Oman ordered all vessels to leave its main oil export terminal at Mina Al Fahal as a precaution, Bloomberg reported on Thursday. The terminal handles about 1 million barrels per day (bpd) of Omani crude exports. The order followed drone strikes on fuel tanks at Oman’s Salalah Port on Wednesday, with other drones intercepted. Bahrain’s Interior Ministry said on Thursday that Iran targeted fuel tanks at a facility in Muharraq Governorate, one of Bahrain’s four administrative regions.

Oil Prices Surge On Supply Risk

Oil prices rose after the reports. West Texas Intermediate (WTI) was up 7.35% on the day at $93.32 at the time of writing. With crude prices jumping on the news from Oman and Bahrain, we are seeing a significant geopolitical risk premium being added to the market. The evacuation of a terminal handling around 1 million barrels per day creates immediate uncertainty over physical supply. We believe traders should consider buying short-dated call options to capitalize on any further panic-driven price spikes in the coming days. This situation is especially serious given the market’s current tightness. Recent data from early March 2026 showed global commercial inventories sitting at their lowest level in nearly two years, providing very little cushion for supply shocks. This lack of a buffer means that even small disruptions can have an outsized impact on price, supporting a bullish outlook on crude futures for the immediate term. We have seen this scenario before, recalling the market’s reaction in 2022 following the escalation of the conflict in Ukraine. Back then, WTI crude futures surged over 30% in just two weeks, illustrating how quickly prices can move when a major supply region is threatened. This history suggests that selling volatility or taking outright short positions is extremely dangerous until there is more clarity on the actual supply impact.

Trading And Volatility Considerations

The sharp increase in fear will cause a spike in implied volatility, making options contracts more expensive. This makes strategies like buying straddles or strangles appealing, as they profit from large price movements in either direction without needing to guess the ultimate outcome. Traders who expect a large move but are unsure of the direction should find these positions valuable in the current environment. Looking ahead, we will be monitoring tanker traffic data around Mina Al Fahal to see if the evacuation translates into a real, sustained drop in exports. Any statements from major importing nations about potential releases from strategic reserves could also calm the market, as we saw in a smaller-scale event in 2025. If oil flows resume quickly, this price surge may be temporary, creating an opportunity to bet on prices falling back down. Create your live VT Markets account and start trading now.

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