Oil price today: Oil prices rose more than 9% on Thursday, rising again above $100 a barrel, as new strikes on energy supplies and infrastructure in the Middle East raised fears of major disruptions, casting a shadow over a record release of crude from strategic reserves aimed at calming markets.Brent crude jumped 9.3% to $100.50 a barrel, while West Texas Intermediate crude rose 8.8% to $94.92 at around 0305 GMT.Earlier in the session, around 0100 GMT, Brent was already up 7.2% to $98.60 a barrel, while West Texas Intermediate crude rose 6.5% to $92.96, as rising tensions in the Middle East continue to rattle global energy markets.
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Concerns about supply disruptions have increased after attacks on oil tankers raised fears that the conflict could affect global crude oil flows.
Videos circulating online showed the ships on fire, while Iraqi media reports attributed the strikes to Iran. The latest attacks come as the conflict entered its thirteenth consecutive day on Thursday, with no clear signs of de-escalation.Exploiting strategic reserves to calm marketsThe rise in oil prices came despite coordinated efforts by governments and energy agencies to increase supply and stabilize global markets.The US Department of Energy said on Wednesday that it will release 172 million barrels of crude oil from the Strategic Petroleum Reserve starting next week.
However, the offer will take time to reach the markets. The ministry said the release “will begin next week” and will take “approximately 120 days for delivery based on planned discharge rates,” according to a post on X’s website.Earlier, US President Donald Trump also indicated that Washington could tap emergency reserves to help bring down prices.“Right now, we will reduce it a little, and that will lower prices,” Trump said in an interview with Local 12 TV in Cincinnati, Ohio, when asked whether he would exploit the US Strategic Petroleum Reserve.The IEA also said its member states agreed to release 400 million barrels of oil from emergency reserves, the largest coordinated release ever.According to the AP, the Paris-based agency will make 400 million barrels of strategic reserves available to members, much higher than the 182.7 million barrels released in 2022 after Russia’s invasion of Ukraine.Other major economies also joined the effort. Japan said it could start withdrawing oil from its reserves as early as Monday, while Germany also announced plans to release supplies, though it did not set a timetable.Conflict with Iran disrupts key oil routeThe price volatility comes as tensions rise in the Middle East following attacks between Iran, the United States and Israel. Iran responded to the US and Israeli strikes that began on February 28, launching attacks on targets throughout the oil-rich Gulf region.The conflict has also led to the closure of the vital Strait of Hormuz, a vital shipping route for the world’s energy supplies.Nearly 20% of global oil trade normally passes through the narrow waterway linking the Persian Gulf to the Gulf of Oman. Due to the escalating conflict and threats of missile and drone attacks, tanker movement through the strait has been severely disrupted.Oil briefly rose above $100Oil prices had already risen earlier this week as fears of supply disruptions dominated the markets.
Brent crude briefly rose to $120 a barrel before falling to around $102 on Monday.The rise came amid reports that Saudi Arabia will cut its production, adding pressure on global supplies already strained by disruption in the Strait of Hormuz.The waterway is one of the world’s most important energy corridors, serving as a major route for the export of crude oil from Gulf producers to international markets.