US to release 172 million barrels of oil to stabilise markets as Middle East conflict escalates

The United States Department of Energy has revealed plans to release 172 million barrels of oil from its strategic petroleum reserve starting next week. This decision comes after oil prices experienced major fluctuations due to the escalating conflict in the Middle East. According to a post on X, the department stated that it would take about 120 days to deliver the oil based on the planned release rates. Since February 28, when US and Israeli forces began air strikes against Iran, global oil prices have steadily increased. These strikes led to the death of Iran’s former supreme leader and plunged the region into a severe war. In response, Iran has launched drone and missile attacks, which have disrupted shipping through the strait and left world leaders struggling to manage the economic fallout. Previously, the International Energy Agency (IEA) announced it would release 400 million barrels of oil from the emergency reserves of its 32 member countries to tackle supply issues caused by the conflict. The release will vary based on the specific situations of each member country and will be complemented by extra emergency actions from some governments. IEA members collectively hold over 1.2 billion barrels in emergency reserves and about 600 million barrels in industry stocks maintained by government requirements. However, a report from the Wall Street Journal noted that this action did little to lower crude oil prices. Futures for Brent crude, the global standard, rose by 4.8% to $91.98 a barrel. Meanwhile, the US Energy agency accused Iran of actively endangering the energy security of America and its allies through threats and manipulation. In turn, Tehran warned that it is ready for a long military conflict with the US and Israel, claiming such a war would "destroy" the global economy.