Oil Prices Climb Above $100 Despite Record Reserve Release Amid Iran War Tensions

By Blessing Nweke

Global oil prices continued to surge on Thursday, climbing above $100 a barrel despite a coordinated effort by the International Energy Agency (IEA) and its member nations to release a record amount of oil from emergency reserves.

Brent crude rose nearly 9% during Asian trading, topping $100 a barrel even after all 32 IEA member countries agreed to release 400 million barrels of oil to ease supply pressures caused by the escalating conflict involving Iran. The move is intended to stabilize markets shaken by military tensions and threats to global energy shipments.

The reserve release is more than double the previous record set after Russia launched its invasion of Ukraine in 2022, which had similarly disrupted global energy markets.

However, markets remained volatile after warnings from Iran that prices could spike even higher. A spokesperson for the Islamic Revolutionary Guard Corps (IRGC) said oil could reach $200 per barrel as Iranian attacks on ships intensify in the strategically vital Strait of Hormuz.

The spokesperson warned that vessels linked to the United States, Israel, or their allies could be targeted, claiming efforts to artificially suppress oil prices would fail.

The Strait of Hormuz is one of the world’s most critical energy corridors, with roughly one-fifth of global oil shipments passing through the narrow waterway.

Global markets have been shaken since the United States and Israel launched airstrikes against Iran on February 28. Brent crude briefly surged close to $120 earlier this week before retreating slightly.

The price surge has already pushed fuel costs higher worldwide. In the United States, petrol prices climbed above $3.50 per gallon on Tuesday, according to the American Automobile Association.

Several Asian nations that rely heavily on Middle Eastern energy have been particularly affected. Long queues formed at petrol stations in the Philippines, Thailand and Vietnam as motorists rushed to fill their tanks.

Authorities in Thailand have urged government workers to work from home, while the Philippines introduced a four-day work week for public employees to help conserve fuel.