Oil Prices Jump As Iran Celebrates Attacks On Oil Tankers

Oil prices jumped Thursday morning to over $100 per barrel as Iran continued striking ships throughout the region.

The global benchmark Brent crude climbed above $100 early Thursday morning for the first time since Monday before slipping slightly to $97.81. The spike came as Iranian attacks on ships in the Strait of Hormuz and Persian Gulf disrupted the flow of oil in the region.

At least two oil tankers were struck off the coast of Iraq on Wednesday by projectiles, according to the shipping monitoring group United Kingdom Maritime Trade Operations. Crews on both tankers were evacuated as fires broke out.

Iran reportedly took credit for attacking one of the tankers, claiming the ship “disobeyed and ignored” commands. Iran is suspected of attacking the other tanker, according to Iraqi officials.

A video released by the Iranian Revolutionary Guard Corp featured a man celebrating the attack, the New York Post reported.

“Allah is the greatest! The destruction of an American tanker in the northern district of the Persian Gulf! I obey you Khamenei! Hail be the Islamic Republic of Iran! Soldiers of the Islamic Revolutionary Guard Corps Navy!” the man said.

The attacks prompted both Iraq and Oman to close off oil terminals for security purposes.

The disruption has caused gas prices to rise significantly in the United States. The national average on Thursday was $3.59 per gallon compared to $2.94 one month ago, according to AAA.

President Donald Trump said Wednesday night that the United States would tap into the Strategic Petroleum Reserve to help lower energy costs amid the war.

“We’re going to be doing that very quickly and then will fill it up. Will fill up our reserves,” Trump said.

Energy Secretary Chris Wright said that around 172 million barrels of oil from the strategic reserve would start to be released next week.

When asked if the Treasury Department would begin purchasing oil futures to help bring down costs, Trump said he was focused on winning the war with Iran.

“They are pretty much at the end of the line. Doesn’t mean we’re going to end it immediately, but they are. They’ve got no navy, they’ve got no air force,” Trump said. “They have no systems of control. We’re just riding free range over their country.”

Trump has previously suggested that the Navy might be used to escort oil tankers through the Strait of Hormuz.

“We’re going to look very strongly at the straits. The straits are in great shape. We’ve knocked out all of their boats,” he said Wednesday. “But they have some missiles, but not very many. I think we’re in very good shape.”