Oil prices climb despite large strategic reserve releases

Oil prices rose in Asian trading on Thursday despite major announcements of crude releases from strategic reserves aimed at lowering prices following the Iran war.

At around 0100 GMT, Brent crude increased by 7.2 percent to 98.60 dollars per barrel, while West Texas Intermediate rose 6.5 percent to 92.96 dollars per barrel.

In stock markets, Japan’s Nikkei index dropped slightly by just over one percent, while South Korea’s Kospi remained largely unchanged.

The United States Department of Energy said on Wednesday it would release 172 million barrels from the strategic petroleum reserve beginning next week. The agency said the process would take about 120 days to complete based on planned discharge rates.

Earlier, the International Energy Agency announced that its member countries had agreed to release a combined 400 million barrels of oil from their reserves, marking the largest coordinated release in its history.

Japan said it could start releasing oil from its reserves as early as Monday, while Germany also confirmed plans to do the same, although it did not specify a timeline.

The market reaction comes as tensions rise in the Middle East. Iran has responded to US and Israeli attacks that began on February 28 by targeting sites across the oil-rich Gulf region.

The conflict has effectively closed the Strait of Hormuz, a vital global shipping route through which nearly 20 percent of the world’s oil normally passes on its way to international markets.