IEA rules out emergency oil stock release despite Hormuz disruption

The International Energy Agency (IEA) has said it has no plans for a coordinated release of emergency oil reserves for now, even as crude flows through the Strait of Hormuz remain disrupted following the outbreak of war between the United States and Iran.

Speaking in Brussels after meeting European Union commissioners, Fatih Birol, IEA executive director, said global oil markets remain adequately supplied, noting that the current turmoil stems primarily from logistical disruptions rather than a shortage of crude.

“Today, there is plenty of oil in the market. I repeat: there is plenty of oil in the market,” Birol said. “Our problem is a problem of dislocation — a problem of logistics. And it is creating challenges for many countries, some more than others.”

According to him, the disruption has largely been driven by shipping bottlenecks and security concerns around the Strait of Hormuz, a strategic waterway through which roughly one-fifth of the world’s seaborne oil trade typically passes.

Birol said he has held discussions in recent days with major oil-producing countries, including the United States, Brazil, Saudi Arabia, Azerbaijan, Norway, and Canada, as well as major consuming nations such as the United Kingdom, Turkey, Singapore, India, Japan, and South Korea, as governments seek ways to stabilise global supply chains.

“Everybody is trying to find a solution,” he said.

While member governments are keeping “all options on the table,” Birol said current market conditions do not justify a coordinated release of strategic reserves.

“Based on my discussions with IEA member governments and looking at current market conditions, there are no plans for a collective action at this stage,” he said. “We are facing a temporary disruption — a logistical disruption.”

However, the agency has warned that if the blockade of the Strait of Hormuz persists for an extended period, it could push the global oil market into deficit despite a supply surplus recorded earlier this year.