Members of the International Energy Agency (IEA) have agreed to release a record 400 million barrels of oil from strategic reserves in an urgent bid to calm volatile global markets. The unprecedented coordinated action comes as shipping turmoil in the Persian Gulf intensifies, with reports of more vessels being hit and crude prices trading near $100 a barrel.
Despite the IEA’s efforts, Brent crude oil surged 5% to $96 a barrel, reflecting growing fears over supply disruptions and the continued closure of the Strait of Hormuz. Iran has stated that any truce in the ongoing conflict will depend on international guarantees that the country will not face future attacks. In a diplomatic maneuver to secure vital shipping lanes, India is reportedly in talks with Iran to ensure safe passage for more than 20 tankers through the strait, joining Russia, China, and Pakistan in seeking alternative arrangements.
Adding to global trade tensions, the United States is initiating a Section 301 trade investigation against its major trading partners, including China, Mexico, and the European Union. The move signals a broader protectionist stance from Washington, potentially escalating economic friction with key allies and rivals alike.
In corporate news, BMW AG anticipates little room for improved profitability this year, expecting its automaking margin to remain between 4% and 6%. The German carmaker cited persistent challenges in the competitive global market.
Global equities reacted negatively to the confluence of geopolitical and trade uncertainties. European and Chinese stocks both declined around 0.5%, while Japan’s Nikkei 225 fell 1%. U.S. equity futures pointed to a lower open, ranging between 0.2% and 0.5% down. Gold traded flat at $5,185 an ounce, and the U.S. dollar showed little change against its major peers.