Quick overview

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Crude oil prices surged again on Wednesday evening in international markets amid escalating geopolitical tensions in the Middle East and growing fears of disruptions to global supply.

The price of Brent Crude rose 6.75% to $99.28 per barrel, while West Texas Intermediate (WTI) climbed 7.6% to $93.88, bringing both benchmarks close to their highest levels of the past year.

The rally came despite an announcement from the United States that it will release 172 million barrels from its Strategic Petroleum Reserve in an effort to stabilize global oil supply.

The decision is part of a coordinated effort among members of the International Energy Agency, which agreed to release up to 400 million barrels collectively to offset potential supply disruptions, particularly following the effective closure of the Strait of Hormuz, one of the world’s most critical energy corridors.

U.S. Energy Secretary Chris Wright confirmed that President Donald Trump authorized the release beginning next week. According to Wright, the drawdown will occur gradually over roughly 120 days.

The announced volume represents a significant portion of the U.S. reserve, which currently holds about 415 million barrels.

Wright also said the plan includes replenishing roughly 200 million barrels next year to rebuild part of the released stockpile, stressing that the operation will not impose additional costs on taxpayers.

However, the announcement failed to calm energy markets, which continue to reflect investor concerns about the potential impact of the Middle East conflict on global crude supplies.

Iran warns oil could reach $200

Officials in Iran warned that oil prices cannot be contained through what they called “artificial measures,” following the record release of strategic reserves coordinated by the IEA.

The warning came from Ebrahim Zolfagari, spokesperson for the Khatam al-Anbia Central Headquarters, the body coordinating operations between Iran’s regular army and the Islamic Revolutionary Guard Corps.

Zolfagari said the price of crude could climb as high as $200 per barrel if security conditions in the region continue to deteriorate.

“With the expansion of the war, you can expect a $200 barrel of oil. Oil prices depend on regional security, and you are the source of that insecurity,” he said in a video distributed by the state news agency Tasnim News Agency, referring to the conflict with the United States and Israel.

He also warned that Iran will not allow “a single liter of oil” to pass through the Strait of Hormuz for the benefit of Washington, Tel Aviv, or their allies, underscoring the growing military tensions in the region.