Oil Soars Past $100 a Barrel Again

Oil traders got a record-breaking promise of relief—but apparently fear it may not be enough. Crude prices spiked more than 8% on Thursday, pushing global benchmark Brent back to $100 a barrel, even after governments pledged the largest emergency oil release ever coordinated by the International Energy Agency, CNBC reports. The AP reports the spike, which it put at more than 9%, came just days after prices hit almost $120. Iran warned Thursday that the US should expect prices to hit $200 a barrel if the war continues, Al Jazeera reports.

The IEA's 32 member nations plan to tap 400 million barrels from strategic reserves, including 172 million from the US. But analysts say that's only enough to cover at most a quarter of the potential shortfall if the Strait of Hormuz—through which about 20% of global supply moves—remains disrupted by the war in the Middle East. Timing is another issue: the US says shipments could start next week and take about 120 days, and industry experts estimate it could be two to three months before the extra barrels meaningfully hit the market. The result, per Raymond James strategist Pavel Molchanov: prices still "in panic mode," with traders betting that both the conflict and elevated prices could stick around even after the warfare stops.