Trump Claims IEA Stockpile Release Pressures Prices, Oil Remains Rising
US President Donald Trump said the release of the largest emergency oil stockpile approved by the International Energy Agency (IEA) would ease energy price pressures as Washington seeks to “finish the job” in its military campaign against Iran. Speaking in Kentucky on Wednesday evening (March 11), Trump said the move would “substantially lower oil prices” as the US ends a threat he believes is endangering America and the world.
However, confirmation of the stockpile release did little to calm a market that remains volatile. Oil prices ended Wednesday’s session up more than 4% after swinging sharply again, while the US and Iran showed no signs of easing tensions. Brent traded near US$92 and US oil closed around US$87 per barrel, as war rhetoric and supply chain risks overshadowed the effect of the emergency stockpile policy.
The IEA approved the release of 400 million barrels from the emergency stockpile—more than double the 182 million barrels released after Russia’s invasion of Ukraine in 2022—with global oil consumption hovering just above 100 million barrels per day. French President Emmanuel Macron said the release would be organized in the coming days. Meanwhile, Gulf producers have already cut about 6% of global supply as the nearly impassable Strait of Hormuz is holding up exports and rapidly filling storage tanks.
Trump also said he would ease oil sanctions and assign the US Navy to escort tankers through Hormuz, while also expressing openness to talks with Iran. However, he did not elaborate on the mechanism or timetable, and stressed that the operation was not yet complete. When asked about mines in Hormuz, Trump said he was "not sure," despite Reuters reporting that Iran had placed about a dozen mines in the waterway.
The impact of the war is increasingly being felt on US logistics chains and domestic energy prices. The national average gasoline price rose to US$3.58 per gallon, the highest since May 2024, according to AAA. Meanwhile, the US International Development Finance Corp. announced that Chubb Ltd. is partnering on a US$20 billion reinsurance scheme to help revive shipping in Hormuz, while Trump is said to be considering using Cold War-era authority to reopen oil production off the coast of Southern California.
On the conflict front, attacks continued into the 12th day, with reports of ships being hit by projectiles in Hormuz and the Persian Gulf, and operational disruptions at Dubai International Airport following a drone strike. Iran, through regional intermediaries, stated that a ceasefire requires assurances from the US and Israel that it will not attack again in the future, while Israel stated that the campaign will continue until "victory" is achieved. With casualties continuing to mount and energy flows still unrecovered, the market will continue to monitor the implementation of the IEA stock release, the restoration of Hormuz traffic, and the extent to which Washington can reduce energy risk premiums without prolonging the conflict.
Source: Newsmaker.id
