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In a historic move, the International Energy Agency (IEA) has announced the release of 400 million barrels of oil from its reserves. This decision marks the largest release of its kind and aims to mitigate the economic repercussions of the ongoing conflict in the Middle East.

IEA Executive Director Fatih Birol highlighted the extraordinary nature of the current challenges facing global oil markets, stating, “The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA member countries have responded with an emergency collective action of unprecedented size.” His remarks underscore the critical need for a unified global response to significant market disruptions.

During an emergency meeting, representatives from 32 countries reached a unanimous decision to draw from their emergency reserves. This collective action is intended to stabilize oil markets affected by the conflict in the Middle East, ensuring that disruptions do not severely impact global supply.

Birol emphasized the importance of a global approach, noting that oil markets operate on a worldwide scale, and thus, the response to major disruptions must be equally comprehensive. This strategic release represents a concerted effort to maintain market stability and safeguard economic interests amid geopolitical tensions.

The 32 countries at an emergency meeting ‘unanimously agreed today to make 400 million barrels of oil from their emergency reserves available to the market to address disruptions in oil markets stemming from the war in the Middle East’, the statement said.

‘The emergency stocks will be made available to the market over a timeframe that is appropriate to the national circumstances of each Member country and will be supplemented by additional emergency measures by some countries.’

The US-Israeli war with Iran has effectively closed off the Strait of Hormuz, a crucial shipping route for oil and gas.

The waterway normally sees around 20% of all oil pass through every day, but with Iran all but cutting off access to the route, prices have shot through the roof and remain volatile.

Earlier today, Iran attacked three commercial vessels in the Strait of Hormuz, including a Thailand-flagged vessel called the Mayuree Naree.