EU proposes coordinated use of oil reserves to stabilise markets Amid Middle East crisis

The European Commission has proposed coordinated measures to stabilise energy markets, including the potential release of strategic oil reserves, as disruptions linked to the situation in the Strait of Hormuz continue to affect global supply and prices.

European Commission President Ursula von der Leyen said during a College meeting on the impact of the Middle East crisis on the European Union that the Commission is also proposing adjustments to the market stability reserve system, Caliber.Az reports per the statement.

She said the Commission was strengthening the mechanism by increasing its capacity and stopping the cancellation of emissions allowances, arguing that these steps would improve overall market stability.

Von der Leyen also said the European Commission would propose using EU oil reserves to influence prices and help stabilise energy markets. She added that any release of reserves would be coordinated at the EU level in order to maximise effectiveness and prevent individual member states from acting unilaterally, which could undermine the single market.

She noted that the issue was being discussed at the European Council meeting in Cyprus and stressed the need for joint action among member states to mitigate the economic impact of the crisis.

By Sabina Mammadli