Oil Prices Top $100 Intraday...IEA's 400 Million Barrel Release Fails to Calm Market

Despite the news that the International Energy Agency (IEA) will release 400 million barrels from strategic reserves, international oil prices remain strong, with Brent crude exceeding $100 per barrel. This is attributed to the ongoing Middle East war, as Oman withdraws vessels from major ports and attacks continue across the Persian Gulf beyond the Strait of Hormuz, showing little sign of abating.

As of 3:00 p.m. KST on March 12, Brent crude was trading at $98.74 per barrel, up 7.35% from the previous session. West Texas Intermediate (WTI) crude also jumped 6.60% to $93.01 per barrel. Brent crude had briefly surpassed $100 per barrel before retreating slightly. On March 11 (local time), WTI closed at $87.25 and Brent at $91.98 on the New York Mercantile Exchange.

News that international oil prices have broken through the $100 mark is shaking other asset markets as well. The Korea Composite Stock Price Index (KOSPI), which opened higher, reversed into negative territory. In contrast, oil-related stocks are seeing gains amid the oil price rally. Refining shares such as S-Oil and SK Innovation are each up by approximately 1%.

The Nikkei 225 average in Japan is also extending its losses, while Taiwan's TAIEX index is down by more than 1%. Bitcoin has also dropped by nearly 1% over the past 24 hours and is trading around the $69,000 level.

Contrary to the IEA’s announcement, international oil prices are surging. The IEA stated, "The 32 member countries have agreed to supply 400 million barrels from their emergency reserves to the market to address turmoil in the oil markets caused by the Middle East war." The strategic reserves will be released to the market over appropriate periods depending on each member country's situation. Some countries plan to supplement this with additional emergency measures.

The fact that Iran’s attacks, which had previously been confined to the Strait of Hormuz, are now spreading across the entire Persian Gulf is fueling market anxiety.

According to Bloomberg, evacuation measures for ships have been implemented at Oman’s major oil export terminals. Citing sources, Bloomberg reported that, "As a precautionary measure, vessels were ordered to leave Oman’s Mina Al Fahal port." The evacuation order was issued after drone attacks occurred at other ports in Oman. Oman’s state-run Oman News Agency (ONA), quoting sources, reported that drones struck a fuel storage tank at Salalah port and that some drones were intercepted.

Oman is not alone. According to CNN, on the same day, two oil tankers—the Malta-flagged Zephyros and the Marshall Islands-flagged SafeSea Vishnu—were attacked by Iran while sailing in Iraqi waters. Explosions occurred on both ships, and so far, one fatality has been reported. In addition, Bahrain stated that Iran attacked a fuel storage tank at a facility in Muharraq Governorate.

Farhan Al-Fartousi, Director General of Iraq's Port Authority, said at a press conference, "There were explosions and fires on tankers at Basra port in the Persian Gulf, and 38 crew members have been rescued. All of them are foreign nationals," adding, "So far, we do not know the nature of the explosions on the two vessels." The specific extent of the damage has not yet been disclosed.

In a statement, the Iranian Armed Forces’ central command, Khatam al-Anbiya, warned, "You cannot lower oil and energy prices with artificial measures," and regarding oil prices, said, "Be prepared for $200 per barrel."

Neil Beveridge, Research Director at Sanford C. Bernstein & Co., said in an interview with Bloomberg TV, "The only real way to bring oil prices back down is to see the Strait of Hormuz reopen." He added that the release of strategic reserves is "nothing compared to the disruption of 20 million barrels per day caused by a blockade of the Strait of Hormuz."

This content was produced with the assistance of AI translation services.