Oil tanker engulfed in flames as Iran attacks third ship in Gulf with oil price surging past $100 a barrel
Iraq has rescued more than 20 crew members from attacked foreign oil tankers overnight.
Iran has warned that oil could reach $200 a barrel as its attacks on ships intensify in the Middle East.
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Overnight, two ships were struck off the coast of Iraq, near the port of Umm Qasr, killing one person and injuring 38 others, the head of the General Company for Iraqi ports said.
The explosions come after three cargo vessels were hit by “unknown projectiles” in the Strait of Hormuz on Wednesday.
Iraq rescued more than 20 crew members from the two vessels, which both caught fire in the attacks and are still ablaze, according to Farhan al-Fartousi, Iraq's director general of the General Company for Ports.
Following the attacks, the country's oil ports have reportedly "completely stopped operations", while commercial ports continue to operate.
Off the UAE, another container ship was struck by a projectile, the UK Maritime Trade Operations Centre has reported.
The incident happened around 35 nautical miles north of Jebel Ali, a large commercial port. It caused a fire on board, but all the crew are said to be safe.
A total of 13 ships have been attacked in and around the Arabian Gulf, the Strait of Hormuz and the Gulf of Oman between 28 February and 11 March, UK Maritime Trade Operations (UKMTO) reported yesterday.
Due to the intensifying conflict, oil prices have continued to rise despite major countries agreeing to release a record amount of oil from their emergency reserves.
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A massive fire broke out on an oil tanker in the Persian Gulf,pic.twitter.com/PrNdX8rRu1
— Muhammad Noman (@Mnoman1984Noman) March 12, 2026
On Wednesday, the International Energy Agency said it would release 400 million barrels of oil onto global markets, including 13.5 million from the UK, to prevent short-term market disruption.
Prices reached near four-year highs above 100 US dollars a barrel on Monday, before falling on Tuesday as US President Donald Trump signalled the war could soon be over.
Speaking in Kentucky yesterday, President Trump claimed that US-Israeli strikes in the Middle East, dubbed Operation Epic Fury, would reduce the cost of fuel, despite rising prices.
Mr Trump said the war will "substantially reduce oil prices" and reduce the threat to the world.
"Our military has virtually destroyed Iran," he said.
"We won," the president said to his crowd of supporters. "In the first hour, it was over."
Meanwhile, oil companies are being told to prepare for "catastrophic consequences" caused by the conflict.
Amin Nasser, the CEO of Aramco, said: "While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced.
"There would be catastrophic consequences for the world's oil markets, and the longer the disruption goes on, the more drastic the consequences for the global economy."
President Trump previously threatened Iran with "death, fire, and fury" if they stopped the flow of oil in the Strait.
He wrote on Truth Social: "If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.
"Additionally, we will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!"
Prime Minister Sir Keir Starmer said the Government will "step in" if companies exploit rising oil prices amid the Middle East conflict.
Prices have jumped after Iran launched retaliatory strikes following attacks by the US and Israel, pushing up energy costs and sending home heating oil bills soaring.
Ahead of a visit to Northern Ireland on Thursday, Sir Keir acknowledged that "global instability has real impacts on the lives of working people across the UK".
He said: "Let me be clear, we will not tolerate profiteering or unfair practices.
"If companies fleece customers or rip them off, we will not hesitate to step in, and that includes on regulation."
On Monday, drivers were discouraged from taking ‘non-essential’ car journeys in a bid to save fuel.
RAC head of policy Simon Williams said: "Average petrol and diesel prices have rocketed in the last week and are unfortunately likely to keep on rising, so the situation for UK drivers is looking increasingly bleak.
"Unleaded is almost certainly going to reach an average of 140p in the next week or so, while diesel looks highly likely to climb to at least 160p a litre.
"We encourage drivers to continue filling up as normal but to shop around for the best prices."