Mass Oil Release Not Enough to Calm Market Fear

The International Energy Agency on Wednesday agreed to its largest-ever release of emergency oil reserves as governments seek to contain the price surge stemming from the US-Israel war with Iran. In the US, amid rising gas prices, the Trump administration scrambled to mollify an increasingly worried public with a new (albeit relatively small) push to increase offshore drilling.

Nevertheless, West Texas Intermediate futures gained 4.6% to settle above $87 a barrel by midafternoon, a full $20 more than before the war. Fresh attacks on ships in the Strait of Hormuz, chaotic messaging from the Pentagon and White House, threats from Donald Trump and no clear end to the war in sight had the upper hand with markets.