International Energy Agency to convene amid oil reserve discussions

The International Energy Agency (IEA) is scheduled to hold an emergency meeting on Tuesday to assess the current security of supply and market conditions in the Middle East. The meeting comes as tensions between the US and Iran continue to escalate, fueling global uncertainty.

Representatives from IEA member states will gather to evaluate the impact of the conflict on oil production and shipping disruptions. This assessment aims to inform a decision on whether to release emergency stocks into the market.

Oil prices have reached their highest levels since mid-2022 due to concerns over prolonged shipping disruptions linked to the war and reduced output from key producers in countries targeted by Iranian strikes. The Strait of Hormuz, a critical waterway for global oil supplies, has been effectively shut down as a result of the conflict.

The IEA meeting follows discussions among G7 countries on possible actions to stabilize global energy markets. European governments are concerned about the prospect of another energy crisis, similar to one experienced in 2022 when prices surged to record highs following Russia’s invasion of Ukraine.

G7 energy ministers met earlier on Tuesday and stopped short of deciding on releasing strategic oil reserves. Instead, they asked the IEA to assess the situation before taking action. The agency will present an in-depth analysis of the pros and cons of releasing stocks now.

The European Union’s Energy Commissioner stated that the IEA would provide a detailed assessment of the potential impact of releasing emergency stocks. French Finance Minister Roland Lescure noted that everyone is willing to take measures to stabilize the market, including the US, and that the EU needs to be prepared to act at any moment.

Source: Al Jazeera