The International Energy Agency (IEA) has proposed releasing the largest-ever volume of oil from strategic reserves to stabilize the global market. According to The Wall Street Journal, the initiative was presented at an emergency meeting of representatives from 32 member countries on March 10, with a final decision expected on March 11. The potential release volume exceeds 182 million barrels, matching the amount released in 2022 after the start of Russia's war against Ukraine.

The proposal is linked to severe supply disruptions due to the near-total closure of the Strait of Hormuz amid a military operation by the US and Israeli regimes against Iran. This strait handles about 20% of global oil shipments daily, so its blockage immediately impacted markets. Oil prices surged by approximately 40%, surpassing $100 per barrel, later falling to around $84, but fuel prices, including diesel, continue to rise.

IEA Executive Director Fatih Birol stated that member countries hold about 1.2 billion barrels of strategic oil reserves, with another 600 million barrels in commercial reserves. Experts estimate these volumes are sufficient to compensate for about 124 days of lost supplies from the Persian Gulf. However, the plan may be delayed if at least one member country opposes it.

WSJ notes that IEA countries have already released oil from reserves twice in 2022 after the start of Russia's war against Ukraine. At that time, energy prices initially rose by about 20%, but analysts later noted that this move helped stabilize the market. In the current situation, economists warn that further increases in energy costs could accelerate inflation, trigger corrections in stock markets, and lead to higher automotive fuel prices.

Source: kun.uz