The International Energy Agency (IEA) has proposed that member countries release emergency oil stocks to counter the price shock seen across the world in the wake of US and Israeli attacks on Iran.
The war, which began on 28 February, immediately impeded oil flows through the Strait of Hormuz. Nearly 20% of the world’s oil passes through the strait, transporting product from high-producing Middle East countries primarily to ports in Asia.
But export volumes of crude and refined products are currently at less than 10% of pre-conflict levels, which has seen the price of Brent crude soar from around $70 at the end of February to nearly $100 in recent days before dropping again slightly.
The inability of operators in the Gulf to transport their produce is forcing them to curtail production or make heavy use of storage facilities. The region’s output of liquefied natural gas (LNG) has also been significantly affected.
Nevertheless, global observed oil inventories rose considerably in 2025 to...