Record emergency oil release fails to calm markets as crude nears $100
MARKET INSIDER – Asia-Pacific markets declined Thursday as investors struggled to digest renewed volatility in energy prices driven by the escalating Iran conflict, even after global governments announced the largest emergency oil release in history.
Regional equity markets broadly retreated. Australia’s S&P/ASX 200 fell about 1.6%, while Japan’s Nikkei 225 dropped 1.5% and the TOPIX declined a similar amount. South Korea’s Kospi slid roughly 1.3%.
In Greater China, Hong Kong’s Hang Seng Index lost more than 1%, while mainland China’s CSI 300 about 0.6% slipped as investors continued reassessing geopolitical risks and the inflationary impact of higher energy costs.
Oil prices remained the dominant driver of market sentiment. West Texas Intermediate crude jumped nearly 9% to around $95 per barrel, while Brent crude climbed close to $100 despite global attempts to stabilize supply.
In response to the shock, the International Energy Agency confirmed plans to release 400 million barrels of oil from strategic reserves, the largest coordinated intervention since the organization was founded in 1974. Meanwhile, the United States said it will release 172 million barrels from the Strategic Petroleum Reserve to help ease global supply pressure.
The moves come after Donald Trump signaled earlier that Washington would deploy strategic reserves to prevent energy prices from spiraling further.
Despite the coordinated response, markets remain skeptical that emergency stockpile releases alone can offset disruptions caused by the conflict near the Strait of Hormuz, the narrow maritime corridor through which roughly one-fifth of global oil and gas normally flows.
For investors, the situation presents a difficult balancing act. Strategic reserves can temporarily stabilize supply, but if tanker traffic remains constrained or military tensions escalate further, energy markets could remain volatile—keeping pressure on equities across Asia and beyond.
