$100 Oil Shock: Prices Surge Despite Record Reserve Release
Oil prices top $100 despite a historic reserve release by major nations. The global oil market remains volatile as Iran tensions threaten supply routes.
Oil prices continued to rise on Thursday despite major countries agreeing to release record amounts of oil from their emergency reserves in an attempt to mitigate the impact of the Iran war.
Brent crude rose nearly 9% to above $100 ($74.79) per barrel in Asian trading, even after all 32 members of the International Energy Agency (IEA) agreed to release 400 million barrels in response to supply concerns.
On Wednesday, Iran warned that oil prices could reach $200 per barrel as it intensifies attacks on ships in the Strait of Hormuz, a key waterway for energy shipments.
A spokesman for the Islamic Revolutionary Guard Corps (IRGC) said any ship belonging to the US, Israel, or their allies would be targeted.
"You won't be able to artificially lower the price of oil. Expect oil at $200 per barrel," the spokesman said.
"The price of oil depends on regional security, and you are the main cause of insecurity in the region."
This narrow shipping route is vital to the global economy as about a fifth of the world's energy supply typically passes through it.
IEA members account for about two-thirds of global energy production and consumption.
The release of reserves is more than double the previous IEA record, which came after Russia's invasion of Ukraine in 2022.
Global oil markets have been highly volatile since the US and Israel launched airstrikes on Iran on February 28, with Brent crude reaching nearly $120 per barrel earlier this week.
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According to the American Automobile Association, the average price of gasoline in the US on Tuesday exceeded $3.50 per gallon.
Many Asian countries, which rely heavily on energy from the Middle East, have been particularly hard hit.
Long lines were seen at petrol stations in the Philippines, Thailand, and Vietnam this week as people rushed to refuel. Thai authorities have asked staff at most government agencies to work from home to conserve energy. Officials are also being barred from non-essential foreign travel.
The Philippines has also implemented a four-day work week to help reduce energy use for its government.
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