The International Energy Agency (IEA) will release 400 million\nbarrels of oil to compensate for supply losses resulting from the\nclosure of the Strait of Hormuz following US-Israel attacks on Iran.<\/p>\n
The announcement was made on Wednesday, 11 March, by IEA Executive\nDirector Fatih Birol, after the Iranian government threatened not to\nallow \u201ca single litre\u201d of crude oil to pass through the waterway, which\nhas historically transported over 20% of global oil supplies.<\/p>\n
Birol stated that all 32 IEA member countries agreed to release the\nlargest strategic oil reserves in the organisation\u2019s history.<\/p>\n
Despite this measure, oil prices rose again on Thursday, 12 March.\nBrent crude surged more than 9% in Asian trading, exceeding US$100 per\nbarrel, before correcting to around US$97.50.<\/p>\n
The IEA is an international organisation that coordinates energy\npolicy and manages strategic oil reserves for 32 industrialised nations,\nprimarily advanced economies in Europe, North America, and the\nAsia-Pacific region.<\/p>\n
The announcement came after several days of blockade activity in the\nStrait of Hormuz. In recent hours, the region experienced a series of\nattacks on three cargo vessels, with at least one attack claimed by\nTehran.<\/p>\n
Simultaneously, Iraq reported that two foreign oil tankers were also\nattacked at one of its ports.<\/p>\n
Hours after the IEA statement, the United States government announced\nit would release 172 million barrels of oil from its emergency reserves\nas part of a coordinated international effort to reduce global energy\nprices.<\/p>\n
Delivery of US strategic oil reserves is expected to begin next week\nand will continue for approximately 120 days.<\/p>\n
An unprecedented challenge<\/p>\n
\u201cThe scale of the challenge we face in the oil market is truly\nunprecedented. Therefore, I am very pleased that IEA member countries\nhave responded with a collective emergency measure that has also never\nbeen undertaken before,\u201d said IEA Executive Director Fatih Birol.<\/p>\n
The IEA explained that emergency reserves would be released to the\nmarket over a timeframe adjusted to suit each member country\u2019s national\nconditions.<\/p>\n
The 400 million barrels of oil are equivalent to four days of global\nconsumption or the volume that normally flows through the Strait of\nHormuz over 20 days.<\/p>\n
This marks the sixth time the IEA has approved a coordinated\nstrategic reserve release. Previous releases occurred in 1991, 2005,\n2011, and twice in 2022.<\/p>\n
According to the agency\u2019s data, IEA member countries hold more than\n1.2 billion barrels of emergency reserves, in addition to approximately\n600 million barrels held by the oil industry to meet legal obligations\nset by their respective governments.<\/p>\n
Brent and WTI crude prices stood at around US$60 before the Iran\nconflict erupted on 28 February, a historically low level due to\nabundant supplies.<\/p>\n
The conflict pushed oil prices above US$100 per barrel, though they\nhad fallen to the US$80-US$90 range in recent days.<\/p>\n
However, a fresh wave of attacks launched by Iran in recent hours\nagainst tankers attempting to transit the Strait of Hormuz has driven\ncrude oil prices above US$100 again.<\/p>\n
In early Thursday trading, Brent crude surged more than 9% on Asian\nmarkets and briefly exceeded US$100 per barrel, before correcting to\naround US$97.50.<\/p>\n
Regardless, fuel prices have risen across nearly all countries, and\nmany governments are preparing emergency measures should the energy\ncrisis worsen.<\/p>\n
On Wednesday, 11 March, the Iranian government stated it had ended\nits reciprocal military attack policy and would now focus on blockading\nthe Strait of Hormuz.<\/p>\n
Analysts view this as an attempt to leverage control over the strait\nto drive up oil prices and increase the cost of war for the United\nStates and its allies.<\/p>\n
Tehran\u2019s new policy will be \u201cattack after attack,\u201d said spokesman for\nthe Khatam al-Anbiya Command Headquarters, Ebrahim Zolfaqari, in a\nstatement.<\/p>\n
He stressed that Iran would not allow \u201ca single litre of oil\u201d to pass\nthrough the Strait of Hormuz bound for the United States, Israel, or\ntheir allies.<\/p>\n
\u201cEvery ship or tanker heading to them will be a legitimate target,\u201d\nhe warned.<\/p>\n
\u201cPrepare to see oil prices reach US$200 per barrel, because oil\nprices depend on the regional security you have disrupted,\u201d he said.<\/p>\n
On Wednesday, 11 March, three vessels were attacked in the Strait of\nHormuz. Two vessels sustained damage, whilst another cargo ship flying a\nThai flag, identified by the Thai Navy as MV Mayuree Naree, caught fire\nfollowing an attack off the coast of Oman.<\/p>\n
According to Thai maritime authorities, the vessel was struck by a\nprojectile that ignited a fire on board. The Omani Navy was deployed to\nthe location to assist in rescue and evacuation operations for 20 crew\nmembers. All crew were Thai nationals, with three sustaining\ninjuries.<\/p>\n
The Iranian government claimed responsibility for the attacks.<\/p>\n
Shortly thereafter, an Iraqi armed forces spokesman reported that one\ncrew member was killed and 38 others rescued following attacks on two\noil tankers.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dozens-of-countries-release-largest-oil-reserve-in-history-1773373988", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }