Middle East crisis live: Iran steps up campaign to disrupt energy markets as oil price spikes above $100 a barrel
Oil prices top $100 a barrel againCallum JonesOil prices are on the rise again, with the international benchmark Brent crude back above $100 per barrel, as concern over the US-Israel war with Iran intensifies. Asian stock markets are back under pressure, too.In a bid to calm concerns over oil supplies, the International Energy Agency (IEA) ordered the largest release of government reserves in its history on Wednesday. But the announcement was overshadowed by widespread Iranian attacks on energy facilities across the Middle East.Several merchant ships were struck in and around the strait of Hormuz, one of the most important arteries in global trade. Iraq halted all operations at its oil ports after an attack on two nearby oil tankers. Bahrain told residents to stay home after an Iranian attack on fuel tanks in the Muharraq Governorate.Oman has meanwhile shifted all vessels out of its main oil export terminal at Mina Al Fahal after drone strikes at another of its ports, Bloomberg reported, citing sources who received a notice from a port agent.The disruption continues.ShareUpdated at 06.32 CETKey eventsShow key events onlyPlease turn on JavaScript to use this featureDrones strike Kuwait airport, causing material damageKuwait international airport was struck by several drones on Thursday, according to Kuwait News Agency.The drones caused some material damage, but no injuries. It is still unclear who was responsible for the strike.On Wednesday, four people were injured after air defences intercepted two drones near Dubai airport in the United Arab Emirates. Soon after the attack, the Dutch carrier KLM canceled all flights to Dubai up to and including 28 March.ShareUpdated at 09.54 CETThe Israeli military issued an urgent warning on Thursday to the residents of Qasr Naba, a town in Lebanon about 64 kilometres (40 miles) east of Beirut.Israeli forces will be attacking at least one building in the village believed to be Hezbollah military infrastructure, IDF spokesman Avichay Adraee said on X.The warning came shortly after an Israeli strike on central Beirut’s seafront killed at least seven people.ShareOil prices top $100 before dropping back slightlyOil prices topped $100 a barrel on Thursday before falling back as Iran stepped up its attacks on energy infrastructure around the Middle East. The Guardian’s Callum Jones reports that the price of Brent crude – the international benchmark – show up by 9% to $100.29 per barrel on Thursday, despite efforts by governments across the world to allay fears of a sustained supply crunch.That price has since dropped to $98 a barrel, according to the Associated Press.On Wednesday. the International Energy Agency ordered the largest release of government oil reserves in its history in an effort to calm the oil price shock triggered by the conflict.ShareItalian base in Kurdish region of Iraq attacked, says Italian foreign ministerAn Italian military base in the Kurdish region of Iraq was attacked, Italian foreign minister Antonio Tajani said in a post on X.Tajani said he strongly condemned the attack in Erbil, but didn’t say if authorities knew who was responsible for it. He said all soldiers on the base were safe.ShareSummaryIn case you’re just tuning in to our live coverage of the US-Israel war on Iran, here’s a snapshot of the latest key developments. It’s now 10.30am in Tehran, 9am in Beirut and Tel Aviv and 3am in Washington DC.
Iran appeared to have set two tankers ablaze on fire in Iraqi waters, killing one crew member, as it stepped up strikes on oil and transport facilities around the Middle East.
About 2,000 people have reportedly been killed in the war launched almost two weeks ago, while Unicef said more than 1,100 children had been killed or injured.
Donald Trump said at a rally in Kentucky that the US had won the war but didn’t want to have to go back every two years. “We don’t want to leave early do we? We’ve got to finish the job.”
Oil prices, which shot up earlier in the week to nearly $120 a barrel before retreating, jumped almost 10% back above $100 a barrel in Asian trade on Thursday amid renewed fears about supply disruption.
A spokesperson for Iran’s military command warning in remarks directed at the US: “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised.”
British prime minister Keir Starmer said the government would “step in” if companies exploited rising heating oil prices amid the Middle East conflict.
US intelligence indicates that Iran’s leadership is still largely intact and is not at risk of collapse any time soon, the Reuters news agency reported, citing three sources. A “multitude” of intelligence reports provide “consistent analysis that the regime is not in danger” of collapse and “retains control of the Iranian public”, one of the sources said.
Lebanon said an Israeli strike on central Beirut’s seafront killed at least seven people early on Thursday – another attack in the heart of the capital as Hezbollah launched more missiles at Israel. The Israeli military earlier said it launched a “large-scale wave of strikes” on Beirut’s densely populated suburbs after the Iran-backed militant group fired what the IDF said were “dozens” of rockets.
The International Energy Agency ordered the largest release of government oil reserves in its history – 400m barrels – in a bid to calm concerns over supplies and dampen one of the worst fuel shocks since the 1970s. The US said it would release 172m barrels of oil from its strategic petroleum reserve.
An attack on Iraq’s Basra port early on Thursday killed at least one person and forced authorities to halt operations at all the country’s oil terminals, officials said.
Other reports of Iranian attacks included the targeting of fuel tanks at a facility in Bahrain’s Muharraq and drones striking oil storage facilities at Salalah port, while another container vessel reported being struck near the United Arab Emirates, Kuwait reported a drone hitting a building, injuring two, and Dubai authorities responded to a drone that fell on a building.With news agencies
ShareUpdated at 08.26 CETForeign ministers from the Association of Southeast Asian Nations (Asean) will hold a special meeting on the situation in the Middle East on Friday, a Philippine foreign ministry official has been quoted as saying.Donald Trump has been at pains in recent days to reassure the world that the economic impact of his war on Iran can be contained, but across Asia – the world’s top crude oil importing region – the rhetoric around the ramifications of this conflict is less important than the reality.Asian countries from Pakistan to South Korea have been forced to confront a brewing energy supply crisis.You can read more in this analysis from Callum Jones here:ShareAn Iranian source is denying the country will allow India-flagged tankers to pass through the vital strait of Hormuz, Reuters is reporting.The news agency a little earlier quoted an Indian source as saying Iran would in fact allow such tankers to pass through the strait, a key artery for global oil trade.The regime in Tehran has weaponised geography in retaliation for the attacks by the US and Israel, choking the flow of Middle Eastern crude oil through the strait.Here’s a visual guide explaining why the narrow waterway south of Iran has become such a focal point:ShareUpdated at 07.21 CETHere are some of the latest images coming in from the war in the Middle East.View image in fullscreenSmoke rises as Lebanese civil defence personnel work to extinguish a fire in a building destroyed after an strike in Beirut’s southern suburbs amid an escalation between Israel and Hezbollah. Photograph: ReutersView image in fullscreenAn Iranian missile landing in Israel, as seen from Tel Aviv, Israel. Photograph: Dylan Martinez/ReutersView image in fullscreenCrew members rescued from the fuel tanker Zephyros stand aboard an Iraqi vessel after the tanker was set ablaze in an apparent attack in Iraqi waters, at the Iraqi port of Faw. Photograph: Mohammed Aty/ReutersView image in fullscreenA banner depicts a portrait of new Iranian supreme leader Ayatollah Mojtaba Khamenei as smoke rises from an unknown location in southern Tehran, Iran. Photograph: Morteza Nikoubazl/NurPhoto/ShutterstockView image in fullscreenA member of the Lebanese Civil Defence inspects a destroyed building after an Israeli strike on Beirut’s southern suburbs. Photograph: ReutersView image in fullscreenPeople inspect homes in Haniel, central Israel, damaged by a projectile launched from Lebanon. Photograph: Baz Ratner/APView image in fullscreenPeople gather next to a damaged car at the scene where a drone strike targeted another vehicle in Ramlet al-Baida at Corniche Beirut in the Lebanese capital. Photograph: Khalil Ashawi/ReutersView image in fullscreenBlack soot in Tehran after reported black rain following a strike on fuel tanks. Photograph: Majid Asgaripour/ReutersShareIran will allow India-flagged tankers to pass through the strait of Hormuz, Reuters is quoting an Indian source as saying.More on this soon.ShareIsraeli strike kills seven on Beirut seafront, says LebanonLebanon said an Israeli strike on central Beirut’s seafront killed at least seven people early on Thursday – another attack in the heart of the capital as Iran-backed Hezbollah launched more missiles at Israel.The Israeli military said separately it had carried out strikes on Beirut’s southern suburbs overnight against Hezbollah, which had announced a major new operation against Israel.Agence France-Presse is reporting that local media aired footage showing smoke rising along the seaside road area after the strike in central Beirut, which state-run National News Agency (NNA) said targeted a car.The Israeli strike on Ramlet al-Bayda in Beirut led to an initial toll of seven dead and 21 wounded, the health ministry said.It was the third attack in the heart of the capital since the Middle East war began. Israel has also repeatedly hit the southern suburbs of Beirut, where the Israeli military said on Thursday it had hit 10 Hezbollah targets.The NNA reported on Thursday that Israeli strikes had also hit several towns in southern Lebanon, including Taybeh and al-Sultaniyya as well as Qana, near the city of Tyre.Hezbollah said early on Thursday that it had fired missiles at an Israeli military intelligence base in the suburbs of Tel Aviv.ShareThe US embassy in Muscat says it has lifted its “shelter in place” guidance for the whole country of Oman.It also said in a statement on its website that the embassy “continues to advise sheltering in place if you are located within or near Duqm or within a 100km radius of Salalah and it is unsafe to leave”.
double quotation markTo the extent possible, remain in a secure structure, and stay away from windows.
ShareOil prices top $100 a barrel againCallum JonesOil prices are on the rise again, with the international benchmark Brent crude back above $100 per barrel, as concern over the US-Israel war with Iran intensifies. Asian stock markets are back under pressure, too.In a bid to calm concerns over oil supplies, the International Energy Agency (IEA) ordered the largest release of government reserves in its history on Wednesday. But the announcement was overshadowed by widespread Iranian attacks on energy facilities across the Middle East.Several merchant ships were struck in and around the strait of Hormuz, one of the most important arteries in global trade. Iraq halted all operations at its oil ports after an attack on two nearby oil tankers. Bahrain told residents to stay home after an Iranian attack on fuel tanks in the Muharraq Governorate.Oman has meanwhile shifted all vessels out of its main oil export terminal at Mina Al Fahal after drone strikes at another of its ports, Bloomberg reported, citing sources who received a notice from a port agent.The disruption continues.ShareUpdated at 06.32 CETTom McIlroyThe Australian government has announced a temporary downgrade in the country’s fuel quality standards, a move designed to put an extra 100m litres a month into the system.Federal energy minister Chris Bowen told parliament that in order to assist with putting downward pressure on prices, the government would allow a 60-day change to allow higher sulfur levels in fuel.The petrol supply would be prioritised for regional areas. It would otherwise have been exported to countries overseas.Bowen said:
double quotation markWhile Australian fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand.
The government has been unequivocal – this additional supply must help the people who need it, including farmers, fishers and regional communities.
Bowen has also activated a national coordination mechanism to work with fuel producers and retailers during the growing conflict in the Middle East.ShareUpdated at 05.58 CETNew Zealand mulls car restrictions if fuel supplies run lowOfficials in New Zealand say they are considering using decades-old laws restricting vehicle use if fuel supplies dwindle due to the war in the Middle East.Finance minister Nicola Willis told reporters on Thursday that officials had discussed using legislation introduced to restrict fuel use in the wake of the Iranian revolution in 1979 in response to the crisis.Under those laws, car owners had to nominate one day per week when they would not use their vehicle and faced hefty fines if caught driving. They also allowed the government to authorise the sale of coupons to restrict fuel use, and restrict the amount that could be sold, Agence France-Presse is reporting.The so-called “carless days” were in effect from July 1979 to May 1980.The minister’s comments came as oil prices surged back above $100 a barrel on Thursday.ShareUpdated at 05.50 CETIraq halts oil terminal operations as Iran widens attacks on regional energy sitesAn attack on Iraq’s Basra port early Thursday killed at least one person and forced authorities to halt operations at all the country’s oil terminals, officials said – as Iran stepped up its attacks on the region’s energy infrastructure.Farhan al-Fartousi, director general of the General Company for Ports of Iraq, made the announcement in a statement carried by the state-run Iraqi News Agency on Thursday.He said the attack targeted a ship engaged in a ship-to-ship transfer of oil in the Basra port on the Persian Gulf. He said it remained unclear if the ship was targeted by a flying or seaborne drone or a missile.View image in fullscreenA ship burns after Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters. Photograph: Media Office of Iraqi Ports/ReutersRescuers recovered one dead body and helped 38 others after the attack. Al-Fartousi said commercial ports in Iraq remained open, though the oil terminals had been shut.Meanwhile, Bahrain told residents to stay home after an Iranian attack on fuel tanks.The interior ministry told residents in three parts of Muharraq to “remain in their homes, close windows and ventilation openings as precaution against potential effects of smokes from the fire currently being fought”.And Oman shifted all vessels out of its main oil export terminal at Mina Al Fahal outside the Strait of Hormuz in a precautionary move, Bloomberg News reported.ShareUpdated at 06.03 CETWelcome summaryHello and welcome to our continuing live coverage of the US-Israel war on Iran and its impact on the region, and the world.Iran set ablaze two tankers in Iraqi waters early on Thursday as it stepped up attacks on oil and transport facilities across the Middle East, warning the world should be ready for oil at $200 a barrel – in defiance of President Donald Trump’s claim that the United States had already won the war.Unleashed with joint US and Israeli airstrikes on Iran almost two weeks ago, the war has so far killed about 2,000 people and thrown global energy markets and transport into chaos.At a campaign-style rally in Kentucky, Trump said the US had won the war but didn’t want to have to go back every two years.“We don’t want to leave early do we?” he said on Wednesday. “We’ve got to finish the job.“Oil prices, which shot up earlier in the week to nearly $120 a barrel before settling back to around $90, rose nearly again on Wednesday and extended gains in Asian trade on Thursday amid renewed fears about supply disruption.Here are the other latest developments:
The US will release 172m barrels of oil from its strategic petroleum reserve in a bid to reduce oil prices that have soared due to supply shocks from war, the US energy secretary has said. Chris Wright said the release was part of a broader release of 400m barrels of oil agreed to by the 32-country International Energy Agency earlier in the day.
US intelligence indicates that Iran’s leadership is still largely intact and is not at risk of collapse any time soon, the Reuters news agency reported, citing three sources. A “multitude” of intelligence reports provide “consistent analysis that the regime is not in danger” of collapse and “retains control of the Iranian public”, said one of the three sources familiar with the matter, all of whom were granted anonymity to discuss US intelligence findings.
Two foreign tankers carrying Iraqi fuel oil are in flames after being attacked by Iranian boats laden with explosives, killing one foreign crew member, Iraqi port security officials told Reuters on Wednesday.
Trump said the US was “not finished yet” when asked about the war in Iran. He boasted that the US has hit Iran “harder than virtually any country in history has been hit”, before adding: “We’re not finished yet.” Earlier he had told Axios that the war would end “soon” since the there was “practically nothing left to target” in Iran.
The Israeli military launched a “large-scale wave of strikes” on Beirut’s densely populated suburbs after Hezbollah launched what the IDF said were “dozens” of rockets. The IDF claimed the strikes targeted what it described as “Hezbollah infrastructure” in the Dahieh suburb of southern Beirut. Israel’s renewed bombing campaign across Lebanon and its invasion of border areas with ground troops have killed more than 570 people, according to Lebanese authorities. This includes at least 83 children, according to Unicef. About 750,000 people have been displaced after being forced to flee the violence, sparking a growing humanitarian disaster.
View image in fullscreenA car targeted in an Israeli drone strike in Ramlet al-Baida, Beirut, on Thursday. Photograph: Wael Hamzeh/EPA
The Israeli military said it was prepared to continue its war with Iran for as long as needed. “We as an army are prepared to continue the campaign as long as necessary,” a spokesperson said. Earlier, the Israeli defence minister, Israel Katz, conveyed similar sentiments, saying that the war “will continue without any time limit”.
Iran’s UN ambassador said a UN security council resolution demanding that Tehran stop its “egregious” attacks on Gulf nations was an “injustice against my country” – adding that Iran was the “main victim of a clear act of aggression”. “The decision distorts the facts on the ground and ignores the root causes of the current crisis,” Amir Saeid Iravani said. “The attack on us began with the assassination of the supreme leader and officials, which led to the deaths of thousands of victims.”
Condemning “heinous crimes and lethal aggression” from the US and Israel, Iravani said more than 1,348 civilians have been killed and more than 17,000 injured since Washington and Tel Aviv launched their joint attack on 28 February. More than 19,000 civilian sites – including 16,191 residential homes, 77 medical facilities and 65 schools – had been damaged, he said.
Iran’s president, Masoud Pezeshkian, demanded that reparations and security guarantees be included in any agreement to end the war started by the US and Israel. The Trump administration, meanwhile, has said that Donald Trump will decide when to end the war on Iran, and the US president has demanded Tehran’s “unconditional surrender” before that happens.
Trump evaded a question about the bombing of an Iranian girls’ school that killed at least 175 people, most of them children. A preliminary investigation found that the US is to blame for the strike, according to a report from the New York Times. When asked whether he takes responsibility for the attack, Trump replied: “I don’t know about it.” More on that here.
Oman’s civil defence is working on containing a fire in fuel tanks at the port in Salalah, Oman’s state news agency reported, after drones struck oil storage facilities there.
Qatar, Kuwait and the United Arab Emirates all said they had successfully intercepted Iranian drones and missiles against their territories.
ShareUpdated at 06.26 CET
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