Global crude oil prices have surged above $100 per barrel, even after major economies agreed to release a historic volume of oil from emergency reserves in an effort to calm markets and stabilise supply.
The decision, coordinated by the International Energy Agency (IEA) and supported by 32 member countries, will see about 400 million barrels of oil released from strategic stockpiles. The move is aimed at easing supply pressures created by escalating tensions in the Middle East.
Despite the intervention, oil markets continued to rally, with Brent crude climbing nearly 9% during Asian trading, signalling that traders remain worried about prolonged disruptions to global energy supply.
Much of the uncertainty stems from the ongoing conflict involving Iran, Israel and the United States, which has heightened security risks in the Strait of Hormuz, a strategic shipping route responsible for transporting around one-fifth of the world’s energy supplies.
Iran has warned that attacks on vessels linked to its adversaries could continue in the area, raising fears that oil shipments through the narrow waterway could be severely disrupted. Analysts say such threats are keeping prices elevated despite the release of emergency reserves.
Energy market experts note that while the reserve release is historically significant, it is likely to offer only temporary relief if the geopolitical tensions persist. As long as global supply remains uncertain, oil prices could remain volatile or climb even higher.
The development has raised concerns among governments and businesses worldwide, as higher crude prices typically translate into increased fuel costs, inflationary pressure, and economic strain for oil-importing countries.