Brent Crude closed Friday at $103.14 — up 2.67% on the day and the second consecutive close above the $100 threshold first breached on Thursday. Since the war began on 28 February: Brent has risen 41.5%, WTI 47%. US petrol reached $3.63 per gallon nationally.
On Wednesday, the IEA released 400 million barrels from strategic reserves — the largest coordinated action in the agency's 50-year history. The market absorbed it in two trading sessions. The mechanism of failure is structural: strategic petroleum reserves are designed for temporary disruptions — a hurricane shutting Gulf of Mexico platforms, a pipeline rupture. They deliver oil over months at fixed discharge rates. The US contribution of 172 million barrels will take 120 days to reach market at planned discharge rates. The Hormuz supply gap is immediate — 8 million barrels per day removed from global supply, according to the IEA's own March report — and, based on the Navy's assessment that escorts cannot begin until Iranian fire is "substantially reduced," could persist for the duration of the war. The reserves are addressing an open-ended problem with a finite tool.
Friday's price also absorbed a false report that an Indian-flagged tanker had transited Hormuz, which briefly pulled Brent below $100. The correction — the tanker was east of Hormuz, carrying gasoline bound for Africa — demonstrated how sensitive the market is to any signal of resumed transit. A misidentified cargo ship moved prices $3–4 in minutes; the structural reality reasserted itself within hours. The market has priced in a minimum two-week closure and is beginning to price in months.
The 1973 Arab Oil Embargo removed approximately 5 million barrels per day from global supply and doubled prices over two months. This war has removed 60% more supply and achieved a comparable price increase in under three weeks. The comparison understates the current problem: in 1973, alternative supply routes existed and The Persian Gulf itself remained open. With Hormuz at single-digit daily transits, approximately 20% of the world's traded oil has no route to market. The IEA's reserves bought time. They did not buy a solution.
