Amid the U.S.-Israel conflict with Iran, a ship is illuminated by flames from a burning ship after an Iranian explosives-laden boat appears to have attacked and set ablaze two fuel tankers in Iraqi waters, according to a port, maritime security and risk company.This screenshot was taken from a distributed video released on March 12, 2026.
Iraq Port Media Office | Reuters
Overnight, three more foreign ships were attacked in the Persian Gulf, authorities said, as attacks on ships passing through or near the strategic Strait of Hormuz intensified.
The incident comes after three ships were damaged in Gulf waters on Wednesday, with Iran warning that oil prices could rise to $200 per barrel.
The UK Maritime Trade Operations (UKMTO) Center said on Thursday that a container ship was struck by an unknown projectile about 35 nautical miles north of Jebel Ali, a major port city near Dubai in the United Arab Emirates. The incident caused a small fire on board, but all crew members were reported to be safe.
Earlier, two foreign oil tankers were left on fire in Iraqi waters after a collision near Umm Qasr port near the city of Basra.
At least one person was killed in the attack and 38 crew members were rescued from the ship, multiple media outlets reported, citing Iraqi port officials. Iraq’s port general company was not immediately available for comment when contacted by CNBC.
On March 12, 2026, a foreign tanker carrying Iraqi heavy oil caught fire and was damaged in Iraqi territorial waters after an unidentified attack targeted two foreign tankers near Basra, Iraq, according to Iraqi port officials.
Mohamed Ati | Reuters
Shipping traffic through the Strait of Hormuz has virtually stopped since the United States and Israel began airstrikes against Iran on February 28. Iran has retaliated by targeting ships attempting to pass through the strait, with several incidents reported in recent days.
This narrow waterway is an important maritime corridor connecting the Persian Gulf and the Gulf of Oman. Typically, about 20% of the world’s oil and gas passes through it.
Attacks on commercial ships in the Gulf have raised concerns that the economic shock will be prolonged.
“Be prepared for oil prices to reach $200 a barrel, because oil prices depend on regional security and destabilize regional security,” Ebrahim Zolfakari, spokesman for Iran’s military command, said on Wednesday, according to Reuters.
“A tool to oppress the enemy”
Oil prices soared on Thursday, shortly after Iran’s new supreme leader Mojtaba Khamenei said the Strait of Hormuz must remain closed as a “means to put pressure on the enemy.” Mojtaba is the son of Ayatollah Ali Khamenei, who was killed by the US and Israel in the initial offensive of the war.
In his first public remarks since taking office, Mojtaba Khamenei also said that all US military bases in the Middle East should be closed immediately as they could be attacked.
international benchmark brent crude oil futures May deliveries traded 8% higher at $99.35 a barrel; West Texas Intermediate Futures April deliveries rose 8.2% to $94.52.
The IEA announced Wednesday that its 32 member countries will release 400 million barrels of oil from emergency stockpiles, marking the largest coordinated depletion since the agency was established after the 1973 oil embargo.
—CNBC’s Lee Ying Shan contributed to this report.
