OIL prices shot above $100 per barrel today, while global stock markets continued to slide, as fresh attacks on energy targets in the Gulf countered the impact of crude releases from major economies.
The International Energy Agency (IEA) warned that the ongoing conflict in the Middle East has caused “the largest supply disruption in the history of the global oil market,” a day after its member countries announced the unprecedented release of 400 million barrels from their strategic reserves.
Yet fears over constrained energy supplies persisted, with the Strait of Hormuz through which roughly a fifth of the world’s crude flows effectively blocked by Iranian retaliatory strikes against ships and regional neighbors.
Recent attacks claimed at least one life after two oil tankers were hit off Iraq, while another cargo vessel caught fire from shrapnel damage.
According to the IEA, global daily crude output has dropped by at least 8 million barrels, with an additional 2 million barrels of petroleum products affected, representing roughly 7.5 percent of total daily production.
Brent crude, the international benchmark, peaked at $101.59 per barrel today.
Prices briefly fell but climbed again after US President Donald Trump emphasized that preventing Iran from acquiring nuclear weapons was more critical to him than controlling oil costs.
Brent is now trading roughly 38 percent higher than before the conflict began 13 days ago, following airstrikes by the United States and Israel.
Trade Nation analyst David Morrison noted, “Energy markets have been rattled by Iranian attacks on shipping in the Persian Gulf, along with missile strikes across the region.
The US’s inability to secure the Strait of Hormuz underscores limits to its influence over global energy flows.”
The IEA said the release of strategic reserves equates to about 20 days’ worth of supplies that typically pass through the Strait of Hormuz.
Morrison added that the move failed to stabilize prices as intended.
The surge in oil costs is already affecting the aviation sector.
New Zealand’s national airline plans to cancel 1,100 flights over the next two months, while Cathay Pacific has imposed additional fuel surcharges, and Air France-KLM has raised ticket prices.
Kathleen Brooks, research director at trading group XTB, warned that prolonged high oil prices could trigger a long-lasting inflation shock worldwide.
Financial markets reacted sharply. Wall Street opened lower, with the Dow dropping over 1 percent, while most European and Asian equity markets finished the day in the red.
The US dollar strengthened, driven by safe-haven demand and concerns about inflation, according to Victoria Scholar, head of investment at Interactive Investor.
Key Market Figures (around 1330 GMT):
Brent North Sea Crude: +8.7% at $99.94 per barrel
West Texas Intermediate: +8.6% at $94.77 per barrel
Dow: -1.1% at 46,879.88
S&P 500: -0.8% at 6,720.28
Nasdaq Composite: -0.9% at 22,522.95
FTSE 100: -0.5% at 10,305.77
CAC 40: -0.5% at 7,998.74
DAX: -0.4% at 23,540.30
Nikkei 225: -1.0% at 54,452.96
Hang Seng Index: -0.7% at 25,716.76
Shanghai Composite: -0.1% at 4,129.10
Euro/Dollar: $1.1537
Pound/Dollar: $1.3381
Dollar/Yen: 158.98
