The Wall Street Journal (WSJ) reported on the 10th (local time) that the International Energy Agency (IEA) proposed the largest-ever release of strategic reserves to bring down crude prices that surged after U.S. and Israeli strikes on Iran.
Citing people familiar with the matter, the WSJ said the volume this time is expected to exceed the level during Russia's 2022 invasion of Ukraine. At that time, IEA member countries released a total of 182 million barrels of reserves in two rounds.
Officials from the IEA's 32 member countries discussed the plan at an emergency meeting that day and are expected to decide on the proposal on the 11th. If no country objects, the reserve release plan will be adopted as is. However, if even one objects, the plan could be delayed, the officials said.
The IEA's proposal is a response to the surge in crude prices after U.S. and Israeli attacks on Iran effectively closed the Strait of Hormuz. The strait is a strategic chokepoint that handles one-fifth of the world's crude shipments. With transport largely halted due to Iran's threats to attack tankers, international oil prices are highly volatile.
Reuters said, "Right after the WSJ report on the reserve release proposal, West Texas Intermediate (WTI) futures fell 0.44% and Brent futures fell 0.25%, showing a downward trend."