The ongoing conflict involving Iran, Israel, and the United States continued to drive oil prices sharply higher Thursday, with Brent crude climbing back toward $100 a barrel even as governments unleashed a record amount of emergency crude reserves. The price of international benchmark oil rose approximately 6% to around $98 following fresh attacks on energy targets across the Gulf region. Global markets struggled to absorb the latest wave of uncertainty.
Iran struck multiple targets including oil tankers, fuel storage facilities, and merchant ships, in what analysts described as a deliberate campaign to weaponize energy supply chains. The Strait of Hormuz has been closed to regular traffic since late February, threatening the flow of roughly one-fifth of the world’s seaborne oil and gas. Saudi Aramco issued a stark warning about potentially catastrophic market consequences if the blockade persists.
The IEA’s 32 member countries took the historic step of jointly releasing 400 million barrels from their emergency stockpiles. The United States committed 172 million barrels from its Strategic Petroleum Reserve, with the energy secretary stating deliveries would start the following week and span around four months. President Trump framed the release as a tool to lower prices while the military campaign against Iran continues.
Asian stock markets responded negatively to the escalating conflict, with Japan’s Nikkei 225 losing 1.6% and South Korea’s Kospi declining 1.2%. European natural gas prices extended their gains, rising 7.7% for the second straight session. Iran’s military spokesperson added to market nervousness by threatening that oil could reach $200 a barrel if regional instability continues.
Goldman Sachs lifted its Brent forecast for the fourth quarter of 2026 to $71 a barrel, up from $66. Market strategists at Deutsche Bank described the situation as a potential stagflationary shock in the making. The combination of rising energy costs, supply disruptions, and geopolitical uncertainty is creating conditions that economists have not seen since the oil crises of the 1970s.