly 9% to top $100 a barrel in Asian trading, even after all 31 members of the International Energy Agency(IEA) committed to releasing 400 million barrels in response to supply concerns.

According to reports released yesterday, a total of 13 ships were attacked in and around the Arabian Gulf, the Strait of Hormuz and the Gulf of Oman between 28 February and 11 March. Ship-tracking websites allowed the two tankers suspected of being targeted to be surrounded by rescue boats.

It is unclear at this stage what caused the explosion; however initial investigation by Iraqi security officials suggest that Iranian explosion-laden boats hit the two tankers, according to Reuters.

The economic shock of the conflict is being felt across the globe, rattling financial markets and pushing the price of Brent crude oil $100 a barrel amid escalating fears over energy supplies. Attacks on the ships in the Gulf have intensified with large explosions reported on two foreign tankers. 

Ongoing regional geopolitical tensions have resulted in oil prices remaining high as long as there is a risk to supplies, and traders continue to expect prolonged disruption.