Brent Crude Oil Briefly Tops $100 as Iran War Threatens Global Supply
Brent crude oil prices surged toward the $100 mark on Thursday, more than 8%, extending gains for a second straight session as escalating tensions in the Iran conflict rattled global energy markets. The international oil benchmark briefly crossed the $100 level before trimming some gains, though prices remained sharply higher during the session. Meanwhile, U.S. crude futures climbed to around $91.77 per barrel after rising more than $4. Oil markets reacted quickly as supply risks intensified across the Middle East. Investors watched the situation closely. Could disruptions around the Persian Gulf trigger a prolonged spike in energy prices? The conflict has now entered its 13th day, and markets continue to absorb a steady stream of developments that affect oil transport routes and production facilities. Shipping Attacks And Terminal Shutdowns Raise Supply Fears Concerns about global supply intensified after Iraq halted operations at several oil terminals following attacks on two tankers in Iraqi waters. The incidents underscored growing risks for oil infrastructure in the region. At the same time, Iran increased pressure on global markets through attacks targeting commercial shipping near the Strait of Hormuz. The narrow waterway carries roughly one-fifth of the world’s traded oil, making it one of the most critical energy routes on the planet. Reports now indicate that cargo traffic through the strait has effectively stopped after multiple vessels came under attack near Iran’s coast. The disruption quickly tightened global supply expectations. Producers across the Middle East have already begun scaling back output in response to the growing instability. That shift raises a key question for markets. If the shipping route remains closed, how long can global supply chains absorb the shock? Energy traders know the answer may determine the next move in oil prices. Emergency Oil Release Attempts To Calm Markets In response to the mounting crisis, the International Energy Agency approved the largest emergency oil release in its history. Member countries plan to release a combined 400 million barrels from strategic reserves to stabilize markets. The United States also announced plans to release 172 million barrels from its Strategic Petroleum Reserve starting next week. Officials hope the move will help ease price pressures and maintain supply for global consumers. The decision followed a meeting of Group of Seven energy ministers in Paris, where officials discussed coordinated steps to address rising oil prices. However, the market reaction suggests traders remain cautious. Emergency stockpiles can help in the short term, yet they cannot fully offset prolonged disruptions in the Middle East. That uncertainty continues to drive large price swings across the energy market. Global Markets React As Oil Volatility Climbs Oil’s sudden surge has already spilled into broader financial markets. U.S. stocks moved lower early Thursday as investors reacted to rising geopolitical risks and the potential impact of higher energy prices. The S&P 500 dropped about 0.9% in early trading, while the Dow Jones Industrial Average lost more than 500 points. The Nasdaq Composite also declined as traders reassessed inflation risks tied to rising oil costs. Why does oil carry such influence over global markets? Higher energy prices often ripple through transportation, manufacturing, and consumer goods, pushing inflation higher across the economy. Analysts at Oxford Economics noted that the recent swings in Brent crude have drawn attention across the financial world. The firm warned that volatility will likely persist because no clear timeline exists for de-escalation of the conflict. The closure of the Strait of Hormuz remains the biggest concern. Until shipping traffic resumes, uncertainty will continue to dominate the oil market. Oxford analysts even suggested that Brent prices could spike as high as $140 per barrel, depending on how the conflict evolves.