Oil prices rise toward $85 as markets await a possible historic release of emergency reserves, while the Iran war disrupts shipping in the Strait of Hormuz.
WEBDESK – Act Global Media
Global oil prices climbed on Wednesday as traders closely monitored the ongoing conflict involving Iran and the United States, alongside discussions about a potential historic release of strategic petroleum reserves.
The international benchmark Brent crude rose about 2 percent to around $89.49 per barrel, while US crude oil climbed roughly 2.4 percent to $85.44, after briefly reaching higher levels earlier in the session.
Markets await major emergency oil release
The rally comes as the International Energy Agency considers releasing the largest volume of emergency oil reserves in its history.
According to reports, member countries could release more than 100 million barrels of oil during the first month in an effort to stabilize markets shaken by the war.
The proposal would exceed the 182 million barrels released globally in 2022 after Russia’s invasion of Ukraine.
IEA Executive Director Fatih Birol said the agency and its member states are evaluating all options to address rising supply risks.
Member nations currently hold over 1.2 billion barrels of public emergency oil reserves, with an additional 600 million barrels stored by industry under government mandates.
Japan plans independent reserve release
Meanwhile, Japan is preparing to independently release part of its oil reserves.
Prime Minister Takaichi Sanae said Tokyo could begin releasing stockpiled crude as early as next week, according to local broadcaster NHK.
The move is aimed at easing market pressure as energy supplies from the Middle East face disruptions.
Strait of Hormuz disruption drives market fears
Energy markets have been rattled by attacks on commercial vessels and rising military tensions near the Strait of Hormuz.
The narrow waterway normally carries about one-fifth of the world’s oil supply, making it one of the most critical energy chokepoints in the world.
Shipping traffic through the area has slowed sharply after several vessels were attacked, and Iran warned it could halt oil exports from the region.
Risk of further price spikes
Analysts say the direction of oil prices will depend largely on how long the conflict lasts.
Energy strategist Sasha Foss said emergency oil releases may provide only temporary relief if shipping disruptions continue.
Market experts warn that if the conflict escalates or the Strait of Hormuz remains blocked, oil prices could surge above $100 per barrel, with some forecasts even suggesting levels as high as $120 in a prolonged crisis.
For now, investors remain focused on geopolitical developments and whether strategic reserves will be released quickly enough to calm global energy markets.
