Global Oil Prices Surge as Iran Tensions Escalate, IEA Announces Emergency Reserve Release
WASHINGTON (AP) — Global crude oil prices are climbing amid escalating tensions in the Middle East, prompting an unprecedented response from the International Energy Agency (IEA). On Wednesday, the IEA announced its 32 member nations, including the United States, will collectively release 400 million barrels of oil from their strategic reserves in an effort to stabilize markets.
The move comes as commercial shipping through the Strait of Hormuz, a critical waterway for global oil transit, has largely ground to a halt following the outbreak of conflict 12 days ago. Roughly one-fifth of the world’s oil passes through the strait, and its effective closure has ignited uncertainty in energy markets.
“This is the largest-ever release of emergency oil stocks in our agency’s history,” IEA chief Fatih Birol said, adding the distribution aims to “offset the supply lost.” IEA nations hold a combined 1.2 billion barrels of oil in public stocks, plus another 600 million in mandatory commercial inventories – roughly 124 days’ worth of lost supply from the Persian Gulf.
While the IEA didn’t provide a specific timeline for the release, Japan confirmed it will distribute 15 days’ worth of oil from private stockpiles and another 30 days from government reserves starting Monday. This is the IEA’s first coordinated release since 2022, when 182 million barrels were released following Russia’s invasion of Ukraine, and its sixth major action since the agency’s founding in 1974.
However, the threat to global energy markets remains significant. Iranian officials have warned the U.S. to brace for further disruptions, with Ebrahim Zolfaqari, a spokesperson for Tehran’s military command, stating, “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilized.”
Recent attacks on commercial vessels in and near the Strait of Hormuz have further fueled concerns. Projectiles struck two ships on Wednesday, and Tehran appeared to take responsibility for an assault on the Thai-flagged cargo ship Mayuree Naree. Global maritime trackers have confirmed at least 13 strikes on vessels in or around the strait since the conflict began.
U.S. Central Command warned Iranian civilians that U.S. forces cannot guarantee the safety of shipping ports in Hormuz, stating that civilian ports used for military operations lose protected status under international law. Iranian military spokesperson Abolfazl Shekarchi responded, threatening that Iranian ports would become legitimate targets if threatened.
Adding to the instability, two Iranian drones targeted Dubai International Airport on Wednesday, wounding four people. Fragments from an intercepted projectile also damaged Zayed International Airport in Abu Dhabi.
Chile Sworn In New Far-Right President
In separate news, José Antonio Kast was sworn in Wednesday as Chile’s new president, marking the country’s most significant rightward shift since its return to democracy in 1990. Kast, who secured a landslide victory in December against Communist Party candidate Jeannette Jara, campaigned on promises of stricter law enforcement, immigration controls, and traditional family values.
Kast has publicly expressed support for former Chilean dictator Augusto Pinochet. On his first day in office, he is expected to sign agreements with the United States to bolster collaboration on critical minerals and security issues. Chile is the world’s largest copper producer and holds roughly one-third of global lithium reserves, positioning it as a key player in the competition between the U.S. and China for influence in Latin America.
North Korea Conducts Missile Tests
Meanwhile, North Korea test-fired strategic cruise missiles from a Choe Hyon-class warship on Tuesday, the second such launch in a week. Leader Kim Jong Un, accompanied by his daughter, oversaw the launch and reiterated the need for a “powerful and reliable nuclear war deterrent.” The tests coincided with joint U.S.-South Korean military drills, which Pyongyang denounced as a “provocative and aggressive war rehearsal.”
