- The International Energy Agency (IEA) has agreed to release 400 million barrels of emergency oil reserves, marking the largest volume in its history.
- This unprecedented release aims to mitigate the impact of the ongoing war in the Middle East on global energy markets.
- The decision follows escalating tensions in the Persian Gulf, where Iran has attacked commercial ships and targeted oil infrastructure.
- Iran's actions, in response to US and Israel strikes, have severely disrupted cargo traffic through the crucial Hormuz Strait, through which a fifth of global oil is shipped.
- The conflict in the Strait of Hormuz escalated this week as Iran reportedly starting laying mines in the strait, and the U.S. responded by striking 16 mine-laying vessels. Under normal circumstances, around 20% of the world’s oil and natural gas is shipped through the narrow channel.
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