The International Energy Agency (IEA) has authorized the historic release of 400 million barrels of oil to address the shortage caused by supply disruptions amid intensifying tensions in the Middle East.
The move comes after Iran announced the closure of the Strait of Hormuz, a critical passage through which much of the world’s oil supply passes, following joint US-Israeli military strikes against Iran.
The announcement, made on Wednesday, does not specify a timetable for the release of oil stocks. However, he added that the oil would be released in a timely manner depending on the circumstances of the 32 member states.
As a reminder, the IEA was established in 1974 to maintain global energy security in response to the Arab oil embargo of 1973. It mainly concerns advanced economies in Europe, North America and Northeast Asia.
Speaking at the organization’s headquarters in Paris, IEA Executive Director Fatih Birol said that given the significant impacts of the Middle East conflict on global oil and gas markets, energy security and the global oil economy, “I can now announce that IEA countries have unanimously decided to launch the largest emergency oil stock release ever in the history of our agency.” ยป
The agency holds more than 1.2 billion barrels of oil in public emergency reserves, as well as approximately 600 million barrels of industrial stocks held under government obligations.
Birol said the release would help alleviate the immediate effects of the closure of the Strait of Hormuz.
The normal flow of traffic from the strait is necessary to bring oil and gas flows back to the global market.
