Oil prices surge toward $100 as IEA calls war in Iran 'the largest supply disruption' in history

Core Insights - The International Energy Agency (IEA) reported a significant supply disruption in the global oil market due to the ongoing war in Iran, with 7.5% of global oil supply affected [1] Oil Prices - Oil prices surged into the mid $90s per barrel following the IEA's announcement of a 400 million-barrel release from strategic reserves [1] - Brent crude futures increased over 6% to around $6.10, while West Texas Intermediate (WTI) crude rose nearly 10% to above $95.60 [2] Supply Disruption - The Strait of Hormuz, a critical passage for oil, has seen flow drop to nearly zero, with only a few Iranian-linked vessels operating [4] - Gulf states have cut production by 10 million barrels per day (bpd), and over 3 million bpd of refining capacity has been shut down due to the conflict [5] Iran's Stance - Iran's new supreme leader, Mojtaba Khamenei, stated that the Strait of Hormuz will remain closed and that attacks in the Gulf will continue [6] - The Revolutionary Guard Corps declared that no oil would be allowed to cross the Strait, predicting oil prices could reach $200 per barrel [7] Market Reactions - Goldman Sachs raised its price targets for Brent and WTI crude, estimating prices at $76 and $72 per barrel for a 30-day disruption, and $93 and $89 per barrel for a 60-day disruption [8]