The International Energy Agency has announced plans to release about $400 million worth of emergency oil reserves to ease pressure on global markets following the conflict involving Iran and the United States.
The move comes amid concerns over disruptions near the Strait of Hormuz, a key shipping route linking the Persian Gulf with the Indian Ocean that carries around 20% of the world’s oil supply.
Rising tensions in the region have caused oil prices to surge and disrupted shipping routes, with vessels facing risks while passing through the strait.
The IEA said its member countries hold more than 1.2 billion barrels of emergency oil reserves, including stocks held by governments and oil companies. The agency plans to release supplies gradually across Asia, Oceania, Europe, and the Americas to stabilize the market.
