Oil Prices Surge 6% Despite IEA's Emergency Crude Release Amid Escalating US-Iran Tensions

Global Oil Market Volatility Continues Amid Middle East Conflict

Crude Oil Prices Rise 6% and 6.6% Respectively

In a volatile market, Brent crude futures jumped 6% to reach a high of $93 per barrel, while West Texas Intermediate futures showed a similar gain of 6.6% to hit $88.90 per barrel. The surge in prices comes as traders show little regard for the International Energy Agency's (IEA) decision to release the largest volume of emergency oil reserves in its history.

IEA's Emergency Oil Release

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The IEA, comprising 32 member countries, unanimously agreed to make 400 million barrels of oil from their emergency reserves available to the market to address disruptions in oil markets stemming from the war in the Middle East. This release is larger than the 182.7 million barrels released in 2022 in response to Russia's invasion of Ukraine. The IEA did not set out a timeline for when the stocks would hit the market, but stated that reserves would be made available over a timeframe.

Global Oil Reserves and Stockpiles

IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation. This coordinated stock release is the sixth in the history of the IEA, which was created in 1974.

Strait of Hormuz Disruption

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The conflict in the Middle East has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10% of pre-conflict levels, according to the IEA. An average of 20 million barrels per day of crude oil and oil products transited the Strait of Hormuz in 2025, or around 25% of the world's seaborne oil trade. Options for oil flows to bypass the Strait of Hormuz are limited.