Morning Business Report: Global oil reserve release proposed as markets watch Iran conflict and rising fuel costs

The International Energy Agency is proposing the largest release of oil from strategic reserves in history as global markets react to major disruptions in the energy supply.

(LILAMAX)- According to reports, member countries are expected to decide whether to release emergency oil stockpiles in an effort to stabilize crude prices. The proposal comes as energy markets face pressure following the near-total closure of the Strait of Hormuz, a narrow waterway connecting the Persian Gulf to global shipping routes and one of the most critical oil transit chokepoints in the world.

The disruption has pushed oil prices higher and raised concerns about rising fuel costs worldwide.

So far, no U.S. airlines have announced fare increases linked to the spike in oil prices, but some international carriers are already adjusting ticket costs. Airlines including Air New Zealand and SAS have recently announced price increases tied to higher jet fuel costs. Travel experts say more airlines could follow if crude prices remain elevated.

Meanwhile, U.S. financial markets remained relatively stable as investors wait for more clarity on how long tensions with Iran could continue to affect global energy supplies.

New economic data also shows consumer spending in the United States surged in February, reaching its highest level in three years. According to the Bank of America Institute, debit and credit card spending rose 3.2 percent year-over-year, with growth across both retail and service industries. Analysts say larger tax refunds may have helped drive the increase in spending.

At the same time, a congressional study suggests some seniors may have paid more for health coverage last year due to alleged overpayments in Medicare Advantage plans.

Investigators say the average American senior’s Medicare premiums were about 10 percent higher in 2025, costing more than $200 annually in additional payments. The report claims some private insurers added diagnoses to patient records, triggering higher reimbursements from the Medicare program.

However, the health insurance industry disputes those findings. A spokesperson for AHIP, a major industry trade group, said the congressional report relied on “fundamentally flawed data, methodology and extrapolations” and should not be used to shape policy.

Economists say the combination of energy market instability, strong consumer spending, and healthcare costs will continue to influence the U.S. economy in the months ahead.