The International Energy Agency has begun emergency consultations with member countries to evaluate the possibility of releasing strategic oil reserves as global energy markets reel from the ongoing Middle East conflict.
The agency convened crisis talks with member governments to assess the stability of global oil supply and determine whether emergency stockpiles should be deployed to stabilise the market.
Speaking after a meeting of Group of Seven energy ministers in Paris, IEA Executive Director Fatih Birol said oil market conditions had deteriorated in recent days due to supply disruptions and mounting geopolitical tensions.
According to him, significant production losses and threats to shipping routes, particularly through the strategic Strait of Hormuz, have created serious risks for global energy supplies.
Birol noted that the emergency meeting was called to evaluate the current supply situation and guide decisions on whether member states should release oil from their strategic reserves to ease pressure on the market.
Global crude prices have experienced dramatic volatility in recent days. On Monday, oil prices surged nearly 30 percent, briefly approaching $120 per barrel, before retreating later in the day as markets reacted to evolving geopolitical developments.
Prices eased further on Tuesday after Donald Trump suggested the war involving the United States, Israel, and Iran could soon come to an end.
Despite the temporary relief in prices, uncertainty remains high. Iranian authorities earlier warned that no oil shipments would leave the Gulf if the military campaign against the country continues.
The IEA revealed that its member countries currently maintain more than 1.2 billion barrels of public emergency oil reserves, in addition to roughly 600 million barrels of industry-held stocks stored under government mandates.
Officials say these reserves could be released to the market if supply shortages worsen.
Meanwhile, Gilberto Pichetto Fratin said countries are prepared to demonstrate solidarity by tapping into stockpiled reserves if the closure of the Strait of Hormuz disrupts global oil availability.
Similarly, Roland Lescure noted that while the situation had not yet reached the point where reserves must be deployed, preparations were underway to ensure governments can respond swiftly to any escalation.
The Paris-based energy agency was established after the 1973 global oil crisis to coordinate responses to major supply disruptions.
Under its rules, member countries must maintain emergency oil reserves equivalent to at least 90 days of their net oil imports to safeguard global energy security.
