Oil prices surged another five percent early Thursday as the conflict in Iran entered its second week with no signs of de-escalation. U.S. stock market futures retreated, with the S&P 500, Dow Jones Industrial Average, and Nasdaq all showing losses before the opening bell.
U.S. benchmark crude oil jumped to $91.77 a barrel, and international standard Brent crude climbed to $97.32, briefly exceeding $100. Iran's intensified attacks on commercial shipping and oil infrastructure are aimed at pressuring the U.S. and Israel, disrupting traffic through the Strait of Hormuz.
In response to market volatility, the International Energy Agency announced plans to release 400 million barrels of oil from emergency reserves, the largest volume in its history. The U.S. will also release 172 million barrels from its Strategic Petroleum Reserve.
Analysts warn that continued conflict and uncertainty could push oil prices as high as $140 per barrel, fueling concerns about global inflation. Markets worldwide have experienced sharp swings in response to the conflict and its impact on energy supplies.