Oil surges after Iran drone strike on Oman Port

March 12, 2026 (MLN): Oil prices surged above $100 per barrel after Iranian drones struck fuel storage facilities at the Port of Salalah, Oman’s largest port, intensifying geopolitical tensions in the Middle East and raising concerns about global energy supply disruptions.

Currently, Brent crude futures went up by $11.93, or 13.54%, to $100.03 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures increased by $7.00, or 8.02%, to $94.25 per barrel by [09:27 am] PST.

According to local media of Oman, drones targeted fuel storage tanks within the port, damaging several facilities in what marks a significant escalation in regional hostilities.

The Port of Salalah is a key energy and shipping hub, and the attack has heightened fears over the safety of oil infrastructure and transport routes in the Gulf.

The United Arab Emirates strongly condemned the strike, describing it as an unprovoked attack and a violation of international law.

In a statement, the UAE’s Ministry of Foreign Affairs expressed full solidarity with Oman and reaffirmed its support for all measures aimed at safeguarding the country’s security, stability, and the safety of its citizens and residents.

The latest escalation comes amid mounting tensions across the Gulf, where attacks on shipping and oil infrastructure have raised concerns about supply disruptions.

Earlier reported that two fuel tankers in Iraqi waters were struck by explosive-laden boats, while Iraqi authorities said oil port operations had been completely halted following the incidents.

Shipping risks have also increased near critical energy routes. Reports indicated that Oman evacuated vessels from its key oil export terminal at Mina Al Fahal as a precautionary measure, while noted that several tankers carrying Iraqi crude were seen burning in Gulf waters near Basra.

The Strait of Hormuz, a crucial maritime passage between Iran and Oman through which a large share of global oil supply flows, has become a focal point of the crisis. Iran’s Revolutionary Guards had earlier warned that crude prices could surge to $200 per barrel if disruptions in the region intensify.

Meanwhile, global policymakers are attempting to stabilize energy markets. The International Energy Agency (IEA) has recommended the release of 400m barrels of crude oil from strategic reserves, the largest coordinated action in the agency’s history, to ease pressure on oil prices amid the ongoing U.S.-Israeli conflict with Iran, as reported by Reuters.

The Paris-based agency said the move had been unanimously approved by its 32 member countries, though the timing and pace of the release will be determined later. As part of the coordinated action, the United States announced plans to release 172m barrels from its reserves starting next week.

Germany’s Economy Minister Katherina Reiche earlier confirmed the proposed 400-million-barrel release and said Germany would participate in the coordinated drawdown, adding that the United States and Japan are expected to contribute the largest volumes.

However, analysts say the effectiveness of the plan will depend largely on the pace of supply injections. If around 100m barrels were released over a month, it would amount to roughly 3.3m barrels per day, significantly smaller than the estimated disruption of around 20m barrels per day linked to the effective closure of the Strait of Hormuz.

Despite the planned emergency reserve release, energy markets remain volatile as traders assess the impact of military developments and potential supply shocks across the Middle East.

The latest drone strike on Oman’s key port has further heightened concerns that continued attacks on oil infrastructure could deepen disruptions and drive crude prices higher.

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