The International Energy Agency said Wednesday that its member nations unanimously agreed to release 400 million barrels of oil from emergency reserves after the conflict with Iran effectively shut down tanker traffic through the Strait of Hormuz, a key global shipping route.
The agency did not provide a specific timetable for the drawdown, which would mark the largest coordinated release ever by IEA countries. In a statement, the organization said further details on how the action will be carried out will be provided later.
The Iran conflict has effectively halted tanker traffic through the Strait of Hormuz after threats from Iran’s military. Roughly 20 million barrels of oil normally pass through the waterway each day, a key share of the more than 100 million barrels of crude consumed globally.
At least three vessels in the region were struck by projectiles on Wednesday, according to the United Kingdom’s maritime trade monitoring agency. Insurers, energy firms and cargo operators have since reduced activity in the area, restricting flows of oil and liquefied natural gas.
The IEA said its 32 member nations, including the United States, Britain, Japan, Germany, Canada, Australia, Italy and Mexico, collectively hold more than 1.2 billion barrels in emergency reserves.
