Iran’s unrelenting attacks on Mideast shipping and energy infrastructure send oil prices soaring

Iranian Attacks Push Oil Above $100 as Conflict Escalates Across Middle East

Unrelenting Iranian attacks on shipping traffic and energy infrastructure pushed oil prices above $100 a barrel Thursday, as American and Israeli strikes pounded the Islamic Republic with no signs of the conflict abating.

In a series of coordinated strikes, Iran hit a container ship off Dubai’s coast, caused a major blaze near Bahrain’s international airport, targeted Saudi Arabia’s Shaybah oil field with drones, and forced Iraq to halt operations at all its oil terminals after attacking the port of Basra on the Persian Gulf.

These attacks came in direct defiance of a U.N. Security Council resolution passed just a day earlier demanding Iran halt strikes on neighboring Gulf states. The aggressive campaign has effectively paralyzed maritime traffic through the strategic Strait of Hormuz, through which roughly 20% of the world’s oil shipments pass.

Sirens wailed before dawn in Jerusalem as Israel intercepted incoming Iranian missiles, with additional loud explosions heard later in the day during another attack on the city. Israel responded with what it described as a “wide-scale wave of strikes” on Tehran and in Lebanon, where Israeli forces continue targeting Iran-backed Hezbollah militants.

The economic impact has been swift and severe. Brent crude, the international benchmark, surged another 9% to exceed $100 per barrel – representing a staggering 38% increase since hostilities began on February 28 when the United States and Israel launched initial strikes against Iran.

The market reaction reflects growing concern about energy security across the Persian Gulf region, home to several of the world’s largest oil producers. With Iran effectively controlling access to the Strait of Hormuz and targeting oil infrastructure throughout the region, global supply chains face their most significant disruption in decades.

In the UAE, CitiBank announced it would close all but one of its branches due to Iran’s threats to target financial institutions in the region. Other financial firms have reportedly instructed staff to work remotely until further notice, highlighting the widening economic impact beyond the energy sector.

U.S. President Donald Trump showed no signs of de-escalation, promising to “finish the job” despite claiming Iran is “virtually destroyed.” Speaking at an event in Kentucky on Wednesday, Trump made it clear that an early cessation of hostilities was not imminent.

Iranian President Masoud Pezeshkian suggested on Thursday that for the conflict to end, the world would need to recognize Iran’s “legitimate rights,” pay reparations, and offer guarantees against future attacks. Notably absent from public view has been Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei, who hasn’t been seen or issued statements since succeeding his father, Ayatollah Ali Khamenei, killed at the outbreak of the conflict.

The humanitarian toll continues to mount across the region. In Lebanon, an Israeli strike hit a car Thursday in Ramlet al-Bayda, a major seaside tourist area of Beirut where displaced people have sought shelter, killing eight and wounding 31 others according to the Lebanese Health Ministry. Another Israeli attack in Aramoun, a town south of Beirut, killed three more people and wounded a child.

In Tehran, security checkpoints came under attack Wednesday night for the first time, with at least 10 people killed in suspected drone assaults. Neither Israel nor the U.S. military’s Central Command responded to requests for comment regarding these operations.

The Lebanese Health Ministry reports at least 634 people have been killed since fighting began, while the United Nations refugee agency estimates approximately 759,000 people have been internally displaced within Lebanon. Iranian authorities claim more than 1,300 casualties in their country, while Israel has reported 12 deaths. The United States has lost seven soldiers, with another eight suffering severe injuries.

With Iran focusing its strategy on inflicting maximum economic damage globally to pressure the U.S. and Israel into ceasing hostilities, and with those countries showing no intention of backing down, the conflict appears set to continue disrupting global energy markets and deepening the humanitarian crisis throughout the Middle East.