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Oil Plunges Below $90 as IEA Mulls Historic Emergency Reserve Release

Crude oil prices have fallen sharply, with Brent dipping below $87 a barrel, following reports that the International Energy Agency is preparing for the largest release of emergency reserves in its history. The move aims to cool a price surge fueled by the US-Iran war, which led to the closure of the critical Strait of Hormuz and a near 50% price increase since January. US President Donald Trump has warned Iran against placing mines in the strategic waterway, as the conflict enters its second week with no resolution. In response to rising gasoline prices, US lawmakers have introduced legislation to temporarily suspend the federal gasoline tax.

Key Points: Oil Prices Crash Below $90 on IEA Reserve Release Plan

  • IEA proposes largest-ever emergency oil reserve release
  • Brent crude falls below $87 a barrel
  • Strait of Hormuz closure drove 50% price surge
  • US lawmakers propose gas tax suspension
  • Conflict enters second week with no resolution
2 min read

Crude oil prices dip below $90 mark after reports of IEA considering reserve release

Crude oil prices plummet as IEA proposes largest-ever emergency reserve release to counter war-driven price surge. Brent and WTI see steep declines.

"If Iran has put out any mines in the Hormuz Strait... we want them removed, immediately! - President Donald Trump"

New Delhi, March 11

Crude oil prices further declined on Wednesday after reports surfaced that the International Energy Agency proposed the largest release of emergency reserves in its history to cool the price surge fuelled by the US‑Iran war.

The proposed release would surpass the 182 million barrels deployed in two tranches in 2022 following Russia's invasion of Ukraine, according to multiple reports. The Group of Seven (G7) nations have asked the IEA to prepare scenarios for such a move, reports said.

Brent crude oil price fell 0.99 per cent to $86.93 a barrel, while US West Texas Intermediate (WTI) futures dropped 0.75 per cent to $82.82.

Overnight, both futures had settled down more than 11 per cent, marking the steepest single‑day decline in four years.

Brent prices had surged nearly 50 per cent since January after the closure of the Strait of Hormuz, a strategic passway that handled about one‑fifth of global oil flows. The disruption left tankers stranded, filled up storage capacity and forced producers to cut output, driving energy costs higher.

Oil prices had briefly approached $120 earlier in the week before retreating as traders reacted to comments from US President Donald Trump suggesting the conflict could end soon.

The US-Iran war entered its second week with no signs of resolution in sight. President Donald Trump warned Iran against placing mines in the Strait of Hormuz following reports of Iran having already done so or in preparations.

"If Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed, immediately!" President Trump posted Tuesday on social media, adding that removing the mines would be "a giant step in the right direction!"

The conflict's economic impact is already being felt in the United States, where gasoline prices have begun rising sharply.

Meanwhile, a group of US lawmakers has introduced legislation which would temporarily suspend the federal gasoline tax to ease pressure on households.

- IANS

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Reader Comments

P
Priyanka N
While the price dip is welcome, it feels like a temporary fix. The real issue is the instability in the Middle East. Our foreign policy needs to be strong to ensure our energy security isn't always at the mercy of such conflicts.
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Aman W
This is why we need to fast-track our renewable energy plans. Can't keep relying on imported oil where prices swing wildly because of wars far away. Solar and wind are the future for India's energy independence.
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Sarah B
Interesting to see the IEA step in. A coordinated global response is crucial. Hope this brings some stability. The 11% single-day drop is massive!
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Vikram M
The Strait of Hormuz situation is a nightmare for import-dependent nations like ours. Even with this release, prices are still much higher than in January. Government should use this breather to build up strategic reserves.
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Karthik V
With respect, I have to point out that while the price dip is reported, I haven't seen a corresponding drop at my local petrol pump in Bangalore yet. There's often a lag when prices go up, but not when they fall. Authorities should ensure transparency.

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