Oil Prices Surge 8%, Brent Hits $100 as Iraq Halts Terminal Operations After Tanker Attacks

Mumbai | 20 May 2026 

International crude oil prices surged on Thursday morning following attacks on two oil tankers in Iraqi territorial waters, which led to the suspension of operations at the country’s oil terminals.

The sharp rise in prices came despite the International Energy Agency (IEA) announcing the release of 400 million barrels of crude from member stockpiles — the largest such release in the agency’s history.

At 8:25 AM, the April contract of benchmark Brent crude on the Intercontinental Exchange was trading at $100.09 per barrel, up 8.82%. The April contract of West Texas Intermediate (WTI) on the NYMEX rose 8.85% to $94.68 per barrel.

Tanker attacks trigger disruption

Two tankers carrying Iraqi fuel oil were struck by unidentified attackers in Iraq’s territorial waters, setting them on fire. An initial investigation by Iraqi security officials suggested that explosive-laden boats originating from Iran had hit the two tankers.

Following the incident, Iraq suspended operations at all its oil terminals.

Iraq is one of the largest oil suppliers globally and has been the second-largest oil supplier to India in recent years, making the disruption particularly significant for global energy markets.

The escalation comes against the backdrop of a warning from Iran on Wednesday that oil could climb to $200 a barrel as regional tensions intensified with attacks on merchant ships.

Ebrahim Zolfaqari, spokesperson of Iran’s military command, said: “Get ready for oil to be $200 a barrel, because the oil price depends on regional security which you have destabilized.”

IEA steps in with record release

In an effort to ease global supply pressures, member countries of the International Energy Agency on Wednesday agreed to release 400 million barrels of oil from their reserves — the largest-ever coordinated stockpile release by IEA members.

India’s petroleum ministry issued a statement late on Wednesday evening welcoming the move.

“India, as an Associate Member of the International Energy Agency (IEA) and an active participant in international energy cooperation, welcomes the IEA’s decision to release emergency oil stocks amid the prevailing supply disruptions,” the ministry said.

“India stands ready to take appropriate measures, as necessary, to support global market stability in alignment with the efforts of the International Energy Agency,” it added.

Implications for India

The disruption is significant for India, which imports nearly 90% of its crude oil requirement, leaving the country highly exposed to swings in global prices.

The Strait of Hormuz, through which a large portion of India’s crude imports flow, continues to be a critical chokepoint in global energy trade.

A report by the United Nations Trade and Development (UNCTAD), titled “Strait of Hormuz Disruptions – Implications for Global Trade and Development”, noted that the strait carries around one-quarter of global seaborne oil trade, along with significant volumes of liquefied natural gas and fertilizers.

“Military escalation in the region has disrupted shipping flows through this narrow passage, raising concerns about ripple effects across energy markets, maritime transport and global supply chains,” the report said.

Outlook

With Iraqi terminal operations suspended, the IEA’s record stockpile release underway, and tensions in West Asia showing no signs of easing, global oil markets are likely to remain volatile in the days ahead. For India — heavily dependent on imported crude and exposed to shipping routes running through the Strait of Hormuz — the developments will be closely watched across both policy and industry.

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