IEA approves biggest-ever oil reserve release amid Iran war supply crisis

(Sharecast News) - The International Energy Agency on Wednesday ordered the release of 400 million barrels of oil reserves - the largest in its history - to help ease the supply and price spike crisis caused by the US-Israeli attacks on Iran. Oil prices had fallen overnight as reports emerged the energy watchdog's 32 members were set to approve the release of a third of the group's total government stockpiles.

The emergency intervention far outstrips the 2022 release of 182m barrels of oil by IEA countries after Russia's full-scale invasion of Ukraine

"Oil markets are global so the response to major disruptions needs to be global too. Energy security is the founding mandate of the IEA, and I am pleased that IEA members are showing strong solidarity in taking decisive action together," said IEA executive director Fatih Birol.

The IEA said the emergency stocks would be made available to the global market over a timeframe appropriate to the national circumstances of each member, bolstered by supplementary emergency measures from some countries.

A block on crucial shipments through the Strait of Hormuz has led to the loss of around 15m barrels of crude a day since the US and Israel started their war on Iran on February 28.

Reporting by Frank Prenesti for Sharecast.com