Global oil prices surged once again on Wednesday after three additional cargo vessels were reportedly struck in the Gulf, intensifying concerns over the security of shipping lanes and energy infrastructure and rattling markets worldwide. Brent crude jumped by more than 9% in Asian trading, briefly topping $100 per barrel before easing to around $97.50.
The spike comes amid growing fears that attacks on energy shipments could severely disrupt global supplies, exacerbating already heightened volatility in oil markets. Analysts noted that the recent incidents underline the fragility of critical maritime routes, particularly the Strait of Hormuz, which serves as a conduit for roughly a fifth of the world’s energy shipments.
In an effort to mitigate the economic fallout from the ongoing US-Israel conflict with Iran, the International Energy Agency (IEA) announced on Wednesday that it would release a record 400 million barrels of oil from strategic reserves, more than double the agency’s previous largest release following Russia’s invasion of Ukraine in 2022. Despite the unprecedented intervention, tensions in the region remain acute.
An Islamic Revolutionary Guard Corps (IRGC) spokesperson issued a stark warning to the global community, stating, “You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel,” and adding, “The price of oil depends on regional security, and you are the main source of insecurity in the region.” The statement reflects the continued volatility of the Strait of Hormuz, which remains effectively closed over fears of further attacks on commercial and energy vessels.
The rising oil prices have had immediate repercussions on global financial markets. In Japan, the Nikkei share index fell by 1%, while London’s FTSE 100 opened down 0.6%. The disruption in the narrow shipping route has heightened anxiety over the stability of energy supplies, given that a significant portion of the world’s oil flows through this critical corridor. Martin Ma, an energy analyst at the Singapore Institute of Technology, described the IEA’s oil release as “historically significant” but cautioned that it is only a “temporary buffer.” He stressed that “oil prices will stay high as long as there is a risk to supplies and latest jump suggests that traders are still expecting a ‘prolonged’ disruption,” emphasizing that market fears of extended instability are likely to sustain elevated crude prices.
This latest surge adds to a period of extreme volatility that began after the United States and Israel launched airstrikes against Iran on 28 February, when Brent crude briefly reached nearly $120 per barrel. The geopolitical tensions have triggered a sharp increase in fuel prices worldwide. In the United States, the average price of petrol surpassed $3.50 per gallon on Tuesday, according to the American Automobile Association.
Asian nations, heavily reliant on Middle Eastern energy imports, have also experienced acute disruptions. Long queues were reported at petrol stations in the Philippines, Thailand, and Vietnam, as residents rushed to secure fuel amid fears of shortages. Authorities in Thailand urged staff at most government agencies to work from home to conserve energy and discouraged non-essential overseas travel, while the Philippines introduced a four-day work week for government offices to reduce energy consumption.
The ongoing energy crisis underscores the interconnectedness of geopolitics and global economic stability. As the IEA moves to release record reserves, analysts warn that structural vulnerabilities in supply routes, particularly the Strait of Hormuz, coupled with persistent regional conflicts, are likely to sustain elevated oil prices for the foreseeable future. The combination of direct attacks on vessels, threats from the IRGC, and a geopolitical environment charged by the US-Israel-Iran confrontation demonstrates the precariousness of global energy markets and the wide-reaching impact on economies, transport systems, and consumer fuel costs across multiple continents.