Oil Prices Drop as IEA Considers Reserve Release Amid Iran Conflict
Brent crude fell five percent Wednesday after the International Energy Agency circulated a plan to release record reserves to counter soaring prices. The move followed US President Trump's claim that the Iran conflict would end soon and reports of G7 discussions on tapping strategic stockpiles. Prices had surged to near $120/barrel due to fears the conflict could choke off Gulf oil supplies through the Strait of Hormuz. Brent and West Texas Intermediate both dropped about five percent but pared losses as traders remain concerned about supply risks. Equity markets rose globally, with Tokyo and Seoul gaining significantly. The Strait of Hormuz remains critical, with nearly 20% of world oil transit at risk. US officials are considering military escorts for tankers. Iran vowed to block Gulf exports and asserted it would determine the war's end. National Australia Bank raised questions about Trump's timeline, noting Israeli PM Netanyahu's comments suggest no de-escalation. Brent North Sea Crude: Up 0.6% at $88.28/barrel West Texas Intermediate: Up 0.4% at $83.75/barrel