The International Energy Agency declared an energy security emergency Wednesday, triggering the largest release of emergency oil reserves in its history, as Iran’s military offensive against Gulf energy targets threatened to push oil prices permanently above $100 a barrel. All 32 IEA member nations unanimously agreed to collectively release 400 million barrels of crude. The action underscored the unprecedented nature of the supply disruption caused by the conflict.
Iran continued its strikes Thursday, hitting merchant ships near the Strait of Hormuz — including the Thai-registered Mayuree Naree, where three crew members were reported trapped — as well as oil tankers near Iraq’s ports, fuel tanks in Bahrain, and port facilities near Oman’s Mina Al Fahal terminal. Iraq suspended all crude exports. Oman cleared its main terminal of vessels as a protective measure.
Brent crude rose 9% to touch $100.29 a barrel before easing to around $98, still up about 6%. West Texas Intermediate climbed 8.6% to $94.75. Oil has climbed from $60 at the year’s start to a peak of $119, representing a historic price shock. Iran’s military warned that prices could rise to $200.
The United States announced a release of 172 million barrels from its Strategic Petroleum Reserve as part of the broader IEA response. Energy Secretary Chris Wright said deliveries would start within a week and take roughly four months. He accused Iran of deliberately threatening the energy security of America and allied nations.
Goldman Sachs raised its Q4 2026 Brent forecast to $71 per barrel. Deutsche Bank’s Jim Reid described the situation as carrying stagflation risk. Japan’s Nikkei dropped 1.6%, South Korea’s Kospi fell 1.2%, and European natural gas prices gained 7.7%.