International Energy Agency Announces Historic Oil Reserve Release Amid Iran War The International Energy Agency (IEA) announced Wednesday that its member governments will collectively release up to 400 million barrels of oil from strategic reserves in response to the ongoing conflict involving Iran, which has triggered a sharp rise in crude oil prices. This move marks the largest coordinated oil release in the IEA’s history, surpassing previous emergency actions and becoming one of the most significant global financial interventions since the 2008 financial crisis. The decision aims to mitigate the immediate economic and energy security impacts of the crisis, which has disrupted oil supplies through the Strait of Hormuz. The IEA’s executive director, Fatih Birol, emphasized that the conflict in the Middle East is severely affecting global oil and gas markets, with far-reaching consequences for energy affordability and the broader economy. He noted that the 32 member countries of the IEA unanimously approved the release, framing it as a critical step to stabilize markets amid the disruption. The Strait of Hormuz, a vital maritime route for approximately 25% of the world’s seaborne oil trade, has become a bottleneck due to heightened risks, with nearly all shipping through the waterway halted. The IEA highlighted that its member nations hold over 1.2 billion barrels in emergency stockpiles, with an additional 600 million barrels managed under government obligation. On average, 20 million barrels per day of crude oil and refined products pass through the strait, but the closure has forced some Gulf countries to reduce production as storage capacity nears its limit. The agency also warned that alternatives to the strait are limited, exacerbating the crisis.#strait_of_hormuz #international_energy_agency #fatih_birol #sanae_takaichi #macquarie
