Two oil tankers were attacked in Iraqi waters. Both the United States and Iran are sending signals that

# English Translation

Zhao Ying

Source: Wall Street CN

Two oil tankers were attacked and set on fire in Iraqi territorial waters, sending oil prices soaring nearly 9% in a single day with Brent crude approaching $100 per barrel. Iran stated that the Strait of Hormuz is "undoubtedly" under its control, while Trump claimed to have "won the war" yet still needs to "finish the mission." The remarks from both sides seem to indicate that a ceasefire remains far from reach.

The U.S.-Iran conflict continues to escalate, exacerbating volatility in the energy market. Iran is using the blockade of the Strait of Hormuz as a means to pressure the United States, while Trump has stated his intention to "complete the mission." Neither side has signaled a willingness to cease fire, making the end of the war elusive.

According to CCTV News, early on the morning of the 12th local time, officials at a southern Iraqi port stated that two foreign oil tankers were attacked and set ablaze in Iraqi territorial waters. At least one person was killed and 38 crew members were rescued. Iraq immediately suspended operations at its oil ports.

Affected by the attack, oil prices rose nearly 9% on Wednesday and continued their upward trend during Asian trading hours, with Brent crude trading at approximately $100 per barrel.

Iran's military had previously warned to "prepare for oil prices to rise to $200 per barrel," while the United States announced the release of strategic petroleum reserves to stabilize prices. The game of wits between the two sides has extended from the battlefield to the energy market.

## Tanker Attack Forces Iraqi Ports to Halt Operations

The two attacked tankers are the Marshall Islands-flagged *Safesea Vishnu* and the Malta-flagged *Zefyros*. The attack occurred near Umm Qasr Port on the west bank of the Al-Zubair Bay, approximately 50 kilometers south of the southern Iraqi port city of Basra.

Preliminary investigations indicate that the tankers were attacked by a speedboat loaded with explosives. According to Bloomberg, Iraq's State Oil Marketing Organization (SOMO) stated that the *Safesea Vishnu* was chartered by a company under contract with SOMO, while the *Zefyros* was carrying condensate produced by Basra Gas Company and was scheduled to depart for Al-Zubair Port on March 12 to load an additional 30,000 tons of naphtha, a raw material for plastics. Following the attack, Iraq's General Company for Ports of Iraq announced the suspension of oil port operations, though commercial port operations remain unaffected.

## Trump: "Finish the Mission" and Will Not Withdraw Early

Speaking at a campaign-style rally in Kentucky, Trump stated that the United States has "won" the war but does not want to have to return to the battlefield every two years.

According to reports from foreign media such as the UK's *The Independent* on March 11 local time, President Trump claimed that U.S. military forces have sunk 28 Iranian mine-laying ships in the Strait of Hormuz. He asserted that the United States has "won" the war against Iran but needs to "finish the final work."

Meanwhile, U.S. and Israeli officials stated that their goal is to end Iran's ability to project power abroad and destroy its nuclear program. An Israeli military official said there are still numerous Iranian targets yet to be struck, including ballistic missiles and nuclear-related facilities.

## Iran: Strait of Hormuz "Undoubtedly" Under Control; Prepare for $200 Oil

An Iranian military spokesperson stated on Wednesday that the Strait of Hormuz is "undoubtedly" under Iranian control. Currently, there are no signs that ships can safely pass through this critical waterway, which carries approximately one-fifth of the world's oil shipments.

Iran warned that if attacks on its energy infrastructure continue, Tehran may retaliate against regional energy facilities, adding that oil prices could rise to $200 per barrel.

Iran also announced that it will launch attacks on banks conducting business with the United States or Israel and has urged people in the Middle East to stay at least 1,000 meters away from banks. This follows an overnight attack on a bank office in Tehran.

## Energy Market Under Pressure as Parties Respond to Supply Shock

The International Energy Agency (IEA) has released 400 million barrels of oil from global strategic reserves to mitigate the most severe oil supply shock since the 1970s, marking the largest strategic reserve release in history. U.S. Energy Secretary Chris Wright stated that Trump has authorized the release of 172 million barrels from the U.S. Strategic Petroleum Reserve starting next week.

Trump claimed that the IEA's decision "will significantly lower oil prices." However, the pace of reserve releases by IEA member states has been uneven, with the total release accounting for only a small portion of the Strait of Hormuz's normal supply volume.

Tony Sycamore, an analyst at IG, stated that the tanker attack "appears to mark Iran's direct and forceful response to the IEA's announcement last night of a large-scale strategic reserve release to stabilize runaway oil prices." The G7 group—consisting of the United States, Canada, Japan, Italy, the United Kingdom, Germany, and France—has agreed to study plans to provide naval escorts for ships to ensure their free navigation in the Gulf region.

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