ISLAMABAD (HRNW): Global crude oil prices surged by a record 10% in a single day, with Brent crude reaching $101.30 per barrel and U.S. West Texas Intermediate (WTI) climbing to $96.27 per barrel. This sharp increase is driven by the escalating conflict between the U.S., Israel, and Iran, which has effectively halted traffic through the Strait of Hormuz, a chokepoint responsible for 20% of the world’s oil supply.
In a historic move to stabilize the market, the International Energy Agency (IEA) and its 32 member countries have unanimously agreed to release 400 million barrels from their strategic emergency reserves. This is the largest coordinated stock draw in the agency’s history, significantly exceeding the 182 million barrels released during the 2022 Russia-Ukraine crisis. The United States alone has committed to contributing 172 million barrels to this global effort.
Despite this massive injection of supply, market prices remain elevated as investors fear a prolonged blockade and ongoing strikes on regional energy infrastructure. The IEA has officially warned that the world is now facing the “largest supply disruption in history,” surpassing the shocks of the 1973 oil crisis. Analysts suggest that if the transit routes are not secured soon, prices could continue to rise, impacting global inflation and domestic fuel costs worldwide.
Support Independent Journalism: At HRNW, we are committed to bringing you the facts and holding the powerful accountable. Your contribution helps us continue our mission of providing transparent and fearless reporting. Support our work today at hrnw.com/support-us.
