Global crude oil prices were see-sawing on Monday morning. Brent crude on the Intercontinental Exchange was up 0.79%, trading at $103.95 per barrel, while the US benchmark WTI hovered just under $99, down 0.09% from previous close. This volatility may translate into more expensive fuel.
This development comes right after the International Energy Agency (IEA), 32-nation body that protects the interests of oil-consuming countries, announced it will release a massive 400 million barrels from its members' emergency stockpiles.
The US alone will contribute 172 million barrels from its Strategic Petroleum Reserve (SPR), the vast underground salt caverns in Texas and Louisiana that store crude for exactly such emergencies. This is the single largest coordinated oil release in the IEA's 50-year history, surpassing even the 2022 response to Russia's Ukraine invasion.
2 March 2026
Get the latest issue of Outlook Business
While supplies from European and American IEA members will begin flowing by end of March. Earlier reports citing officials said that this is a temporary fix and the real solution remains reopening the Strait of Hormuz.
It is to be noted that oil prices have seen a surge in recent times due to the conflict in West Asia. The Iran-Israel war has disrupted one of the most critical oil supply routes, the Strait of Hormuz. With this chokepoint effectively shut, oil tankers are sitting stranded, and prices have shot up sharply.
According to previous reports, American petrol prices to jump by nearly 22% in a single month as a result of the strait's shutdown.
US President Donald Trump has been urging other countries to join hands with America to reopen the strait. But so far, his calls have not received any enthusiastic response. Trump also warned in an interview with the Financial Times that NATO could face a very troubled future if his proposal continues to go unanswered.
On the ground, the situation is stark. According to a report by Al Jazeera, citing the UK's maritime monitoring agency, barely five ships a day have been passing through the Strait of Hormuz since the war began. In normal times, that number is 138 ships per day. That is a collapse of more than 96% in shipping traffic through one of the busiest sea lanes on the planet.
Meanwhile, some Indian vessels have been allowed to transit through the Strait of Hormuz. Iran, on Friday, allowed two Indian LPG carriers, Shivalik and Nanda Devi, to sail through the strait.
For India, the closure of the strait has caused major problems. India imports nearly 90% of the oil it consumes, making it extremely vulnerable to any spike in global crude prices. Even a one-dollar rise in the price of a barrel of oil, if sustained for a full year, would add roughly ₹16,000 crore to India's import bill.
The trouble doesn't stop at fuel pumps either. The disruption has now started hitting LPG supplies. Worried consumers have begun panic-buying cylinders, and the government has been forced to step in to ensure that household kitchens are prioritised over commercial and industrial users.
