Global oil prices climbed above $100 per barrel on Thursday, even as major economies agreed to release a record volume of crude oil from emergency reserves in an attempt to stabilise markets affected by the Iran conflict.
Brent crude rose by nearly 9 percent during Asian trading, surpassing the $100 mark despite the decision by all 32 members of the International Energy Agency (IEA) to release around 400 million barrels of oil to ease supply concerns.
The coordinated release represents the largest in the agency’s history and is more than twice the previous record set after the Russian invasion of Ukraine.
Market tensions remain high as Iran warned that oil prices could climb to $200 per barrel if attacks on vessels in the Strait of Hormuz intensify. A spokesperson for the Islamic Revolutionary Guard Corps (IRGC) stated that ships connected to the United States, Israel, or their allies could be targeted.
The Strait of Hormuz is one of the world’s most important energy transit routes, with roughly one fifth of global oil shipments passing through the narrow waterway.
Energy analysts say the release of strategic reserves may provide only short term relief. Martin Ma of the Singapore Institute of Technology described the move as historically significant but noted that it would serve mainly as a temporary buffer while geopolitical risks continue.
Oil markets have experienced sharp volatility since the United States and Israel launched airstrikes on Iran on February 28, with Brent crude briefly approaching $120 per barrel earlier in the week.
The surge in crude prices has already pushed fuel costs higher worldwide. In the United States, average petrol prices climbed above $3.50 per gallon earlier this week, according to the American Automobile Association.
Several Asian countries that rely heavily on Middle Eastern energy supplies have been particularly affected. Long queues have been reported at petrol stations in the Philippines, Thailand, and Vietnam as motorists rushed to fill their tanks.
Authorities in Thailand have encouraged many government workers to work from home to reduce fuel consumption and advised officials to avoid non-essential overseas travel. Meanwhile, the government of the Philippines has introduced a four-day work week for public sector employees as part of measures aimed at reducing energy use.