Global crude oil markets rallied sharply on Thursday as traders reacted to intensifying supply concerns linked to geopolitical tensions in the Middle East.
Despite a major intervention by the International Energy Agency, oil benchmarks rose sharply during the session.
Investors remained cautious about potential disruptions to energy shipments moving through key maritime routes.
Benchmark prices advanced more than eight per cent during the day. West Texas Intermediate crude gained nearly 8.8 per cent and traded close to 95 dollars per barrel.
Meanwhile, Brent crude rose around 8.9 per cent and hovered near the 100-dollar mark.
Market participants believe escalating tensions could tighten global supply if shipping activity faces interruptions in the region.
In response to the volatile situation, the International Energy Agency announced that its 32 member states would collectively release about 400 million barrels of oil from strategic reserves.
The initiative represents the largest coordinated emergency stock drawdown since the organisation’s creation following the 1973 Oil Crisis.
Separately, the United States Department of Energy confirmed that it will release 172 million barrels from the country’s Strategic Petroleum Reserve.
US Energy Secretary Chris Wright stated that deliveries could commence next week and may continue for roughly 120 days.
Nevertheless, the oil market maintained its upward trajectory. Traders remain uneasy about potential disruptions along the Strait of Hormuz, a vital artery for global crude transport.
Rising energy prices also pressured financial markets. Indian equities opened lower, while Asian stocks slipped amid reports of vessel attacks near Hormuz and Iraqi waters, amplifying inflation concerns and raising global borrowing costs.
Also Read: Oil Prices Fall After Reports IEA May Release Emergency Crude Reserves
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