Brent crude fell below $90 per barrel on Wednesday, while WTI slipped under $85, as reports emerged that the International Energy Agency (IEA) is considering the largest release of oil reserves in its history.
The proposed release would exceed the 182 million barrels distributed by IEA members in 2022, during Russia’s invasion of Ukraine.
The move comes at a tense time for global oil markets. Prices have been pushed higher by the ongoing conflict involving the U.S., Israel, and Iran, and by disruptions to shipping through the Strait of Hormuz, a vital passage for roughly 20% of the world’s oil supply.
The IEA is convening a meeting of its member states to decide on the proposal, which could be implemented if no country objects. Even a single protest could delay the release, adding to uncertainty. Traders reacted quickly to the news, hoping that the move could ease surging crude prices, which recently touched four-year highs.
The situation in the Middle East remains unpredictable. U.S. President Donald Trump suggested the conflict could end soon, but military operations are intensifying. Confusion over U.S. actions added to market jitters when Energy Secretary Chris Wright mistakenly claimed that a Navy convoy had escorted an oil tanker through the Strait of Hormuz, a statement later corrected by the White House.
Adding to the pressure, major oil producers in the Middle East have cut output by more than six million barrels per day as the Strait of Hormuz remains effectively closed. The combination of tight supply and geopolitical uncertainty keeps traders on edge, making oil markets extremely volatile.
