Oil prices back above $90 but WTI crude resumes rally
A family sits in front of a shipyard off the coastal city of Fujairah on the Strait of Hormuz in the northern Emirates on February 25, 2026.
Giuseppe Cacace | Afp | Getty Images
Oil prices rose early Wednesday despite a report from the International Energy Agency that a historic emergency reserve would be released.
As of 05:23 ET, global comparison Brent crude oil Futures rose 4.1% to $91.41 per barrel. US crude oil It traded at $87.28 per barrel, up 4.6%.
Crude oil prices
On Tuesday, G7 energy ministers met in Paris to discuss the US-Iran war and its impact on global oil and gas markets. The conflict has disrupted energy production in the Middle East and led to a blockade of the Strait of Hormuz, a critical shipping route.
On Wednesday morning, Reuters reported that the IEA would recommend the release of strategic oil stocks that would exceed 100 million barrels per day in the first month. In the statement sent BloombergG7 energy ministers said they support “the implementation of proactive measures to address the situation, including the use of strategic reserves.”
Came after The Wall Street Journal reported On Tuesday evening, the IEA had proposed the largest-ever release of oil from its strategic reserves, surpassing the 182 million barrels released by its member states following Russia’s full-scale invasion of Ukraine in 2022. Countries will decide on Wednesday whether to release emergency oil stocks.
The IEA did not immediately respond to CNBC’s request for comment.
IEA Executive Director Fatih Birol said on Tuesday that member countries currently have public emergency oil stocks of more than 1.2 billion barrels, while 600 million barrels of industrial stocks are also held under government obligation.
Birol said, “Conditions in the oil markets have deteriorated recently,” and pointed out that in addition to transit difficulties, there has been a serious contraction in oil production.
“This creates significant and growing risks to the market,” he added. “We discussed all available options, including the introduction of the IEA’s emergency oil stocks.”
Oil prices fell sharply on Tuesday after US Energy Secretary Chris Wright falsely stated on his social media account that the US Navy was escorting a tanker through the Strait of Hormuz.
White House Press Secretary Karoline Leavitt later told reporters that the U.S. Navy “is not escorting a tanker or ship at this time.”
During the night, American forces reportedly sank several Iranian ships, including 16 minelayers, near the Strait of Hormuz.
“We think the really critical factor is the duration of the war, so the IEA’s announcement of the stocks 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 “Europe Early” program on Wednesday. he said.
“This conflict must end by the end of the week. Otherwise, we will see oil prices rise above $100 again,” Foss said.
Other market watchers have warned that a protracted conflict between the United States and Iran could push oil above the $100 threshold.
“Oil prices may decline if tensions ease in the coming weeks… but even in that scenario, prices are unlikely to return to the $60-$70 range seen at the beginning of this year,” Paul Gooden, Ninety One’s global head of natural resources, said in a note on Tuesday.
“If the outage lasts longer, the consequences become more severe. Oil prices could rise further – potentially to above $120, or even higher – until higher prices begin to constrain demand.”
