A family sits with a shipyard in the background off the coast of Fujairah, a coastal city in the Strait of Hormuz in the northern emirate on February 25, 2026.
Giuseppe Cacasse | AFP | Getty Images
Oil prices rose early Wednesday morning despite reports that a historic release of emergency reserves would take place by the International Energy Agency.
Until 5:23 a.m. ET, Global Benchmarks brent crude oil Futures rose 4.1% to $91.41 per barrel. usa crude oil It rose 4.6% to trade at $87.28 per barrel.
crude oil price
On Tuesday, G7 energy ministers met in Paris to discuss the war between the US and Iran and its impact on global oil and gas markets. The conflict disrupted energy production in the Middle East and led to the closure of the Strait of Hormuz, a vital shipping route.
On Wednesday morning, Reuters reported that the IEA will recommend releasing more than 100 million barrels per day of strategic oil reserves in the first month. In a statement sent to Bloomberg, G7 energy ministers said they supported “the implementation of proactive measures to address the situation, including the use of strategic reserves.”
This comes after the Wall Street Journal reported Tuesday night that the IEA is proposing the largest-ever release of strategic oil reserves, exceeding the 182 million barrels that member countries put on the market in the wake of Russia’s full-scale invasion of Ukraine in 2022. Countries are expected to decide on Wednesday whether to release their emergency oil reserves.
The IEA did not immediately respond to a request for comment from CNBC.
IEA Director-General Fatih Birol said in a statement on Tuesday that member countries currently hold more than 1.2 billion barrels of public emergency oil stocks, with an additional 600 million barrels of industry stocks held under government obligations.
“The situation in the oil market has worsened in recent days,” Birol said, pointing to significant cuts in crude oil production as well as transportation challenges.
“This creates significant and growing risks for the market,” he added. “We discussed all available options, including making the IEA’s emergency oil reserves available to the market.”
Oil prices fell sharply on Tuesday after a post on U.S. Energy Secretary Chris Wright’s social media accounts incorrectly said the U.S. Navy was escorting a tanker through the Strait of Hormuz.
White House press secretary Caroline Levitt later told reporters that the U.S. Navy was “not escorting any tankers or ships at this time.”
Overnight, American forces reportedly sunk several Iranian vessels, including 16 minelayers, near the Strait of Hormuz.
“We really think the key factor is the duration of the war, so this release of IEA stock really buys us a few days, but really, it all depends on the opening of the Strait of Hormuz,” Marex energy market analyst Sasha Foss told CNBC’s “Early Europe” on Wednesday.
“This dispute needs to end by the end of this week, otherwise oil prices will rise again above $100,” Foss said.
Other market participants have warned that if the conflict between the US and Iran drags on, oil prices could rise above the $100 mark.
“Oil prices could fall if tensions ease in the coming weeks. … But even in that scenario, prices are unlikely to return to the $60-$70 range seen earlier this year,” Paul Gooden, head of global natural resources at Ninety-One, said in a note Tuesday.
“The longer the disruption lasts, the more significant the impact will be. Oil prices could rise even higher, potentially above $120, until higher oil prices begin to suppress demand.”
