Global oil prices surged past $100 per barrel despite a massive emergency release of reserves, as markets remained worried about disruptions to energy supplies from the Middle East. Brent crude climbed above $100 during Asian trading on Thursday, even after members of the International Energy Agency (IEA) agreed to release 400 million barrels from strategic reserves. The move marks the largest coordinated drawdown since the agency was established after the 1973 Oil Crisis. However, the intervention failed to calm markets.

Analysts say the surge reflects growing fears that oil shipments from the Gulf region could face prolonged disruption. Tensions linked to the escalating conflict involving the United States, Israel and Iran have raised concerns that key maritime routes could be affected.

The focus of global energy markets has shifted to the Strait of Hormuz, a narrow but critical shipping lane between Iran and Oman. The corridor handles roughly one-fifth of the world’s oil supply, with tankers carrying crude from major producers including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar passing through the route to reach global markets.

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Although the reserve release is expected to add supply in the coming months, analysts believe it can only provide a temporary buffer. If tanker traffic through the Strait of Hormuz slows or stops, the potential supply gap could far exceed the additional oil released from reserves.

The situation also has significant implications for India, which imports about 90% of its crude oil needs, with nearly half sourced from the Middle East. A sustained rise in prices could increase the country’s import bill, widen the current account deficit and add to inflationary pressures.

Officials in India have said the government is closely monitoring developments and maintains sufficient reserves to handle short-term disruptions. At the same time, refiners are exploring alternative suppliers, including increased purchases from Russia, though replacing Middle Eastern shipments completely remains difficult in the near term.

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