Oil prices briefly topped $100 per barrel Thursday as fresh Iranian attacks on Gulf energy targets offset the release of crude from strategic reserves by major economies.
Stock markets extended losses amid fears of prolonged supply disruptions.
The International Energy Agency (IEA) said the Middle East conflict “is creating the largest supply disruption in the history of the global oil market,” after member countries agreed to release 400 million barrels, their largest-ever strategic reserve unlock.
The Strait of Hormuz, through which one-fifth of global crude flows, remains effectively closed due to Iranian retaliatory strikes.
Attacks on two oil tankers off Iraq killed at least one crew member, while a cargo ship caught fire after shrapnel damage.
Brent North Sea crude, the global benchmark, peaked at $101.59 per barrel. West Texas Intermediate hit $94.77.
The IEA reported daily crude production down 8 million barrels, with an additional 2 million barrels of petroleum products affected—about 7.5 percent of global daily supply.
“Energy markets have been rattled by Iranian attacks on shipping in the Persian Gulf,” said David Morrison, analyst at Trade Nation.
“The U.S.’s inability to reopen the Strait of Hormuz highlights the limits of its control.”
Rising oil prices are forcing airlines to adjust. New Zealand’s national carrier will cancel 1,100 flights over two months, while Cathay Pacific added fuel surcharges, and Air France-KLM raised ticket prices.
“The longer oil prices stay elevated, the more damaging the inflation shock will be for the global economy,” said Kathleen Brooks, research director at XTB.
Wall Street and most European and Asian markets fell, while the dollar strengthened on safe-haven demand.
As of 1:30 p.m. GMT, Brent crude was up 8.7 percent at $99.94, and WTI rose 8.6 percent to $94.77.
