Global oil prices climbed sharply on Thursday, with Brent crude oil rising above $100 per barrel, as escalating tensions in the Middle East and fresh attacks linked to Iran overshadowed a record emergency oil release by the International Energy Agency (IEA).
The spike comes as the conflict involving Israel and the United States against Iran entered its third week, with Tehran intensifying retaliatory strikes across the Gulf region.
Oil reserves release fails to calm markets
The IEA announced on Wednesday that member countries had agreed to release 400 million barrels of crude oil from strategic reserves, the largest coordinated stockpile release in the agency’s history.
About 172 million barrels of the total supply will come from the United States.
However, the move failed to ease market concerns as fears grew over potential disruptions to shipping through the Strait of Hormuz—a critical global energy corridor through which roughly 20 percent of the world’s oil supply passes.
Reports indicate the route has been effectively shut down as Iran steps up attempts to disrupt energy shipments across the region.
Rising attacks across the Gulf
Regional tensions escalated further after two oil tankers were reportedly struck in Iraqi waters, while authorities in Bahrain said Iranian forces targeted fuel storage tanks.
Meanwhile, Saudi Arabia said it intercepted drones heading toward the Shaybah oil field, raising fears of broader disruptions to global energy production.
Several oil-producing countries, including Iraq and Kuwait, have also reportedly reduced output as the crisis intensifies.
Oil prices surge
Amid the escalating tensions, benchmark crude prices soared.
- Brent crude jumped more than 9 percent to reach about $101.59 per barrel.
- West Texas Intermediate (WTI) also surged, climbing to nearly $96 per barrel.
Earlier this week, both oil benchmarks briefly spiked by almost 30 percent, reaching highs close to $120 per barrel.
Market analysts warn that oil prices between $90 and $100 per barrel could become the new normal if the conflict continues.
Global economic concerns mount
Iran has warned that the conflict could escalate into a long war of attrition, threatening global economic stability.
Officials linked to Iran’s Revolutionary Guards warned that economic infrastructure connected to the United States and Israel could become targets if hostilities continue.
Experts also warn that prolonged disruptions in the Strait of Hormuz—an essential route not only for oil but also for a significant share of global fertiliser shipments—could trigger severe economic consequences, particularly for Asia and Europe.
Airlines, markets feel pressure
The rising cost of fuel is already affecting several industries, especially aviation.
Air New Zealand announced it would cancel about 1,100 flights over the next two months as airlines adjust routes and manage soaring fuel costs.
Stock markets across Asia also reacted negatively to the uncertainty, with major indexes in Tokyo, Hong Kong, Shanghai, Sydney, and Seoul falling sharply.
Analysts say investors remain focused on the risk of supply disruptions rather than existing oil stockpiles, warning that releasing reserves cannot fully offset the threat to global oil flows if the conflict escalates further.
