Iraq suspended oil loadings at the Basrah export terminal following a drone attack on a tanker, disrupting crude exports from the region. The incident highlights the vulnerability of critical energy infrastructure to security threats in the area.

Impact on Operations

The suspension affects the flow of oil from one of Iraq's key export terminals. Operations were halted as a precautionary measure following the attack, which targeted a vessel involved in the loading process.

Incident Details

The disruption comes amid heightened tensions in the region, posing risks to the stability of oil supplies. Authorities are expected to assess the situation before resuming full operations.

President Donald Trump declared that oil is flowing "like never before" due to United States military efforts keeping the Strait of Hormuz open, while market data reveals that approximately 10% of global refining capacity is offline. This supply shortage has driven refining margins to record highs, with the 3-2-1 WTI refining margin hitting $59 per barrel, nearly tripling since the beginning of 2026. The announcement comes alongside a "FULL Blockade" on Iranian ships and claims of "MASSIVE" trade deals from Gulf States to replace a 20% United States Reimbursement Fee.

Military Action and Gulf Deals

Trump credited military leadership, including Secretary of War Pete Hegseth and Chairman of the Joint Chiefs of Staff Dan Caine, for securing maritime routes. The Strait of Hormuz remains open to all vessels except those associated with Iran, which Trump cited for its "lying, violent, malicious leadership." To counter Iran, Trump ordered a blockade explicitly targeting ships arriving at or departing from Iranian ports, as well as those carrying Iranian cargo. Additionally, Trump stated he is replacing the reimbursement fee with major "Trade and Investment Deals" from Gulf States, expected to bring factories and equipment to the U.S. and create "millions of High Paying AMERICAN Jobs."

Refining Capacity Crisis

Despite assurances of freely flowing oil, factors such as the Iran War, attacks on Russian refineries, and reduced fuel exports have tightened the global supply chain. An estimated 8 million barrels per day—roughly 10% of global refining capacity—is currently offline. This supply shortage has kept prices for gasoline, diesel, and jet fuel elevated, even as crude oil trades approximately $40 per barrel below its March peak. Oil refiners are currently enjoying "historic profits" due to this severe capacity shortage.

Market Performance

Crude Oil WTI futures were trading higher by 0.47% to hover around $79.71 per barrel, while Brent Oil Futures were trading higher by 0.70% to hover around $85.32 per barrel. Major U.S.-listed oil refiners have seen significant stock performance gains recently due to the tightening global refining capacity and historic processing margins.