Iran has intensified hostilities in the Middle East by setting two oil tankers on fire in Iraqi waters while expanding strikes on oil and transport infrastructure across the region.
The move comes alongside warnings from Tehran that global oil prices could surge to $200 per barrel, challenging claims by
US President Donald Trump that the United States had already secured victory in the conflict.
Nearly two weeks after coordinated airstrikes by the United States and Israel targeted Iranian positions, the war has reportedly claimed around 2,000 lives.
The confrontation has disrupted global energy markets and transportation networks, creating widespread uncertainty across the region.
The fighting has spread throughout the Middle East, prompting discussions about a historic release of strategic oil reserves in an effort to soften what analysts describe as one of the most severe fuel shocks since the 1970s.
The United Nations Children’s Fund (Unicef) reported that more than 1,100 children have either been killed or wounded as the violence continues to escalate.
During a campaign-style rally in Kentucky on Wednesday ahead of November’s midterm elections, where his Republican Party is currently trailing, Trump declared that the United States had effectively won the war but indicated a desire to avoid repeated military engagements.
“We don’t want to leave early do we?” he said . “We got to finish the job.”
Oil markets reacted sharply to the intensifying crisis. Prices, which had earlier climbed close to $120 a barrel before easing to about $90, jumped nearly five percent on Wednesday and continued rising during Asian trading on Thursday as fears about supply disruptions resurfaced. Meanwhile, major stock indexes on Wall Street declined, with Asian markets following the downward trend.
Iran signaled its intention to sustain economic pressure, with a spokesperson for the country’s military command warning the United States of severe consequences for energy markets. “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” the official said on Wednesday.
Authorities reported that Iranian boats packed with explosives appeared to have attacked two fuel tankers in Iraqi waters, igniting fires and killing one crew member. The incident followed projectiles striking three merchant vessels in the Gulf, according to port officials and maritime security and risk analysts.
“This appears to mark a direct and forceful Iranian response to the International Energy Agency’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” said Tony Sycamore, an analyst at IG.
Iran also struck fuel storage tanks at a facility in Bahrain’s Muharraq area, according to the country’s interior ministry.
The International Energy Agency (IEA), representing major oil-consuming nations, recommended on Wednesday that 400 million barrels be released from global strategic reserves to ease the energy crisis. The proposal represents the largest coordinated intervention of its kind on record and is aimed at containing one of the biggest oil shocks in decades.
Trump welcomed the decision, stating that the move “will substantially reduce oil prices as we end this threat to America and the world”.
U.S. Energy Secretary Chris Wright added that Trump had authorized the release of 172 million barrels from the U.S. Strategic Petroleum Reserve beginning next week.
Shipping activity through the Strait of Hormuz remains effectively halted, with no indication that vessels can safely navigate the critical passage along Iran’s coast. The narrow waterway typically carries about one-fifth of the world’s oil supply.
An Iranian military spokesperson said Wednesday that the Strait was “undoubtedly” under Iran’s control. In response, members of the G7 — the United States, Canada, Japan, Italy, Britain, Germany and France — agreed to explore the possibility of escorting ships to ensure safe passage through the Gulf.
Trump said U.S. forces had destroyed 58 Iranian naval vessels and claimed Iran was “pretty much at the end of the line”.
He said the United States would now “look very strongly” at the Strait of Hormuz, adding: “The straits are in great shape. We’ve knocked out all of their boats. They have some missiles, but not very many.”
Trump had earlier said ships “should” continue passing through the strait, though sources indicated that Iran had deployed roughly a dozen naval mines in the channel, further complicating the blockade.
ABC News reported that the Federal Bureau of Investigation warned of the potential for Iranian drones to target the U.S. West Coast. Trump, however, said he was not concerned that Iran might carry out attacks on American soil.
The U.S. State Department also cautioned that Iran and allied militias could be preparing to strike U.S.-owned oil and energy infrastructure in Iraq. Officials warned that such militias have previously targeted hotels frequently used by Americans.
Officials in Washington and Israel say their objective is to eliminate Iran’s ability to project military power beyond its borders and dismantle its nuclear program. An Israeli military official indicated that a wide range of potential targets remains under consideration, including ballistic missile facilities and nuclear-related installations.
The U.S. military has also advised Iranian civilians to avoid ports hosting Iranian naval facilities, a warning that prompted Tehran to respond that any threat to those ports would make economic and trade centers across the region “legitimate targets”.
With fuel prices climbing rapidly, the cost of oil is increasingly shaping strategic decisions surrounding the conflict and its broader economic consequences.
