Member countries of the International Energy Agency have unanimously agreed to release 400 million barrels of oil from emergency reserves to stabilise global markets disrupted by the war involving Iran.
The decision was announced after an extraordinary meeting of the agency’s 32 member governments, convened to assess supply disruptions caused by the conflict in the Middle East.
“The oil market challenges we are facing are unprecedented in scale,” said Fatih Birol. “I am very glad that IEA member countries have responded with an emergency collective action of unprecedented size.”
The coordinated release - the largest in the organisation’s history - will be implemented according to each country’s national circumstances. The IEA Secretariat is expected to provide further details on timing and logistics in the coming weeks.
The move comes as the conflict has sharply reduced oil shipments through the Strait of Hormuz, one of the world’s most critical energy corridors.
According to the IEA, export volumes of crude and refined products through the strait have fallen to less than 10% of pre-conflict levels since the war began on 28 February. Around 20 million barrels of oil per day - roughly a quarter of global seaborne oil trade - normally pass through the route.
With tanker traffic largely halted and shipping companies pulling back from the area due to security risks, oil and energy prices have surged. U.S. crude prices have risen more than 25% since the start of the conflict, while petrol prices in the U.S. have increased by more than 50 cents per gallon, reaching a national average of about $3.57 ($0.94 per litre).
Despite the planned release, analysts warn the measure may offer only limited relief if the Strait of Hormuz remains blocked.
According to analysts at JPMorgan Chase, emergency releases historically peak at about 1.4 million barrels per day - far below the estimated 16 million-barrel daily shortfall created by disrupted exports.
“Policy measures may have limited impact on oil prices unless safe passage through the Strait of Hormuz is assured,” the analysts said.
The agency said its member countries collectively hold more than 1.2 billion barrels of emergency oil stocks, with additional industry reserves held under government obligations.
The coordinated action marks the sixth emergency stock release in the IEA’s history. Previous releases were carried out during major supply disruptions, including the global response to the Russian invasion of Ukraine, when around 180 million barrels were released in 2022.
The IEA said it will continue to monitor global oil and gas markets and provide recommendations to member governments as needed while the conflict continues to affect energy supplies.
A shooting in Montreal, Canada has left three people dead, including a police officer, a civilian and the suspected attacker, police said. ...
The United States eased sanctions on Iran for 60 days as President Donald Trump warned he would do "what I have to do" if Tehran failed to honour the ...
A chaotic day of World Cup action saw Kylian Mbappé and Erling Haaland shine in high-scoring wins for France and Norway. Lionel Messi continued his ...
All 18 U.S.-resident passengers from the MV Hondius cruise ship linked to a hantavirus outbreak have returned to their home states after completing mo...
Six people were wounded in Russian air strikes across Ukraine overnight, local authorities said, as air raid alerts were issued in Kyiv in the early h...
A shooting in Montreal, Canada has left three people dead, including a police officer, a civilian and the suspected attacker, police said.
The United States eased sanctions on Iran for 60 days as President Donald Trump warned he would do "what I have to do" if Tehran failed to honour the deal.
A chaotic day of World Cup action saw Kylian Mbappé and Erling Haaland shine in high-scoring wins for France and Norway. Lionel Messi continued his record-breaking run as Argentina secured another commanding victory.
All 18 U.S.-resident passengers from the MV Hondius cruise ship linked to a hantavirus outbreak have returned to their home states after completing monitoring at the National Quarantine Unit, the University of Nebraska Medical Center said on Monday.
At least thirteen people have died and sixty-six have been injured following an explosion at Qatar's main liquefied natural gas (LNG) processing hub at Ras Laffan, authorities said on Sunday.
Cape Verde’s remarkable FIFA World Cup debut continued on Sunday (21 June) as the tournament newcomers held Uruguay to a 2-2 draw. Goalkeeper Vozinha was once again at the centre of the story, this time with his mother watching from the stands.
Tehran has agreed to let the International Atomic Energy Agency (IAEA) recommence inspections of its nuclear programme, U.S. Vice President JD Vance has said. The U.S. and Iran have settled on a 60-day roadmap aimed at reaching a final deal, according to mediators Qatar and Pakistan.
Armenia and Azerbaijan have agreed on a landmark internet deal that will allow traffic to pass through Azerbaijani networks.It's the latest deal to highlight the ongoing peace process between the two countries.
Three students have been killed and at least seven injured after two of their peers opened fire in a high school in the Philippines, police said. A spokesperson for the police said the two suspects, aged 14 and 15, had been arrested and a police pistol confiscated. Bullying is a possible motive.
A shooting in Montreal, Canada has left three people dead, including a police officer, a civilian and the suspected attacker, police said.
All 18 U.S.-resident passengers from the MV Hondius cruise ship linked to a hantavirus outbreak have returned to their home states after completing monitoring at the National Quarantine Unit, the University of Nebraska Medical Center said on Monday.
Six people were wounded in Russian air strikes across Ukraine overnight, local authorities said, as air raid alerts were issued in Kyiv in the early hours of Tuesday (23 June), urging residents to take shelter.
Romania’s prime minister-designate Adrian Vestea failed to secure parliament’s confidence late on Monday after the far-right opposition withheld support, prolonging a political crisis that could affect the country’s access to European Union funds and weigh on its credit standing.
The International Olympic Committee (IOC) and the China Institute of Sport Science (CISS) have launched a campaign to reach 100 million people in China by 2028, encouraging more active lifestyles and greater participation in physical activity through community programmes and digital tools.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment