London, March 11 (SANA) Global oil prices surged on Wednesday amid concerns about potential supply disruptions due to escalating war in the Middle East. While the possibility of the International Energy Agency (IEA) releasing strategic petroleum reserves offered some relief, prices still climbed more than 5% to nearly $90 a barrel.
“The situation will remain worrying as long as the Strait of Hormuz remains closed,” Tamas Varga, an analyst at PVM Energy, told AFP, adding, “Producers in the Gulf will voluntarily reduce their output to avoid filling storage facilities quickly.”
Meanwhile, at least three vessels, including a container ship and two cargo ships, were attacked on Wednesday near the Strait of Hormuz.
The UK Maritime Trade Operations (UKMTO) reported that these attacks are part of a series of incidents targeting ships since the conflict began on February 28, with 14 such incidents recorded so far.
On Wednesday, the G7 nations decided to release a portion of their strategic petroleum reserves in an effort to mitigate the economic fallout from the war and counter rising prices. Reports from Bloomberg and the Financial Times indicate that the expected release ranges between 300 and 400 million barrels, under the supervision of the International Energy Agency.
This possibility, coupled with statements from US President Donald Trump about seeking a swift end to the war, led to a price drop on Tuesday before prices rebounded on Wednesday.
According to the latest updates, the price of Brent crude for May delivery rose by 3.86% to $91.19 per barrel, while West Texas Intermediate crude for the same month reached $87.27, an increase of 4.58%.
The Strait of Hormuz is one of the world’s most vital waterways through which approximately 20% of the world’s oil and liquefied natural gas (LNG) production passes; this makes any threat to maritime security in the strait a significant factor influencing prices.
