Crude oil prices surged past $100 per barrel early Thursday, March 12, 2026, as Brent crude climbed above the key threshold—reaching $100 at 7:00 a.m. local time in Greece—before retreating slightly to around $98. By 3:00 a.m. Greek time, Brent crude from the North Sea was up 7.2% at $98.60, while West Texas Intermediate (WTI), the U.S. benchmark, rose 6.5% to $92.96—and gains continued.
Strategic Reserves Release Fails to Calm Markets
A coordinated international release of strategic petroleum reserves—announced yesterday by the 32 member countries of the International Energy Agency (IEA)—did little to ease investor concerns. The initiative, described as the largest-ever drawdown of emergency oil stocks, aims to inject 400 million barrels into global markets to avert a supply crunch. The United States plans to begin releasing 172 million barrels starting next week, with the process expected to span approximately 120 days, according to U.S. Energy Secretary Chris Wright.
Japan announced it will start tapping its strategic reserves beginning Monday. Germany confirmed similar plans but did not specify a timeline.
Escalating Tensions in the Middle East
With the Middle East conflict now entering its 13th day, Iran has signaled readiness for a prolonged war of attrition. Heightened volatility stems from ongoing hostilities in the Strait of Hormuz—the critical maritime chokepoint through which more than 20% of globally traded seaborne oil and liquefied natural gas passes.
A recent attack on two tankers off Iraq’s coast killed at least one sailor, according to authorities in Baghdad. In response, Iraq suspended operations at its oil terminals after the vessels were struck in Iraqi waters—underscoring growing supply risks across the region.
Iran also told mediators that any ceasefire discussion hinges on U.S. guarantees that neither the United States nor Israel will launch future attacks against the country—a condition Washington is widely expected to reject.
Strait of Hormuz Effectively Closed
The Strait of Hormuz remains effectively closed, with numerous commercial vessels reportedly hit off Iran’s coastline. Tehran declared this week that it will not allow “a single liter of oil” to be exported from the region to the ‘hostile camp’ or its allies until further notice.
Markets React Across Asia
Equity markets reacted sharply: Tokyo’s Nikkei index widened losses to over 2%, while Seoul’s KOSPI fell nearly 1%.