Middle East Crisis Oil Market

Japan: Has Started to Release Oil Reserves

Japan has begun to release its strategic oil reserves after the fighting in the Middle East. The country's government announced this on Monday, several media outlets report.

The measure means that the requirement for how large oil stocks the country's refineries must keep will be temporarily lowered between April 15 and 16.

It was clear last week that the IEA's member countries plan to release 400 million barrels of crude oil to try to dampen price increases on the oil market in the wake of the war in Iran.

Brent oil above $105 per barrel after the Kharg attack

Oil prices continue to climb on Monday morning, as the Iran war enters its third week.

At 08:30 Swedish time, Brent oil is up almost 2 percent and is trading above $105 per barrel. At the same time, WTI oil is up just over 1 percent for the day and is trading above $100.

Several media outlets are linking the gains to the weekend's American attack on Khargön, which is usually called the "crown jewel" of the Iranian oil market. No parts of the island's oil infrastructure are said to have been destroyed in the attacks, but according to Donald Trump, every military target on the island has been "completely destroyed."

At the same time, reports are coming in that the important oil port in Fujayra in the United Arab Emirates has once again been hit by missiles.

Bloomberg describes the port as the only route for the United Arab Emirates' oil exports, which does not go via the Strait of Hormuz. It is still unclear how much damage the port has sustained, sources told the news agency.

US Lets Iranian Oil Pass: “Okay for Now”

Iranian-flagged oil ships are allowed to pass through the infected Strait of Hormuz, so as not to disrupt the inflow to the global oil supply. This was stated by US Treasury Secretary Scott Bessent in an interview with CNBC.

Iranian oil ships with India as their destination have already been allowed to pass despite the presence of American military personnel in the strait, according to Bessent.

– For now, we are okay with it. We want the world to have a good supply, he says.

Oil prices, which climbed slightly earlier in the morning, have turned downwards during the afternoon. Brent oil is currently trading around $101 per barrel, down around 2.5 percent for the day. WTI oil is currently trading around $95 per barrel, down 5 percent.

The Battle for the Strait of Hormuz — It’s About the Matter

• After heightened tensions in February–March, several shipping companies, including Mærsk, Hapag-Lloyd and CMA CGM, halted all traffic through the Strait of Hormuz.
• Iran’s Revolutionary Guard declared the strait closed and threatened to attack ships, leading to a sharp rise in oil prices and a drop in tanker traffic of up to 90 percent.
• The US and several European countries have begun negotiations and planned military operations to reopen the strait and escort ships, while the US has introduced government insurance guarantees..
• Several merchant ships have been attacked in the strait in March, and the US reported sinking Iranian boats suspected of laying mines, while electronic warfare has made it difficult to track ships.
• Despite the blockade, some Iranian oil exports have continued, and both China and Europe have negotiated with Iran for safe passage.