Iran Warns of $200 Oil as Three More Ships Struck in Gulf

Amid escalating tensions in the Persian Gulf, foreign ships are facing increasing threats, with multiple vessels recently attacked while navigating this crucial maritime corridor. The ongoing situation has sparked significant concern regarding global oil supply and prices.

Three more foreign ships were struck in the Persian Gulf overnight, authorities reported, as assaults on vessels traversing or near the strategically vital Strait of Hormuz continue to intensify.

The latest incidents follow reports of three separate vessels sustaining damage in Gulf waters on Wednesday, as Iranian officials caution that oil prices could soar to $200 a barrel.

A container ship was hit by an unknown projectile approximately 35 nautical miles north of Jebel Ali, a major port city near Dubai in the United Arab Emirates, as indicated by the United Kingdom Maritime Trade Operations (UKMTO) center on Thursday. This incident led to a minor fire onboard, but all crew members were reported safe.

Earlier, two foreign oil tankers were left ablaze in Iraqi waters after being struck near the port of Umm Qasr, close to the city of Basra.

At least one casualty was reported from the attack, according to multiple media sources citing Iraqi port officials, while 38 crew members were rescued from the vessels. Iraq’s General Company for Ports was not immediately available for comment when contacted by CNBC.

Since the U.S. and Israel commenced airstrikes on Iran on February 28, shipping traffic through the Strait of Hormuz has virtually halted. In response, Iran has retaliated by targeting ships attempting to navigate the strait, with several incidents reported in recent days.

The narrow waterway is a vital maritime passage that links the Persian Gulf with the Gulf of Oman, facilitating the movement of roughly 20% of the world’s oil and gas.

Recent attacks on commercial vessels in the Gulf have raised fears of a prolonged economic downturn.

“Prepare for oil to reach $200 a barrel, as oil prices are reliant on regional security that has been destabilized,” stated Ebrahim Zolfaqari, spokesperson for Iran’s military command, on Wednesday, according to Reuters.

Crude prices surged significantly on Thursday morning, as traders monitored supply risks closely, seemingly undeterred by the International Energy Agency’s announcement regarding the release of a record 400 million barrels of oil.

International benchmark Brent crude futures for May delivery traded 5.7% higher at $97.16 per barrel, while U.S. West Texas Intermediate futures for April delivery rose 5.3% to $91.88.

The IEA did not provide a timeline for the release of these stocks on Wednesday, noting that the reserves would be distributed according to the appropriate circumstances of each of its 32 member countries.