Brent crude oil, the international standard, rose again to more than $100 a barrel even as Iranian attacks hit ships in the region’s waters early Thursday, Reuters reported. Associated Press reported.
This occurs a few days after the Crude oil prices skyrocketed. about 120 dollars a barrel. Oil prices soared more than 9 percent as supply concerns worsened with Iranian attacks on commercial shipping around the Strait of Hormuz.
Meanwhile, US benchmark crude oil jumped to around $95 a barrel
Iran had said Wednesday that the world should be prepared to receive oil at $200 a barrel as its forces continue to attack merchant ships in the strait. Reuters aforementioned.
The increase was observed hours after two foreign oil tankers were allegedly attacked in the Iraqi port of al-Faw this morning. The attack came hours after a Thai cargo ship was hit in the Strait of Hormuz and drones attacked fuel tanks in the port of Salalah in Oman, according to Al Jazeera.
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The projectiles also hit three vessels in Gulf waters, port, maritime security and risk companies said. Reuters aforementioned. Meanwhile, Kuwait, Qatar, the United Arab Emirates and Saudi Arabia continue to intercept more Iranian missiles and drones.
The latest attack on shipping in the Gulf region brings the total number of ships attacked to at least 16, and the ongoing US-Israel war with Iran shows signs of slowing.
IEA agrees to release a record 400 million barrels of oil
The International Energy Agency (IEA) Wednesday agreed to release a record 400 million barrels of oil from strategic reserves to combat rising global crude prices amid the Middle East war, AP reported.
All 32 countries have backed the measure, and the United States has taken a leading role by contributing 172 million barrels, said US Energy Secretary Chris Wright. “President Trump promised to protect America’s energy security by responsibly managing the Strategic Petroleum Reserve, and this action demonstrates his commitment to that promise,” he said in a news release.
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This is a larger reserve, compared to the 182.7 million barrels released in 2022 by the 32 IEA member countries in response to Russia’s large-scale invasion of Ukraine, the report notes.
However, the release of 400 million barrels would cover only about 20 days of supply lost due to disruptions along the Strait of Hormuz, and will take weeks or months to reach markets. Reuters indicated report.
IEA members maintain emergency reserves of more than 1.2 billion barrels, and another 600 million in industrial reserves are under government obligation, according to data cited by the news agency.
India’s reaction
India, a major importer of Middle Eastern oil, welcomed the IEA’s announcement on Wednesday.
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The country’s Ministry of Petroleum and Natural Gas stated: “India stands ready to take appropriate measures, as necessary, to support global market stability in line with the efforts of the International Energy Agency.”
“Japan will act first”
G7 member Japan, which relies heavily on Middle East oil, said it planned to release about 80 million barrels of its private and domestic oil reserves as a contribution. Reuters reported.
In a broadcast statement, Japan’s Prime Minister Sanae Takaichi said: “Rather than waiting for formal IEA approval of a coordinated release of international reserves, Japan will act first to ease supply and demand in the global energy market, releasing reserves as early as the 16th of this month.”
