Oil tops $100 as Iran attacks offset IEA stockpile release

Fuel storage tanks are pictured at the CCMP (Compagnie Commerciale de Manutention Petroliere) petroleum depot in Pauillac, north of Bordeaux, south-western France, on March 10, 2026. (AFP)

HONG KONG — Oil prices soared back above $100 Thursday as Iran’s fresh attempts to hit supplies in the Middle East and threats to bring down the global economy overshadowed a record release of strategic crude by the International Energy Agency.

As the US-Israel strikes on the Islamic republic approached their third week, the conflict showed no signs of letting up with Tehran responding with more retaliatory attacks across the Gulf.

The IEA said Wednesday that its members had agreed to unlock 400 million barrels of oil from their reserves — their largest release ever — with 172 million coming from the United States.

However, the move was unable to overcome fears about the choking of energy supplies from the Middle East, with the Strait of Hormuz — through which a fifth of global crude passes — effectively shut down.

As Iran steps up attempts to disrupt supplies across the region, two tankers in Iraqi waters were reported struck Thursday. Baghdad had already said it was cutting output because of the crisis, with Kuwait and kingpin Saudi Arabia following suit.

Also Thursday, Bahrain reported Iran had carried out an attack on fuel tanks in the country, while Saudi Arabia said it had intercepted drones headed to Shaybah oil field.

Both main crude contracts soared. Brent jumped more than nine percent to hit as high as $101.59 a barrel, while WTI spiked at just short of $96. The two had rocketed as much as 30 percent Monday to a peak of nearly $120.

And with hostilities showing no sign of ending, analysts warned $90-$100 a barrel could be the new normal for a while.

Iran said it was ready for a long war of attrition that would “destroy” the world economy, after firing on two commercial ships and threatening any vessels from the United States or its allies.

The Revolutionary Guards warned Wednesday they would strike “economic centres and banks” linked to US and Israeli interests.

The United States and Israel “must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy”, Ali Fadavi, an adviser to the Guards’ commander-in-chief, told state television.

Stocks in retreat

Analysts warn that a prolonged disruption to shipping through the strait — which also carries roughly a third of the fertiliser used in global food production — would deliver a severe economic shock, particularly in Asia and Europe.

Among those badly hit are airlines, with many having to rethink flights through the Middle East, while the rising cost of fuel hits their bottom line. Air New Zealand said Thursday it would cut 1,100 flights over the next two months.

The surge in oil prices has fanned fresh fears about another spike in inflation and warnings that central banks might have to hike interest rates again, having been contemplating cuts just last month.

That has weighed on equities, which resumed their retreat Thursday. — Agence France-Presse