The conflict between the United States and Iran intensified Thursday with fresh attacks on oil tankers in Gulf waters and Iranian drone incursions into Azerbaijan, raising concerns the crisis could engulf additional oil-producing nations in the region.
An explosives-laden remote-controlled Iranian vessel targeted a crude oil tanker flying under the Bahamas flag while it was anchored near Iraq’s Khor al Zubair port, preliminary reports indicate. Meanwhile, a second tanker positioned off Kuwait’s coast began taking on water and leaking oil following a massive blast on its port side.
Since hostilities erupted Saturday between the United States, Israel and Iran, nine ships have been targeted in attacks. Iran fired a barrage of missiles toward Israel early Thursday and deployed drones into Azerbaijan, wounding four individuals.
The growing violence follows Washington’s rejection of a proposal to cease American strikes and coincides with the emergence of Iran’s deceased supreme leader’s son as a leading candidate for succession, indicating Tehran shows no signs of yielding to international pressure.
Ship-tracking data from MarineTraffic reveals approximately 200 vessels, including oil and liquefied natural gas carriers plus cargo ships, remain anchored in open Gulf waters near major producing nations. Hundreds more ships sit stranded outside the Strait of Hormuz, unable to reach their destination ports. This critical waterway handles roughly one-fifth of global oil and LNG shipments.
BP removed international personnel from Iraq’s Rumaila oil facility after two unidentified drones touched down within the field boundaries, Iraqi oil industry sources reported. Baghdad has slashed daily oil output by nearly 1.5 million barrels as storage capacity reached its limit and tanker loading became impossible, officials confirmed to Reuters.
Energy markets responded sharply Thursday, with oil prices climbing approximately 3% and extending their surge to more than 14% since Saturday’s conflict onset. US-Israeli military operations against Iran have severely disrupted Middle Eastern supply chains.
European natural gas benchmark prices jumped over 5% Thursday, reaching 51.30 euros per megawatt-hour and climbing roughly 50% for the week. Russian President Vladimir Putin declared his nation could immediately cut off gas deliveries to Europe amid the energy price volatility stemming from the Iranian crisis.
Qatar, responsible for 20% of worldwide LNG production, suspended gas operations earlier this week due to the ongoing conflict. Major alternative suppliers including the United States and Australia possess minimal excess capacity to compensate for the supply shortage, according to industry analysis and Reuters data.
The European Union faces increased risks and costs in replenishing gas reserves during upcoming months due to the Iranian conflict and LNG supply disruptions. The bloc continues importing some Russian gas while planning to terminate pipeline deliveries by late 2027 and prohibit new short-term LNG agreements starting late April 2026.
Asian energy importers experienced additional strain from Middle Eastern supply interruptions. China instructed refineries to avoid signing new fuel export agreements and attempt canceling existing shipment commitments, multiple informed sources revealed Thursday.
