Brent crude, the global benchmark, climbed back above $100 (€87) per barrel today despite the release of strategic reserves aimed at preventing a global shortage.
At around 03:00 Lisbon time, Brent was up 9.3% at $100.50 per barrel, while WTI, the US benchmark, reached $94.92 (€82.30), a rise of 8.8%.
On Wednesday, the 32 member countries of the International Energy Agency (IEA) unanimously decided to release 400 million barrels of oil from emergency reserves to address market disruptions caused by the Middle East war and the closure of the Strait of Hormuz — the largest volume ever released.
The US and Israeli offensive against Iran has led to the suspension of maritime traffic through the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, due to Iranian threats against ships using the route, through which up to one fifth of the world’s oil passes.
US president Donald Trump announced on Wednesday that his administration will use the country’s strategic petroleum reserve to try to bring down petrol prices, which have risen due to the war with Iran. Asked about the reserve during an interview with Cincinnati broadcaster WKRC Local 12, Trump replied: “Well, we’re going to do it and then we’ll fill it back up.” “Now we’re going to lower it a little, and that will bring prices down,” he added, without specifying how many barrels would be released.
Trump had frequently criticised the Biden administration for using the reserve to try to lower petrol prices.
Also on Wednesday, Portuguese prime minister Luís Montenegro announced that Portugal will release “in principle” 10% of its strategic oil reserves to increase supply and help contain fuel prices.
Read more about this topic: Iran War: barrel of oil surpasses $90, highest since April 2024
Ongoing conflict and uncertainty have nonetheless fuelled speculation that prices could rise further. Asian markets retreated at the start of Thursday’s session, with Tokyo’s Nikkei 225 down 1.5% to 54,177.15, South Korea’s Kospi losing 1% to 5,552.01 and Hong Kong’s Hang Seng falling 1.2% to 25,577.71. The Shanghai Composite fell 0.5% to 4,110.20 and Australia’s S&P/ASX 200 dropped 1.6% to 8,601.70.
US futures fell more than 1%, with the dollar rising to 159 Japanese yen while the euro slipped to $1.1538. On Wednesday, US markets moved little, with the S&P 500 edging down 0.1% to 6,775.80 in a second consecutive session of modest moves following a period of volatility triggered by the Iran war. The Dow Jones Industrial Average fell 0.6% to 47,417.27 and the Nasdaq Composite rose 0.1% to 22,716.13.
