The spike to ~$119 Brent reflects a classic geopolitical risk premium rather than a structural supply shift. When markets suddenly price a potential Hormuz disruption (≈20% of global oil flows), prices can overshoot quickly. Once political signalling suggests de-escalation, that premium collapses just as fast. The 16% swing you mentioned is typical of crisis unwinds.

Is $119 the 2026 top?

Unlikely to be a definitive ceiling yet. Three scenarios matter:

1. De-escalation scenario (most probable short term)

If shipping through Hormuz normalises and risk fades, Brent likely trades back to the $85–100 range. Much of the $119 move was insurance and panic hedging.

2. Persistent tension scenario

If sanctions tighten or Iranian exports stay constrained, oil could retest $110–120 later in 2026.

3. Full supply disruption scenario

If Hormuz actually closes, the ceiling disappears. Prices could spike $140+ temporarily, regardless of reserves.

Can G7 strategic reserves offset a 20% supply loss?

No. The maths is challenging.

Global demand: ~102 mb/d

Hormuz flow: ~20 mb/d

Combined OECD strategic reserves: roughly 1.5–1.6 billion barrels

Even a coordinated release of 5 mb/d only offsets about 25% of a Hormuz disruption, and only for several months. Strategic reserves smooth shocks. They cannot replace sustained lost supply.

Bottom line

$119 was likely a geopolitical spike rather than a fundamental top.

G7 reserves can buy time but not replace a 20% supply shock.

The real ceiling depends on whether shipping security in Hormuz stabilises.