Oil prices surged back above $100 a barrel on Thursday after attacks on oil tankers and growing disruption in the Gulf raised fresh fears about global crude supplies. Brent crude rose 9.3% to $100.50 a barrel and West Texas Intermediate climbed 8.8% to $94.92 at about 0305 GMT, as the conflict involving Iran, the United States and Israel kept traders focused on the Strait of Hormuz.
The jump capped another volatile stretch for the oil market. Earlier in the session, at around 0100 GMT, Brent was up 7.2% at $98.60 a barrel and WTI had gained 6.5% to $92.96, showing how quickly supply fears were feeding into prices. The same report said Brent had briefly surged to $120 a barrel earlier in the week before easing back to around $102 on Monday.
Tanker strikes shake crude markets
Concerns about supply disruptions intensified after attacks on oil tankers raised fears that the conflict could hit global crude flows. The Times of India reported that videos circulating online showed vessels on fire, while Iraqi media reports attributed the strikes to Iran. It also said the conflict had entered its 13th consecutive day on Thursday with no clear sign of de-escalation.
The Strait of Hormuz has become the key pressure point for energy traders. The waterway connects the Persian Gulf with the Gulf of Oman, and nearly 20% of the world’s oil trade normally passes through it. The report said tanker traffic through the strait has been severely disrupted because of escalating conflict and threats of missile and drone attacks.
Those risks have outweighed efforts to reassure the market. The latest price spike came even as governments and energy agencies moved to release crude from emergency stockpiles in an effort to stabilize supply and calm traders.
Emergency reserves enter the picture
The United States Department of Energy said on Wednesday it would release 172 million barrels of crude from the Strategic Petroleum Reserve starting next week. However, the department also said the release would take about 120 days to deliver based on planned discharge rates, meaning the extra supply will not hit the market immediately.
US President Donald Trump also signaled that Washington could tap emergency reserves to help cool prices. In an interview cited by The Times of India, Trump said reducing some of the reserve would bring prices down.
The International Energy Agency said its member countries had agreed to release 400 million barrels from emergency reserves, which the report described as the largest coordinated release ever. Japan said it could begin releasing oil from its reserves as early as Monday, while Germany also announced plans to release supplies, though it did not give a timeline.
Gulf resilience remains in focus
Even with oil soaring and shipping routes under pressure, HSBC said it remains confident in the long-term outlook for Gulf Cooperation Council economies. Georges Elhedery, the bank’s chief executive, said HSBC remains “steadfast” in its confidence in the GCC and in the region’s long-term strength, resilience and promise.
That confidence rests on more than oil income alone. The report said analysts and banking officials point to the GCC’s diversified economies, fiscal reserves, and ongoing investment in financial hubs such as Dubai, Abu Dhabi and Riyadh as reasons the region may be more resilient than many others during geopolitical shocks.
The same article said the Gulf remains a critical hub connecting Asia, Europe and Africa, especially for energy shipments and financial flows. It also said the Dubai International Financial Centre has reported record levels of new company registrations in recent years, while Abu Dhabi Global Market has seen substantial increases in assets under management.
Markets watch the next move
HSBC’s stance stands in contrast to the immediate stress showing up across markets. The conflict has shaken financial markets, lifted crude prices, and disrupted shipping routes through the Strait of Hormuz, while some institutions have temporarily scaled back office activity and shifted staff to remote work as a precaution.
For Gulf producers, higher oil prices can offer a temporary boost through stronger government revenues. But the broader warning from the reports is that prolonged instability could keep oil elevated, increase inflation fears, and affect industries far beyond the Middle East. For now, the oil market is responding to immediate supply risks, while banks and investors are testing whether the Gulf’s deeper economic strengths can hold through another major regional shock.
