Global oil prices are surging toward five-month highs amid intensifying military attacks on tankers in the Strait of Hormuz and diplomatic deadlock in the war involving the United States, Israel, and Iran. International benchmark Brent crude gained more than $2 on Wednesday to reach $110.85 per barrel.
The price rally follows reports of escalating maritime strikes. On Tuesday, Iran’s Islamic Revolutionary Guard Corps (IRGC) stated that two tankers caught fire after striking mines at what it characterized as an illegal crossing point in the strait. On Thursday, the IRGC claimed to have struck seven additional tankers, noting that four caught fire overnight during ship-to-ship oil transfers. Although Washington dismissed the Thursday claims, maritime risks remain elevated across key regional transit routes. In September, the Houthis, an armed group also known as Ansar Allah (Arabic for Supporters of God), took control of territory in Yemen near the Bab al-Mandeb strait, a crucial maritime chokepoint providing access to the Red Sea and Egypt’s Suez Canal.
The escalation occurs as emergency oil stockpiles worldwide sit at their lowest levels in decades, having been heavily drawn down since the war began on February 28.
Strategic oil stockpiles consist of crude oil and fuel reserves held directly by governments or private energy firms to cushion against supply emergencies. Most coordinated releases are managed by the International Energy Agency (IEA), which was formed in 1974 in response to the Arab oil embargo. IEA importing member nations are required to maintain reserves equivalent to at least 90 days of net imports. Neither China nor India are IEA members.
Emergency reserves have already been tapped at record levels this year. On March 11, shortly after the conflict began, the 32 member nations of the IEA agreed to release 400 million barrels of emergency oil—more than twice
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