A major fire broke out on the oil tankers Zefyros and Safesea Vishnu in Iraqi waters near Basra in the Persian Gulf. The Iraqi port authorities reported that at least one person has died from the incident while 38 others were rescued from the flames. Iran has claimed responsibility for the attack and indicated that it was carried out using underwater drones, introducing an alarming geopolitical element to the situation.

The tankers were loaded with Iraqi oil, with one flagged in the Marshall Islands and owned by a U.S.-based company, while the other was flagged in Malta and owned by a Greek firm. Following the fire and attack, crude oil prices surged dramatically, with prices climbing nearly 7% to approach $100 per barrel. The prices have shown considerable volatility in the hours after the attack, fluctuating between $96 and $99.

This incident not only raises concerns about maritime security in a volatile region but also has immediate implications for global oil markets. The geopolitical tensions surrounding oil transportation routes in the Persian Gulf are likely to escalate, impacting supply chains and contributing to further fluctuations in oil prices, which could have broader economic repercussions worldwide.