Two oil tankers attacked in Iraqi waters, both Iran and the U.S. are sending signals that "the war will not end soon"

The ongoing escalation of the US-Iran conflict is causing increased turmoil in the energy markets. Iran is using the blockade of the Strait of Hormuz as a means to pressure the US; Trump has stated he wants to “complete the mission,” and neither side has signaled a ceasefire, making the end of this war still uncertain.

According to CCTV News, early on the 12th local time, officials at a southern Iraqi port reported that two foreign oil tankers were attacked and set on fire within Iraqi territorial waters. At least one person was killed, 38 crew members were rescued, and Iraq immediately suspended operations at its oil ports.

Following the attack, oil prices rose nearly 9% on Wednesday and continued to climb during Asian trading hours, with Brent crude around $100 per barrel.

Previously, the Iranian military warned that they are “prepared for oil prices to rise to $200 per barrel,” while the US announced it would release strategic oil reserves to stabilize prices. The game of chess between the two has extended from the battlefield to the energy markets.

Oil Tanker Attacks and Iraq’s Ports Forced to Halt Operations

The two attacked tankers are the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros. The attacks occurred near Zubayr Bay on the western coast of Umm Qasr Port, about 50 kilometers south of the southern Iraqi port city of Basra.

According to CCTV News, early on the 12th local time, Iraqi port officials reported that two foreign oil tankers were attacked and set on fire within Iraqi waters. The attack took place at Umm Qasr Port, located about 50 kilometers south of Basra in Zubayr Bay. Preliminary investigations suggest that a speedboat loaded with explosives carried out the attack on the tankers.

Bloomberg reports that the Iraq National Oil Sales Organization (SOMO) stated that Safesea Vishnu was leased by a company contracted with SOMO, while Zefyros was carrying condensate produced by Basra Natural Gas Company, scheduled to load an additional 30,000 tons of petrochemical raw materials at the Hall Zubayr port before March 12. Following the attack, Iraq’s Oil Ports Corporation announced a suspension of port operations, though commercial port activities remain unaffected.

Trump: “Complete the Mission,” No Premature Withdrawal

At a campaign-style rally in Kentucky, Trump stated that the US has “won” this war but does not want to have to return to the battlefield every two years.

According to CCTV News and other foreign media such as The Independent, on March 11 local time, US President Trump said that US forces have sunk 28 Iranian mine-laying ships in the Strait of Hormuz. Trump claimed that the US has “won” the war against Iran but needs to “finish the last job.”

Meanwhile, US and Israeli officials said their goal is to end Iran’s ability to project power abroad and to destroy its nuclear program. An Israeli military official said that many Iranian targets remain, including ballistic missile and nuclear-related facilities.

Iran: The Strait of Hormuz is “Undoubtedly” Under Our Control, Prepared for Oil Prices to Rise to $200

Iranian military spokesperson stated on Wednesday that the Strait of Hormuz is “undoubtedly” under Iranian control. There are currently no signs that ships can pass safely through this critical waterway — which carries about one-fifth of global oil transportation.

According to CCTV News, Iran warned that if attacks on its energy infrastructure continue, Tehran may retaliate against regional energy facilities, and oil prices could rise to $200 per barrel.

Iran also announced plans to attack banks doing business with the US or Israel and urged people in the Middle East to stay at least 1,000 meters away from banks. Previously, a bank office in Tehran was attacked overnight.

Energy Markets Under Pressure as Parties Compete to Respond to Supply Disruptions

The International Energy Agency (IEA) has released 400 million barrels of oil from global strategic reserves to mitigate the most severe oil supply shock since the 1970s — the largest strategic reserve release in history. US Energy Secretary Chris Wright stated that Trump has authorized the release of 172 million barrels from the US Strategic Petroleum Reserve starting next week.

Trump said that the IEA’s decision “will significantly lower oil prices.” However, the pace of reserve releases among IEA member countries varies, and the total release only accounts for a small portion of normal supply through the Strait of Hormuz.

IG analyst Tony Sycamore commented that this oil tanker attack “seems to be a direct and forceful response by Iran to the IEA’s announcement last night of a large-scale release of strategic reserves to stabilize runaway oil prices.” The G7 countries — the US, Canada, Japan, Italy, the UK, Germany, and France — have agreed to explore options for escorting ships to ensure their safe passage in the Gulf region.

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