IEA chief warns of oil market risks linked to Strait of Hormuz

Around 2.5 to 3 million barrels of oil per day are being released from strategic reserves by International Energy Agency (IEA) member states, underscoring rising pressure on global energy markets amid instability around the Strait of Hormuz, IEA Executive Director Fatih Birol said at Chatham House in London.

He recalled that in early March, amid the conflict involving the United States, Israel, and Iran and subsequent restrictions on oil supplies from the Persian Gulf through the Strait of Hormuz, IEA member states decided on the largest-ever release of strategic reserves — around 400 million barrels.

According to Birol, this represents about 80% of available reserves, with the remaining volumes potentially available if needed.

The IEA chief warned that if the Strait of Hormuz is not reopened, global markets could “enter the red zone” in July–August with the start of the tourist season.

By Jeyhun Aghazada