Oil prices surge past $112 as US taps emergency reserves amid escalating Iran conflict

Amid escalating conflict in Iran, the US Department of Energy announced a plan to loan an additional 10 million barrels of crude oil from its Strategic Petroleum Reserve, part of a historic 172 million-barrel drawdown coordinated with 32 countries releasing a total of 400 million barrels. This move aims to stabilize soaring oil prices, which have climbed past $112 per barrel, pushing US gas prices above $4 per gallon. Analysts warn that despite this unprecedented release, supply disruptions from the Strait of Hormuz closure could still cause significant shortages. The conflict's impact is expected to ripple through the economy, raising costs in various sectors including airfares, as noted by Federal Reserve Bank of New York President John Williams. President Trump's indication of prolonged military operations in Iran suggests continued pressure on oil markets ahead.