WASHINGTON, D.C. – Oil prices jumped even after the US and an international organization announced emergency reserves would be released. The price of oil and gas has been volatile since the US and Israel launched their war on Iran.
On Wednesday, Energy Secretary Chris Wright announced they would tap into the strategic petroleum reserves and release about 172-million barrels beginning next week.
The International Energy Agency, an organization that works with countries to respond to energy supply disruptions and other energy issues, said “the war in the Middle East is creating the largest supply disruption in the history of the global oil market.” They also add crude and oil products flow through the Strait of Hormuz has essentially gone from transporting 20-million barrels per day before the war “to a trickle”.
On Wednesday, the IEA announced they will release 400-million barrels of oil to address disruptions stemming from the war in the Middle East.
Despite these maneuvers, the price of Brent crude, the global benchmark, jumped above 100-dollars a barrel on Thursday, which is about 30-dollars higher than it was at the end of February.
There’s also reports of some tankers in the Persian Gulf that have been damaged. Iran’s new Supreme Leader reportedly announced that the Strait of Hormuz must stay closed to be “used as a tool to pressure the enemy”, according to Iranian state media.
