Iran’s targeting of Middle East energy has driven oil prices back above the $100 a barrel level again, with market experts expressing increased alarm over the prospects for long term damage to the industry.
admin
Iran’s targeting of Middle East energy has driven oil prices back above the $100 a barrel level again, with market experts expressing increased alarm over the prospects for long term damage to the industry.
Brent crude costs briefly hit $101 overnight after it emerged that key infrastructure in Gulf nations had been damaged or destroyed – both on land and at sea.
The incident that stood out was an Iranian attack on two fuel tankers in Iraqi waters, off Basra, in which explosive-laden boats were used.
Iran war latest: Israel ‘involved in selecting target’ for deadly strike on school
Iraq responded by suspending operations at all its oil ports. Further attacks have been reported more widely on Thursday, with Dubai and Bahrain affected.
Market analysts suggested that the clear tactic to target energy by the Iranian regime risks further long term damage to output, exacerbating efforts to restore oil and gas flows to normal once the conflict ends.
Prices came down from war-led peaks of $118 on Monday when it emerged that the International Energy Agency (IEA) was planning to coordinate a record release of strategic oil reserves to partly compensate the market for lost flows due to the effective closure of the key Strait of Hormuz shipping route.
More from Money 
That has deprived the world of a fifth of its oil and natural gas deliveries.
Confirmation on Wednesday that the stored oil, to be released by more than 30 nations, would be gradually introduced did not move values down further as it became clear that attacks were intensifying.
Image: A tanker is seen listing following the attack in Iraqi waters. Pic: Reuters In its regular monthly market report, released on Thursday morning, the IEA warned: “The war in the Middle East is creating the largest supply disruption in the history of the global oil market.”
It pointed to an estimated hit to global supply of eight million barrels of oil per day this month, adding that 10% of world production had been lost due to shutdowns.
Brent was trading just below the $100 mark on Thursday afternoon – threatening further upwards pressure to fuel prices at UK forecourts where costs for diesel have leapt 9%, on average, since the war began.
You need javascript enabled to view this content
Enable javascript to share Share
Enable javascript to share Share
