Ahmed Kamel – Egypt Daily News
The International Energy Agency announced on Wednesday that it will release 400 million barrels of crude oil from strategic reserves, the largest coordinated emergency release in the organization’s history, as the global energy market reels from disruptions caused by the ongoing conflict involving Iran, the United States and Israel.
The move comes as fears mount over the near-total halt of tanker traffic through the Strait of Hormuz, one of the world’s most critical energy corridors. Roughly one-fifth of the global oil supply normally passes through the narrow waterway linking the Persian Gulf to international markets.
Speaking at a press conference, IEA Executive Director Fatih Birol said the conflict has had severe repercussions for global energy security and economic stability.
“The conflict in the Middle East is having significant impacts on global oil and gas markets with major implications for energy security, energy affordability and the global economy,” Birol said.
Before the outbreak of war, about 20 million barrels of crude oil were transported daily through the Strait of Hormuz. According to Birol, tanker traffic through the route has now “all but stopped,” dramatically tightening global supply.
The emergency release, coordinated among the IEA’s 32 member countries, is intended to stabilize markets and compensate for disrupted shipments. Prior to the decision, member states collectively held about 1.2 billion barrels in strategic reserves.
The 400 million barrels being released would temporarily replace lost supply for roughly 20 days, according to the agency.
Energy markets have been volatile since the conflict escalated. U.S. benchmark crude prices hovered around $86 per barrel on Wednesday, representing a roughly 35 percent increase from a month earlier. Prices briefly surged to $119 per barrel earlier in the week before retreating amid speculation that diplomatic or military developments could restore supply routes.
Some analysts warn that if the Strait of Hormuz remains blocked for an extended period, global oil prices could climb to $150 per barrel or higher, triggering widespread economic consequences.
The warning was echoed by Saudi Aramco, the world’s largest oil exporter, which cautioned that continued disruption of tanker traffic could have “catastrophic consequences” for global energy markets.
Political uncertainty in Washington has also contributed to market volatility. Donald Trump has delivered mixed signals about the future of the conflict and the U.S. response to rising energy prices.
Earlier this week, Trump suggested the war could soon come to an end, comments that contributed to a temporary decline in oil prices. However, he also warned that Iran would face severe retaliation if it attempted to interfere with shipping through the Strait of Hormuz.
In a social media post, the U.S. president threatened that Iran would be “hit by the United States of America twenty times harder” if tanker traffic was obstructed.
Military planners are already preparing contingency options. According to Dan Caine, chairman of the Joint Chiefs of Staff, the U.S. military is examining potential operations to escort commercial vessels through the strait should the White House order such a move.
The tensions have begun to filter down to consumers. In the United States, the average price of gasoline has climbed sharply in recent weeks, reaching $3.57 per gallon compared with $2.97 a month earlier, according to data from AAA.
Despite the unprecedented scale of the reserve release, Birol emphasized that restoring normal shipping routes remains the key to stabilizing the market.
“This is a major action,” he said of the coordinated release. “But the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.”
Until that happens, analysts warn that global energy markets and the broader world economy, will remain highly vulnerable to further escalation in the Middle East.
