WASHINGTON, Mar 12 (Agencies): US Energy Secretary Chris Wright said on Thursday global oil prices are unlikely to hit $200 a barrel even as crude tankers remained stalled in the Strait of Hormuz and the US and Israeli war with Iran widened.
"I would say unlikely, but we are focused on the military operation and solving a problem," Wright told CNN when asked if prices would reach $200 a barrel - a level prices could hit if the war continues to escalate, an Iranian official said on Wednesday.
Oil prices jumped 6 per cent to nearly $100 on Thursday as two tankers blazed in an Iraqi port after a hit by suspected Iranian explosive-laden boats.
The rise came despite more than 30 countries in the International Energy Agency announcing a day earlier the biggest-ever coordinated drawdown of global oil reserves of 400 million barrels, about 40 per cent of which will come from the US, the world's largest oil producer.
The war has forced Middle East Gulf countries to cut total oil production by at least 10 million barrels per day, about 10 per cent of world demand. The IEA said on Thursday that is the biggest oil supply disruption in the history of the global market.
Meanwhile, the Middle East war has caused the biggest oil supply shock in history, the International Energy Agency warned Thursday, as Iran launched a new wave of attacks against Gulf energy targets that sent prices spiking above $100 a barrel.
Images from Bahrain showed thick smoke rising after a strike on fuel tanks in Muharraq, with residents told to stay inside and close their windows.
Drones caused damage again at Kuwait's international airport, explosions were heard in downtown Dubai, and Saudi Arabia said it had intercepted drones headed towards its Shaybah oil field and its embassy district.
The Paris-based IEA, a world authority on energy markets, said the 13-day conflict had caused the "largest supply disruption in the history of the global oil market", surpassing those of the 1970s.
The Gulf states' total oil output is down by at least 10 million barrels per day and there were "no signs of a de-escalation in hostilities," it added.
With many Gulf states slashing production and oil tankers prevented by Iranian threats and attacks from crossing the crucial Strait of Hormuz, benchmark oil prices have risen between 40-50 per cent since the US and Israel launched attacks on Iran on February 28.
A top Iranian military figure warned on Wednesday that the country could wage a prolonged war that would "destroy" the world economy, while US President Donald Trump insisted that Iran was facing imminent defeat
The US leader, who is under mounting domestic pressure, also cautioned that the military campaign would not end "immediately" despite indicating that US forces were running out of targets to hit in the Islamic republic.
The conflict has rapidly spread across the region, with hundreds killed by Israeli strikes in Lebanon, including at least eight more who died on Beirut's blood-stained seafront on Thursday.
Shipping in and around the crucial Strait of Hormuz remains at a near-standstill, with another three ships attacked in the Gulf off the coast of the United Arab Emirates and Iraq.
A ship near the United Arab Emirates was hit by an "unknown projectile", but all crew were safe, according to an alert from the UK maritime agency on Thursday.
Authorities in Iraq announced overnight a "sabotage" attack on two oil tankers, with at least one crew member from India reported dead.
The Strait of Hormuz, through which a fifth of the world's oil and liquefied natural gas (LNG) passes, lies off Iran and is just 54 kilometres (34 miles) wide at its narrowest point.
Earlier, oil prices soared Thursday, briefly trading above $100, and stock markets extended losses as Iran's attempts to hit supplies in the Middle East offset the release of crude reserves by major economies.
Iran has launched a new wave of attacks against Gulf energy targets, as the International Energy Agency said the Mideast war "is creating the largest supply disruption in the history of the global oil market".
IEA member countries have agreed to unlock 400 million barrels of oil from their reserves-their largest release ever. However the move was unable to overcome fears about the choking of energy supplies, with the Strait of Hormuz-through which a fifth of global crude passes-effectively shut down.
The price of Brent North Sea crude, the international benchmark, peaked at $101.59 per barrel on Thursday. It later pared gains to trade at $97, still a sizeable jump compared with before the start of the conflict 13 days ago.
Oil unlikely to hit $200 a barrel, US energy chief says
Mideast oil shock 'largest' in history as Iran hits new Gulf targets
FE Team | Published: March 12, 2026 22:43:15
Oil unlikely to hit $200 a barrel, US energy chief says
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