The International Energy Agency (IEA) announced readiness to use emergency oil reserves following Israel’s military attacks on Iran. OPEC immediately denounced the statement because they deemed it both superfluous and alarming.
IEA head Fatih Birol stated that global supply stability exists but strategic reserves hold 1.2 billion barrels for potential use. The warning about oil prices increased by 7% in one day emerged because of Middle Eastern conflict fears following the Russian invasion of Ukraine in 2022.
OPEC Secretary General Haitham Al Ghais stated that present supply and demand patterns do not require emergency measures or cause for concern. The IEA has created panic instead of stability according to him.
The situation escalated when Israel declared its military operations against Iranian nuclear sites and military bases because of suspected Iranian weapons development. The current situation has not affected energy facilities but market participants worry about potential infrastructure damage or Strait of Hormuz blockage which would disrupt oil transit.
The last major coordinated reserve release took place in 2022 after Ukraine’s invasion which OPEC strongly opposed at that time.
