Oil prices jump as tankers set ablaze in Iraqi waters

Brent crude’s price is flirting close to $100/bbl once again, after Iranian missiles struck two tankers carrying Iraqi oil products.

IMAGE: Aerial view of Jebel Ali Port, UAE. Getty Images

A major fire broke out yesterday after the two vessels, Marshall Islands-flagged Safesea Vishnu and Maltese-flagged Zefyros, were struck in Iraqi territorial waters, the country’s national oil marketer State Oil Marketing Company (SOMO) said.

Both vessels were “attacked while in the sideloading area within Iraqi territorial waters,” SOMO said in a statement. “The ZEFYROS was preparing to enter the Khor Al-Zubair port this morning, 12 March 2026,” the Iraqi state-owned company added.

Iraq’s oil ports have completely ceased operations following the attacks, Reuters reported citing Iraq's state news agency.

Another container vessel off the coast of the UAE was struck by a projectile yesterday, causing a fire onboard, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

The incident occurred 35 nautical miles (NM) north of Jebel Ali, UKMTO said.

A Thailand-flagged bulk carrier also caught fire after being attacked in the Strait of Hormuz on Wednesday, Reuters reported.

The attack comes as maritime incidents surge across the Persian Gulf amid escalating tensions between the US, Israel and Iran.

Meanwhile, oil market participants have been warned of a much bigger price shock, after Ebrahim Zolfaqari, spokesperson for Iran’s Khatam al-Anbiya military command, said in a televised statement that prices could skyrocket up to $200/bbl.

“The only way to see oil prices trade lower on a sustained basis is by getting oil flowing through the Strait of Hormuz. Failing to do so means that the market highs are still ahead of us,” two analysts from ING Bank noted.

By Aparupa Mazumder

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