US EditionIEA announces record 400-million-barrel release of oil to address Iran war supply disruption
IEA's 32 members will release 400 million barrels from strategic reserves, the largest ever, aiming to ease supply shocks from Iran conflict and Strait of Hormuz disruption.
- The International Energy Agency reported the Middle East conflict has caused the largest supply disruption ever, with crude oil production down by at least 8.0 million bpd and 2.0 million bpd of petroleum products including condensates shut off.
- Feb. 28 attacks by American-Israeli forces triggered the conflict, and Iran tightened its chokehold on the Strait of Hormuz.
- IEA's 32 member countries agreed Wednesday to unlock 400 million barrels from strategic reserves in the largest coordinated emergency stock release, but the IEA warned it is a 'stop-gap measure'.
- Markets reacted with sharp moves as oil prices briefly topped $100 then fell to around $92, a 6% rise, while European stocks fell over half a percent and Japan's Nikkei and Hong Kong declined 1% and 0.7%.
- For forecasting purposes, the IEA assumed only minimal flows in March through the Strait of Hormuz, with tankers backlog taking days to weeks to clear and partial shortfalls offset by Bab-el-Mandeb Strait routes and a 2026 average supply rise 1.1 million bpd from Kazakhstan and Russia.
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According to the International Energy Agency IEA, the Iran War is an unprecedented disruption of oil supply. It is the largest of its kind in history, writes the IEA in its monthly oil market report.
The war in the Middle East, which paralyzes the Strait of Ormuz and with it the global circulation of hydrocarbons, is the "most significant disruption" of the oil supply in history, warned the International Energy Agency (IEA) on Thursday.
IEA releases record 400m barrels of oil to counter supply shock
The International Energy Agency agreed to release 400 million barrels of oil from emergency reserves after the Iran war halted shipping through the Strait of Hormuz and drove global crude prices above $100 a barrel. The decision marks the largest coordinated release of strategic oil stocks since the agency formed in 1974. The International Energy Agency approved the largest coordinated release of oil reserves in its history after the US–Israeli …
The war in the Middle East is causing the "largest disruption of supply in the history of the global oil market," forcing Gulf oil producers to cut production. (ANSA)
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