Tensions between the United States and Iran continue to escalate, intensifying volatility in energy markets. Iran is using the blockade of the Strait of Hormuz as a means to pressure the US, while President Trump has stated his intent to "finish the job." Neither side has shown signals of ceasing hostilities, indicating the end of this conflict remains distant.

According to reports, early on the 12th local time, officials at a southern Iraqi port stated that two foreign tankers were attacked and caught fire within Iraqi territorial waters. The incident resulted in at least one death, with 38 crew members rescued. Iraq subsequently suspended operations at its oil terminals.

The attack drove oil prices up by nearly 9% on Wednesday, with gains extending into Asian trading hours. Brent crude was quoted at around $100 per barrel.

Iran's military had previously warned to "be prepared for oil prices to reach $200 per barrel," while the US announced the release of strategic petroleum reserves to stabilize prices. The confrontation between the two nations has now extended from the battlefield to the energy market.

**Tankers Attacked, Iraqi Ports Forced to Halt Operations** The two vessels attacked were the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros. The assault occurred near the port of Umm Qasr, approximately 50 kilometers south of the southern Iraqi city of Basra, along the western coast of the Zubayr Bay.

Preliminary investigations indicate that a speedboat carrying explosives was used in the attack. According to sources, the Safesea Vishnu was chartered by a company under contract with Iraq's State Organization for Marketing of Oil (SOMO), while the Zefyros was carrying condensate produced by the Basra Gas Company. The latter was scheduled to load an additional 30,000 tons of naphtha at Khor al-Zubair port on March 12. Following the incident, Iraq's General Company for Ports announced a suspension of oil terminal operations, although commercial port activities remain unaffected.

**Trump: "Finish the Job," No Early Withdrawal** Speaking at a campaign-style rally in Kentucky, President Trump claimed that the United States has already "won" the war but emphasized the need to "complete the final tasks" to avoid returning to the conflict repeatedly.

US and Israeli officials have stated that their objective is to end Iran's ability to project power beyond its borders and dismantle its nuclear program. An Israeli military official noted that numerous Iranian targets, including ballistic missiles and nuclear-related facilities, remain on the list for potential strikes.

**Iran: Strait of Hormuz "Undoubtedly" Under Our Control, Ready for $200 Oil** An Iranian military spokesperson stated on Wednesday that the Strait of Hormuz is "undoubtedly" under Iran's control, with no current indications that vessels can safely pass through the critical waterway, which handles about one-fifth of global oil shipments.

Iran has also warned that if attacks on its energy infrastructure continue, Tehran may retaliate against regional energy facilities, potentially driving oil prices to $200 per barrel. Additionally, Iran announced it would target banks conducting business with the US or Israel and advised people in the Middle East to stay at least 1,000 meters away from bank buildings, following an overnight attack on a bank office in Tehran.

**Energy Markets Under Pressure, Global Responses to Supply Shock** The International Energy Agency (IEA) has coordinated the release of 400 million barrels of oil from global strategic reserves to mitigate what is being described as the most severe oil supply shock since the 1970s. This marks the largest strategic petroleum reserve release in history. US Energy Secretary Chris Wright stated that President Trump has authorized the release of 172 million barrels from the US Strategic Petroleum Reserve starting next week.

Trump asserted that the IEA's decision "will significantly lower oil prices." However, the pace of reserve releases among IEA member countries has been uneven, and the total volume represents only a fraction of the normal supply flow through the Strait of Hormuz.

An analyst from IG commented that the tanker attack "appears to be a direct and forceful response by Iran to the IEA's announcement of a large-scale strategic reserve release to curb soaring oil prices." The G7 nations—the United States, Canada, Japan, Italy, the United Kingdom, Germany, and France—have agreed to explore options for providing naval escorts to ensure freedom of navigation for vessels in the Gulf region.