Global oil markets witnessed a sharp surge on Thursday as crude prices jumped amid rising concerns that escalating tensions in the Middle East could disrupt vital energy supply routes.
Benchmark crude prices climbed more than 8 percent during the trading session. Brent Crude briefly touched the $100 per barrel mark after rising about 8.9 percent, while West Texas Intermediate (WTI) surged nearly 8.8 percent to trade close to $95 per barrel.
The spike in prices came despite an unprecedented move by the International Energy Agency (IEA) to release emergency oil reserves in an effort to stabilise the market. The agency announced that its 32 member nations would collectively release around 400 million barrels of crude oil from their strategic reserves the largest coordinated release since the organisation was formed following the 1973 oil crisis.
In a separate step, the United States Department of Energy said it would release 172 million barrels from the country’s Strategic Petroleum Reserve. US Energy Secretary Chris Wright stated that shipments could begin as early as next week and may take about 120 days to complete.
Despite these measures, traders remain concerned that oil shipments could face disruption in the Middle East. Particular attention is focused on the Strait of Hormuz, a narrow but critical waterway through which a large portion of the world’s oil supply passes.
The surge in crude prices also weighed on financial markets. Indian equities opened sharply lower on Thursday, while several Asian markets declined amid reports of additional vessel strikes in the Strait of Hormuz and nearby Iraqi waters.
Analysts warn that prolonged disruptions in the region could tighten global oil supplies, potentially pushing fuel prices higher and intensifying inflationary pressures across the global economy.
