The International Energy Agency has announced the release of 400 million barrels of oil from strategic reserves in response to rising global oil prices triggered by tensions involving Iran.
The decision was revealed during a virtual meeting of Group of Seven leaders chaired by France. According to the agency, the emergency oil reserves will be supplied to global markets over a suitable period depending on the national circumstances of each member country.
The move aims to stabilize crude oil markets and control rapidly increasing energy prices. The decision received unanimous support from all 32 member countries of the IEA.
This marks the sixth time since the agency’s establishment in the 1970s that such emergency reserves have been released. The last similar action occurred in 2022, following Russian invasion of Ukraine.
Global oil markets recently experienced a sharp shock after fears of the closure of the Strait of Hormuz and attacks on oil facilities caused prices to surge by 30 percent in a single day.
Currently West Texas Intermediate stands at $87.81 per barrel, while Brent Crude has reached $92.35 per barrel.
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