Crude oil markets remain highly volatile as supply concerns linked to the Middle East conflict continue to dominate sentiment. On Wednesday, crude futures closed at $91.98/bbl for Brent and $87.25/bbl for WTI, marking daily gains of more than $3–4 per barrel, although still significantly below Monday’s peaks above $100/bbl.

Earlier, the International Energy Agency (IEA) agreed to release a record 400 million barrels of oil from emergency reserves in an attempt to stabilize global energy markets following severe supply disruptions triggered by the ongoing Iran conflict.

Brent surges above $100 on renewed supply fears

Despite the planned emergency stock release, markets remain tense as fresh disruptions across the Middle East intensify fears of a broader supply shock.

According to Bloomberg, two crude tankers were hit in Iraqi waters, forcing the suspension of the country’s oil terminal operations. At the same time, vessels were ordered to leave the Mina Al Fahal port in Oman as a precautionary measure. The terminal normally handles exports of around 1 million barrels per day of Omani crude.

Amid these developments, Brent crude surged as much as 10% during Thursday’s intraday trading, briefly moving back above the $100/bbl threshold before easing slightly. At the time of writing, Brent was trading at $100.40/bbl, while WTI stood at $94.46/bbl, reflecting ongoing market volatility.

Oman’s Salalah port suspends container operations

The latest incidents point to an escalation in retaliatory attacks across the region, raising concerns that the conflict could expand and disrupt additional export routes.

The evacuation of the Mina Al Fahal terminal, located outside the Strait of Hormuz, highlights how the crisis is increasingly threatening alternative supply routes for Middle Eastern oil. Analysts warn that prolonged disruptions to Omani exports could significantly heighten global supply risks.

The evacuation order followed drone attacks on several Omani ports on Wednesday. According to the state-run Oman News Agency, drones struck fuel storage tanks at Salalah Port, while other drones were intercepted.

Following the incident, Salalah Port suspended container and general cargo operations, although other ports in Oman continue to operate normally, according to Inchcape Shipping Services.

With geopolitical tensions escalating and physical disruptions spreading across key energy infrastructure, analysts expect continued volatility in global oil markets in the near term.

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