IEA plans to release 400 million barrels of oil to curb the impact of war in Iran

"This is a major action aiming to alleviate the immediate impacts of the disruption in markets. But, to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz."

"Iran has attacked commercial ships across the Persian Gulf in response to U.S. and Israeli strikes, escalating a campaign of squeezing the oil-rich region as global energy concerns mount and effectively stopping cargo traffic in the narrow Strait of Hormuz, through which about a fifth of all oil is shipped from the Persian Gulf toward the Indian Ocean."

"There are few options to replace the missing LNG cargoes from Qatar and the Emirates. Global energy supply has been reduced by around 20%."

The International Energy Agency announced the release of 400 million barrels from member countries' emergency reserves, more than double the 2022 Ukraine-related release. This action aims to counter market disruptions caused by Iran's attacks on commercial shipping and oil infrastructure in the Persian Gulf region. The Strait of Hormuz, through which approximately one-fifth of global oil transits, has experienced severely reduced cargo traffic. Export volumes of crude and refined products have dropped to less than 10% of prewar levels. Natural gas markets face additional challenges, with Asia most severely affected. The IEA emphasized that while the reserve release provides immediate relief, resuming transit through the Strait of Hormuz remains essential for stable energy flows.

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