IEA Ready to Draw on Global Oil Stocks if Crisis Escalates
The International Energy Agency (IEA) has signaled it is ready to intervene in oil markets again if the crisis linked to the war with Iran escalates. Its head, Fatih Birol, said he hoped for stabilization without further emergency action but added that the organization was prepared to act in the event of an energy shock.
Last month, the agency carried out the largest coordinated release of stockpiles on record – up to 400 million barrels of oil – with a significant share provided by the United States from its strategic reserves.
The war has significantly disrupted global energy supplies and damaged dozens of key facilities in the Middle East, according to available data. The situation has been exacerbated by production curtailments and the closure of the Strait of Hormuz, pushing oil prices toward $100 per barrel.
Birol also warned that releasing stocks is not a long-term solution but a temporary tool to mitigate the impact of the crisis.