Global crude oil prices fell on Wednesday after reports suggested the International Energy Agency (IEA) may release emergency reserves to stabilise the market as tensions rise between the United States and Iran.
The price of Brent crude oil declined 0.99 per cent to $86.93 per barrel, while West Texas Intermediate (WTI) futures fell 0.75 per cent to $82.82.
Both benchmarks had already dropped more than 11 per cent overnight, marking their steepest single-day fall in four years.
Reports indicate that the proposed move could become the largest emergency oil release in the agency’s history.
Policymakers are considering the step to ease the sharp surge in oil prices caused by the ongoing conflict and supply disruptions.
If approved, the release could exceed the 182 million barrels deployed in 2022 after the Russian invasion of Ukraine.
Oil markets remain volatile due to disruptions in the Strait of Hormuz, a key route that carries nearly one-fifth of global oil shipments.
The closure stranded several tankers and forced some producers to cut output.
Since January, Brent prices had surged nearly 50 per cent before easing in recent trading sessions.
Earlier this week, prices briefly approached $120 per barrel before falling after comments from Donald Trump suggested that the conflict with Iran could end soon.
The war between the United States and Iran has now entered its second week. Trump also warned Tehran against placing naval mines in the Strait of Hormuz.
Meanwhile, rising fuel prices in the United States have prompted some lawmakers to propose temporarily suspending the federal gasoline tax to ease pressure on households.
Also Read: Oil Prices Surge Past $100 As Iran Conflict Disrupts Strait Of Hormuz
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