International oil prices experienced a sharp decline on March 10. As of 15:45 Beijing time, WTI crude was trading at $86.68 per barrel, while ICE Brent crude stood at $90.78 per barrel, both retreating more than $30 from the previous day's peak.

According to reports, Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait have collectively reduced crude oil production by up to 6.7 million barrels per day. Saudi Arabia has cut output by 2 to 2.5 million barrels per day, while Iraq has reduced production by approximately 2.9 million barrels per day.

The extreme volatility in oil prices has significantly impacted global capital markets. On March 9, the Dow Jones Industrial Average reversed an intraday loss of over 1,000 points to close up 239 points, a gain of 0.5%. The S&P 500 also staged a strong rebound, finishing 0.8% higher. The Nasdaq Composite Index rose 1.4%.

However, the underlying conflict persists, and uncertainties remain for the market outlook. Jerry Chen, a senior analyst, noted that the longer the conflict continues, the worse the situation will become for oil prices and the global economy. Even if hostilities cease, restoring production capacity will take considerable time, meaning the shock to global inflation, economic activity, and supply chains could linger.

The timeline for a resolution remains unclear. On March 9, the U.S. President stated that American military actions would end "soon" but not within the week. He warned that any Iranian attempt to block oil shipments through the Strait of Hormuz would be met with a response "20 times" more severe than before. He also mentioned considering the removal of certain oil-related sanctions to stabilize prices, citing market turmoil caused by recent events.

Market analysts observe that the situation has already triggered higher oil prices, increased volatility, rising yields, and a potential worsening of risk aversion. A swift resolution is seen as more favorable for market stability than a prolonged conflict.

In response, a spokesperson for Iran's Islamic Revolutionary Guard Corps stated that the conclusion of hostilities would be determined by Iran, emphasizing the country's resolve to resist pressure.

Some investors worry that the current lull may be the calm before another storm. One portfolio manager with three decades of experience remarked that he had never witnessed such market conditions and found it difficult to predict when stability might return. Another oil market analyst cautioned that the extreme price swings suggest the current rally may not be over.

With no quick resolution to the Middle East conflict in sight, the release of strategic petroleum reserves is being considered as a contingency measure. The U.S. Energy Secretary confirmed that the government is discussing a coordinated release to address current energy market conditions.

Data from the International Energy Agency indicates that its member countries hold at least 1.2 billion barrels of oil in public emergency reserves. The United States maintains the largest strategic reserve, with storage capacity exceeding 700 million barrels located in underground facilities along the Gulf Coast.

The maximum daily drawdown rate from the U.S. Strategic Petroleum Reserve is 4.4 million barrels, and it takes approximately 13 days after a presidential decision for the oil to reach the open market. However, even at maximum release rates combined with contributions from other IEA members, the total supply would likely cover only a fraction of the estimated 18-million-barrel-per-day supply shortfall.