Oil prices climbed on Wednesday morning as the market continued to monitor developments in the US-Iran conflict. As of 4:35 AM Eastern Time, the global benchmark Brent crude futures rose 2.2% to $89.72 per barrel, while US crude increased 2.5% to $85.55 per barrel.

Despite reports of an unprecedented proposed release of emergency oil reserves by the International Energy Agency, oil prices advanced during early Wednesday trading. A Tuesday evening report indicated that the IEA had proposed the largest-ever release of strategic petroleum reserves, which would exceed the 182 million barrels released by member nations following Russia's full-scale invasion of Ukraine in 2022. A decision on the emergency oil reserve release is expected from member countries on Wednesday.

On Tuesday, G7 energy ministers convened in Paris to discuss the US-Iran conflict and its impact on global oil and gas markets. The conflict has already disrupted energy production in the Middle East and restricted transit through the critical shipping chokepoint, the Strait of Hormuz.

IEA Executive Director Fatih Birol stated in a Tuesday declaration that member countries currently hold over 1.2 billion barrels of public emergency oil reserves, with an additional 600 million barrels of industry stocks held under government obligations. Birol noted, "Recent oil market conditions have continued to deteriorate," pointing to blocked shipping lanes and significant reductions in oil production. He added, "This poses a growing and substantial risk to the market. We have discussed all feasible options, including deploying the IEA's emergency petroleum reserves."

On Tuesday, US Energy Secretary Chris Wright inaccurately claimed on a social media account that the US Navy had escorted a tanker through the Strait of Hormuz, causing a sharp decline in oil prices following the post. White House Press Secretary Caroline Levitt later clarified to reporters that the US Navy "is not currently escorting any tankers or vessels."

Overnight reports indicated that US forces had destroyed multiple Iranian vessels near the Strait of Hormuz, including 16 mine-laying boats.

Energy market analyst Sasha Foss commented on Wednesday, "We believe the critical factor remains the duration of the conflict. Releasing IEA reserves might only buy a few days of buffer; ultimately, everything depends on the reopening of the Strait of Hormuz." Foss added, "The conflict must conclude by this weekend, otherwise oil prices will surge back above $100 dollars."

Other market observers warned that a prolonged US-Iran conflict could push oil prices above the $100 threshold once more. "If the situation eases in the coming weeks, oil prices could retreat... but even then, prices are unlikely to return to the $60-$70 range seen earlier this year," said Paul Gooden, Head of Global Natural Resources at investment firm Ninety One, in a Tuesday report. He further stated, "If the shipping disruption lasts longer, the consequences will be more severe. Oil prices could surge further – potentially exceeding $120 or even higher – until elevated prices begin to suppress demand."