Oil prices rose on Wednesday as renewed attacks on vessels in the Strait of Hormuz heightened concerns over supply disruptions, while analysts said a proposed release of strategic reserves would likely be insufficient to offset the losses. Brent crude futures settled at $91.98 per barrel, up $4.18, or 4.8%, while U.S. West Texas Intermediate (WTI) crude settled at $87.25, up $3.80, or 4.6%.
The rally followed reports that three additional ships were struck by projectiles in the Strait of Hormuz, bringing the total number of vessels hit in the region to at least 14 since the conflict with Iran began. Shipping through the critical waterway, which normally carries roughly 20% of global oil supply, has slowed sharply as security risks escalate.
The International Energy Agency (IEA) proposed releasing 400 million barrels of oil from strategic reserves, the largest coordinated release in its history, in an effort to stabilize energy markets. However, analysts noted that the proposed volume represents only about four days of global production, suggesting it would have limited impact if supply disruptions persist.
Supply risks were also reinforced by additional infrastructure disruptions in the region, including the shutdown of Abu Dhabi’s Ruwais refinery following a drone strike. Energy consultancy estimates suggest the conflict is currently removing roughly 15 million barrels per day of oil and refined products from global markets, keeping upward pressure on crude prices.
Analysts warn that even if the conflict ends quickly, supply disruptions could last for weeks as production and shipping systems gradually return to normal.