International Energy Agency proposes the largest-ever emergency oil reserve release to address Iran unrest — The Wall Street Journal

Investing.com - According to The Wall Street Journal on Tuesday, the International Energy Agency has proposed releasing the largest emergency oil reserves in history to ease the surge in oil prices caused by the US-Israel and Iran conflict.

The Wall Street Journal quoted informed officials as saying that the release is expected to exceed the 182 million barrels of oil released in two phases during the 2022 Russia-Ukraine war.

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The proposal was reviewed at an emergency meeting of the International Energy Agency on Tuesday, and countries will decide on the proposal on Wednesday.

The reserve release aims to address the large-scale supply disruption caused by the near-total closure of the Strait of Hormuz — a critical Middle Eastern waterway that accounts for about 20% of global oil consumption.

Iran has begun attacking tankers passing through the strait, and this week was also found laying mines in the waterway. The conflict with the US and Israel has now entered its 11th day.

As the market factors in the severe global supply disruption caused by the conflict, oil prices surged to nearly $120 per barrel but later retraced most of the gains, currently trading below $100.

Expectations of an emergency reserve release helped cool the rally in oil prices, and US officials also said that the war is nearing its end.

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