Global Oil Prices Surge Over 8% as Middle East Tensions Spark Supply Concerns
Mumbai, March 12: Global crude oil prices surged sharply on Thursday as markets reacted to growing concerns over potential supply disruptions linked to the escalating tensions in the Middle East.Despite a major coordinated effort to boost supply through emergency reserves, oil markets continued to climb as traders assessed the risks to global energy flows.
Brent Nears $100, WTI Jumps Close to $95
Benchmark crude prices rose more than 8 per cent during the day.West Texas Intermediate (WTI) gained about 8.8 per cent to trade near $95 per barrel, while Brent crude climbed around 8.9 per cent to hover near $100 per barrel.
The sharp rise reflected strong fears in the market that crude supply could tighten if the conflict in the Middle East disrupts oil shipments.
IEA Announces Largest Emergency Oil Release
In response to rising concerns, the International Energy Agency (IEA) on Wednesday announced that its 32 member countries would release a combined 400 million barrels of crude oil from their strategic reserves.The move represents the largest coordinated release of emergency oil stocks since the agency was established following the 1973 Oil Crisis.
US Plans Additional Release from Strategic Petroleum Reserve
Separately, the United States Department of Energy said it would release 172 million barrels of crude oil from the country’s Strategic Petroleum Reserve.US Energy Secretary Chris Wright said the shipments could begin as early as next week and may take approximately 120 days to complete.
Supply Risks Persist Despite Emergency Measures
However, the coordinated supply efforts failed to calm markets. Traders remain concerned that the emergency releases may not be sufficient to fully offset potential disruptions in oil flows through the Strait of Hormuz, one of the most critical shipping routes for global crude.Any disruption in the strait could significantly affect global oil supplies, keeping markets on edge.
Rising Oil Prices Weigh on Global Markets
The surge in crude prices also impacted financial markets.Indian equity markets opened sharply lower as higher oil prices weighed on investor sentiment. At the same time, Asian shares declined after reports of additional vessel strikes in the Strait of Hormuz and Iraqi waters pushed oil prices higher.
The developments have raised concerns about inflation pressures and increasing borrowing costs across global markets.
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