Oman, Iraq, Bahrain: How Iran’s Campaign Is Closing Off the Gulf’s Oil Exits

Iran’s systematic targeting of oil export infrastructure across the Gulf is closing off the region’s energy exits one by one, with Oman, Iraq, and Bahrain all experiencing significant disruptions on Thursday as oil prices climbed back toward $100 a barrel. The strategic logic of Iran’s campaign appears to be to demonstrate that it can make the entire Gulf region’s energy infrastructure untenable. Markets are responding to the growing possibility that this crisis will last far longer than initially anticipated.
Oman cleared all vessels from its Mina Al Fahal export terminal — one of the last functional crude export points in the region — following drone strikes on a neighboring port. Iraq suspended all oil exports from its ports after two tankers were struck. Bahrain placed the Muharraq Governorate under shelter-in-place orders following attacks on fuel storage tanks. The Thai vessel Mayuree Naree was hit near the Strait of Hormuz, with three crew members reported trapped.
Brent crude gained 9% Thursday to touch $100.29 before settling at around $98. West Texas Intermediate rose 8.6% to $94.75. The price has risen from $60 at the year’s start to a peak of $119 this week. Iran’s military warned of $200-per-barrel oil.
The IEA released 400 million barrels of emergency crude from 32 member nations, and the US contributed 172 million barrels from its Strategic Petroleum Reserve. These measures helped temporarily but failed to address the fundamental problem: the exits through which Gulf crude normally flows to world markets are being shut down faster than alternatives can be found.
Goldman Sachs raised its Q4 2026 Brent forecast to $71 per barrel. Deutsche Bank warned of stagflation risks. Japan’s Nikkei fell 1.6%, South Korea’s Kospi lost 1.2%, and European gas prices climbed 7.7%.