A record-breaking release of strategic oil reserves by the International Energy Agency (IEA) has failed to cool the energy market. On the morning of March 12, Brent crude prices climbed to $101.59 per barrel, marking their highest levels since the summer of 2022. WTI, the US benchmark, showed a similar upward trajectory.
Prices remain at peak levels due to the looming risk of a blockade in the Strait of Hormuz. Iran has declared its readiness to completely halt oil shipments to the United States and its allies through the 55-kilometer-wide waterway. President Donald Trump has publicly dismissed Tehran's threats and reports of naval mining in the area, urging tanker operators to maintain their routes.
To stabilize the situation, 32 IEA member nations are set to inject 400 million barrels of oil into the market. The United States will provide the bulk of this volume, with Washington planning to release 172 million barrels over four months, starting next week.
While the 400 million barrels could theoretically compensate for a total blockade of the strait—which handles a traffic of 20 million barrels per day—for 20 days, a significant logistical hurdle remains. Experts warn that getting the crude to end consumers will take anywhere from several weeks to months.
The military confrontation involving the US and Israel against Iran has triggered a sharp spike in fuel costs globally. In Germany, the price of E10 gasoline has surpassed 2 euros per liter, prompting Berlin to consider limiting gas stations to a single price update per day. In the United States, fuel costs have reached their highest point since 2024. President Trump described the surge as an acceptable price for neutralizing Iran’s nuclear program, despite a Reuters poll showing that only 25% of Americans approve of strikes against Iran.
The impact is being felt most acutely in Asia, a region that imports 80% of the oil passing through the Strait of Hormuz. In Thailand, civil servants have been advised to conserve energy by avoiding elevators and business trips, while the Philippines has introduced a shortened work week to mitigate the crisis.