The head of the International Energy Agency (IEA), Fatih Birol, stated on Monday that more strategic petroleum reserves could be released if necessary to mitigate the impact of the near-total supply disruption in the Strait of Hormuz caused by the war on Iran.
In a video statement, Birol said, "When considering government stockpiles and industry reserves held under government obligation together, there remains a surplus of over 1.4 billion barrels. This means we can take further action later if needed."
He added that additional releases could only serve as a "buffer" to address the current supply blockage. The disruption has forced major Gulf oil producers to significantly cut production.
Birol stated, "The single most important factor for restoring stable oil and gas flows is the resumption of shipping through the Strait of Hormuz." He further noted that while economies and consumers are being impacted by the oil supply cuts, further strategic reserve releases are "not a lasting solution."
In its latest monthly report released last week, the IEA described the war launched by the United States and Israel on February 28 as "causing the largest supply disruption in the history of global oil markets." The report indicated that current crude oil production has been reduced by at least 8 million barrels per day.
The conflict has led Iran to tighten its control over the Strait of Hormuz, through which one-fifth of the world's crude oil passes, effectively shutting it down almost completely. The IEA reported that current traffic through the strait is less than 10% of pre-crisis levels—which were about 15 million barrels per day in 2025—and there are "no signs of de-escalation in hostilities, nor a clear timeline for the resumption of strait traffic."
Oil prices, which were around $60 per barrel before the conflict, nearly doubled at one point but have since retreated to near $100 per barrel following the IEA's agreement on March 11 to conduct its largest-ever coordinated release of 400 million barrels from strategic reserves.
Birol said this release has had a "calming effect," but he also noted that markets still face "significant challenges." He mentioned that countries including Colombia, India, Singapore, Thailand, and Vietnam are prepared to commit to supporting further releases.
On Tuesday, oil prices fell after a Pakistani tanker became the first non-Iranian vessel to transit the Strait of Hormuz with its automatic identification system activated. Data from the monitoring agency Marine Traffic showed that the U.S. benchmark West Texas Intermediate crude subsequently plunged more than 5% to $93.37 per barrel, while the international benchmark Brent crude fell 2.77% to $100.28 per barrel.
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