IEA Plans Record Oil Reserve Release

The International Energy Agency (IEA) is preparing to call for the largest release of government oil reserves in its history, approximately 400 million barrels, to mitigate crude price volatility and supply shortages. This intervention, more than double the 182 million barrels released in 2022 following Russia's invasion of Ukraine, aims to address market disruptions caused by the US-Israeli attacks on Iran and the effective closure of the Strait of Hormuz.

The Paris-based agency is expected to issue its recommendation on Wednesday at 1300 GMT, ahead of a G7 leaders' meeting chaired by French President Emmanuel Macron at 1400 GMT.

The proposed release represents about one-third of the IEA's total government stockpiles. Member states, which are required to hold at least 90 days' worth of crude supplies, would have up to 90 days to release these stocks into the global market.

The G7 nations have expressed support in principle for using strategic oil reserves to stabilize the market, which has seen Brent crude prices fluctuate, briefly reaching $119.50 a barrel on Monday before settling around $90 a barrel following intervention reports. The Strait of Hormuz closure has reportedly removed nearly 20 million barrels of crude per day from the market.