Link Securities | According to The Wall Street Journal, sources familiar with the matter say that the International Energy Agency (IEA) has proposed the largest release of reserves in its history to lower oil prices, which have skyrocketed during the US and Israeli military conflict with Iran.
According to some officials, the release could exceed the 182 million barrels of oil that EIA members put on the market twice in 2022 when Russia launched its full-scale invasion of Ukraine. The proposal was circulated at an emergency meeting held yesterday, Tuesday, by the 32 member countries of the EIA.
The countries are expected to decide on the proposal today, Wednesday, and it will be agreed upon if none of them raise objections, although the protest of just one of them could delay the adoption of the measure.
The IEA’s proposal aims to counteract the massive disruption caused by the near-total closure of the Strait of Hormuz, the narrow channel connecting the Persian Gulf to global markets. About a fifth of the world’s oil supply passes through the strait every day, and the threat of attacks on oil tankers by Iran has brought shipments to a near standstill.
