Oil Prices Surge Despite Global Reserves Release

Crude oil benchmarks rise above $100 per barrel as geopolitical tensions continue to roil energy markets.

Published on Mar. 12, 2026

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Oil prices have continued to climb despite a coordinated release of strategic reserves by world governments, as the fallout from the U.S.-Israeli conflict with Iran disrupts global energy supply chains. Brent crude oil reached over $100 per barrel, while U.S. benchmark West Texas Intermediate rose to around $94 per barrel. Gasoline prices in the U.S. have also spiked 20% since the start of the conflict.

Why it matters

The surge in oil and gas prices is contributing to broader inflationary pressures worldwide, with the potential to slow economic growth if the situation persists. The disruption of oil shipments through the critical Strait of Hormuz is a major concern, as the waterway carries about one-fifth of the world's crude oil supply.

The details

Oil markets have been highly volatile since the U.S. and Israel launched attacks against Iran on February 28th. Prices initially spiked to nearly $120 per barrel for Brent crude as traders feared prolonged supply disruptions. While prices have pulled back somewhat, they remain sharply higher than before the conflict began. In response, world leaders agreed on Wednesday to release 400 million barrels of oil from their strategic reserves, including 172 million barrels from the U.S. However, this coordinated action has so far failed to stem the price increases.

  • On February 28th, the U.S. and Israel launched attacks against Iran.
  • On Monday, the price of Brent crude spiked to nearly $120 per barrel.
  • On Wednesday, world leaders agreed to release 400 million barrels of oil from strategic reserves.

The players

United States

A country that launched attacks against Iran alongside Israel, contributing to the current geopolitical tensions and disruption in global oil supply.

Israel

A country that launched attacks against Iran alongside the United States, contributing to the current geopolitical tensions and disruption in global oil supply.

Iran

A country that has been the target of attacks by the U.S. and Israel, leading to heightened geopolitical tensions and disruption in global oil supply.

International Energy Agency

The organization that coordinated the release of 400 million barrels of oil from strategic reserves in an effort to stabilize global energy markets.

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What’s next

Analysts will be closely monitoring the impact of the strategic reserves release and any further developments in the U.S.-Israeli conflict with Iran, which could continue to drive volatility in global oil markets.

The takeaway

The surge in oil prices triggered by the geopolitical tensions is contributing to broader inflationary pressures worldwide, underscoring the fragility of global energy supply chains and the need for long-term solutions to enhance energy security and sustainability.