Main developments
The International Energy Agency launched a record release of oil reserves, making 400mn barrels of crude available to the market. Oil settled 4.8 per cent higher at almost $92 a barrel. The US said later on Wednesday it would release 172mn barrels from its strategic reserve as part of the broader effort.
The EU is considering subsidising or cutting gas prices to “deliver relief now” following the sharp rise in European energy prices, said European Commission president Ursula von der Leyen.
Shell has declared force majeure on some liquefied natural gas deliveries to Asia, meaning the shipments would not be fulfilled.
Israel has continued to target Iran and Lebanon, including a strike on a building in central Beirut in the early hours.
The Pentagon said “multiple” Iranian vessels, including 16 minelayers, had been destroyed near the strait, as President Donald Trump warned Tehran against placing explosives in the waterway.
A government bond rout prompted by growing inflation fears deepened, pushing borrowing costs in Europe and the UK towards their highest levels of the year. Yields on 10-year US Treasuries also rose to a level not seen since the war began.
At least three vessels were struck in the Gulf, taking the total number of ships hit since the war began to at least 14.
US to draw down 172mn barrels of oil from SPR as part of global release
The US will release 172mn barrels of oil from its strategic petroleum reserve, as part of a push by members of the International Energy Agency to quell any further rises in oil prices.
US energy secretary Chris Wright said the release would take about 120 days to deliver based on planned discharge rates. It forms part of the IEAs 400mn-barrel release, which is the largest single drawdown of reserves in history.
“President Trump promised to protect America’s energy security by managing the Strategic Petroleum Reserve responsibly and this action demonstrates his commitment to that promise,” Wright said.
Trump campaigned on a platform of refilling the SPR — a vital tool to manage energy crises — but failed to do so. It currently contains just 415mn barrels, about 58 per cent of its capacity.
The president said during a trip to Ohio on Wednesday he would drawn down the SPR to lower petrol prices “and I’ll fill it up again”.
Merchant vessel targeted in Iraqi port
A merchant vessel is on fire off the coast of Iraq after being “reportedly targeted by a strike”, according to Ambrey, a maritime intelligence group.
Ambrey said video footage showed a “vessel engulfed in fire with a large plume of smoke rising from the area of impact”. “Fire was observed in the water” because of an apparent oil spill, it added.
Radio communications suggested the vessel was “conducting a ship-to-ship” transfer of cargo at the time of the strike in Iraq’s Al Basrah Anchorage, Ambrey said.