Unleashed with joint US and Israeli air strikes on Iran almost two weeks ago, the war has so far killed around 2 000 people and thrown global energy markets and transport into chaos.

The conflict has spread across the Middle East and prompted plans for a record release of strategic oil reserves to dampen one of the worst fuel shocks since the 1970s.

The United Nations Children’s Fund (UNICEF) said more than 1 100 children had been killed or injured.

At a campaign-style rally in Kentucky ahead of the November midterm elections, in which his Republican party is trailing badly, Trump said the US had won the war but didn’t want to have to go back every two years.

“We don’t want to leave early, do we?” he said on Wednesday. “We’ve got to finish the job.”

Oil prices, which shot up earlier in the week to nearly $120 a ⁠barrel before settling back to around $90, rose nearly 5% on Wednesday and extended gains in Asian trade on Thursday amid renewed fears about supply disruption. Wall Street’s main share indexes fell, and stocks in Asia followed suit.

Iran has made clear it intends to impose a prolonged economic shock, with the spokesperson for Iran’s military command saying in remarks directed at the US on Wednesday: “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised.”

Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters, setting them ablaze and killing one crew member after projectiles struck three merchant vessels in Gulf waters, port officials, maritime security, and risk firms said on Thursday.

“This appears to mark a direct and forceful Iranian response to the
International Energy Agency ‘s (IEA) overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” said Tony Sycamore, Analyst at IG.

Iran also targeted fuel tanks at a facility in Bahrain’s Muharraq, the interior ministry said.

The International Energy Agency, made up of major oil-consuming nations, on Wednesday recommended releasing 400 million barrels from global strategic reserves to dampen one of the worst oil shocks since the 1970s, the biggest such intervention in history.

Trump said the IEA decision “will substantially reduce oil prices as we end this threat to America and the world.”

US Energy Secretary Chris Wright said Trump had authorised the release ⁠of 172 million barrels from the US Strategic Petroleum Reserve from next week.

–Reuters–