Oil prices rise as Iran attacks ships; IEA proposes record reserve release

11th Mar 2026 07:32

(Sharecast News) - Oil prices edged higher on Wednesday on reports that three vessels had been hit by "projectiles" in the Strait of Hormuz amid reports that Iran was laying mines in the key waterway.

Crude prices had fallen overnight on a report that the International Energy Agency was proposing the largest release of oil reserves in its history to stop the cost of oil surging as a result of constrained supply from the region.

In a further development on Wednesday, the G7 group of nations said they supported, in principle, the implementation of proactive measures to address the situation, including the use of strategic reserves.

Brent futures were up 2.39% to $89.90 a barrel at 0800 GM. US West Texas Intermediate gained 2.59% to trade at $85.61 a barrel. Natural gas prices were also 3.88% higher at €49.21 per kilowatt hour.

The UK Maritime Trade Operations service reported vessels had been struck off Dubai, the UAE coast and north of Oman, where the crew had been evacuated.

US officials claimed military strikes had destroyed 16 mine-laying vessels in the strait, which accounts for 20% of global oil shipments and has been closed since the war started almost two weeks ago.

Meanwhile the Wall Street Journal, citing unnamed sources, said the IEA's plan to unlock reserves would exceed the 182 million barrels of oil that IEA member countries put onto the market in two releases in 2022 when Russia launched its full-scale invasion of Ukraine.

The proposal was reportedly circulated at an emergency meeting of energy officials from the IEA's 32 member countries on Tuesday, with a decision expected on Wednesday. It would be adopted if none objects, but even one country's protests could delay the plan, officials said.

Oil prices have surged since the US and Israel started their war on February 28, hitting $119.50 a barrel at the start of this week before plunging below $90 on the WSJ report. Economists fear a spike in inflation and falling share markets if the war continues.

IEA members hold 1.2 billion barrels in public stocks, plus another 600 million in mandatory commercial inventories, IEA executive director Fatih Birol said on Monday.

Reporting by Frank Prenesti for Sharecast.com