What caused WTI to spike near $120 and then reverse?

A rush to price in supply risk through the Strait of Hormuz and thin liquidity drove an outsized intraday surge. Sentiment flipped when signals pointed to easing hostilities and talk of coordinated G7 and IEA reserve releases. That erased much of the risk premium and triggered momentum selling back down.

How would a G7 oil reserves release affect prices?

A coordinated release adds prompt barrels, improves confidence in short term supply, and can compress the front month premium. It also deters speculative squeezes. The effect depends on the announced size, timing, and duration. Clear communication can calm volatility, while small or vague actions may have only a brief impact.

What does the move mean for Japan’s fuel and power bills?

If lower futures persist, gasoline, kerosene, and thermal power inputs could ease with a lag, depending on contracts and subsidies. Households and SMEs might see gradual relief on energy outlays. However, a weaker yen or renewed supply headlines could offset part of the benefit before bills reset.

How should retail investors in Japan respond today?

Keep risk small and use staggered entries. Focus on catalysts like reserve headlines, US inventory data, and Middle East shipping updates. Watch USDJPY and sector breadth. Consider trimming into strength and buying quality on dips. Avoid heavy leverage until volatility cools and key levels are confirmed on closing prices.

Global Market Insights

WTI Today, March 11: Historic Spike Reverses on G7 Reserve Plan

ByDanny Kontos March 11, 2026March 11, 2026

The WTI crude oil price swung almost 27% intraday toward $120 before a sharp pullback. Markets flipped after signals that Iran hostilities may cool and the G7 and IEA discussed coordinated strategic reserve releases. For Japan, this oil price reversal eases near term stress on inflation and equities, yet risk premiums tied to the Strait of Hormuz still matter. We outline what drove the move, how it affects Japan’s costs, and where opportunities and risks sit for today’s session.