The United States Department of Energy announced its plan to offload 172 million barrels from the strategic petroleum reserve ‘‘beginning next week,’‘ following significant volatility in oil prices triggered by the ongoing conflict in the Middle East.
In a post to X, the department indicated that the distribution process would ‘‘take approximately 120 days to deliver based on planned discharge rates."
Global oil prices have climbed steadily since 28 February, the date US and Israeli forces initiated air strikes against Iran.
The strikes, which resulted in the death of Iran’s former supreme leader, have since submerged the region into a deep state of war. Iranian retaliatory measures, involving drones and missiles, have effectively paralysed shipping through the strait. This has left global leaders struggling to mitigate the economic consequences.
Earlier, the International Energy Agency (IEA) ohad announced the release of 400 million barrels of oil from the emergency reserves of its 32 member countries to address supply disruptions amid the conflict. The emergency stocks will be released to the market based on the national circumstances of each member country and will be supplemented by additional emergency measures by some governments.
IEA member countries collectively hold more than 1.2 billion barrels in emergency reserves, along with around 600 million barrels of industry stocks maintained under government obligations.
However according to a Wall Street Journal report the move did lttle to interrup the price of Crude. Futures for Brent crude, the global benchmark, traded 4.8% higher to $91.98 a barrel.
Meanwhile, the US Energy agency further alleged that Iran was actively ‘‘threatening the energy security of America and its allies’‘ through manipulation and threats.
In response, Tehran cautioned that it was prepared for an extended military confrontation with the US and Israel, warning such a conflict would ‘‘destroy’‘ the global economy.
Despite these threats, US President Donald Trump pledged on Thursday to ‘‘finish the job,’‘ asserting that American military operations had already depleted the majority of viable Iranian targets.
Tensions have escalated near the strategic Strait of Hormuz--a vital maritime corridor for 20 per cent of global oil supplies. The disruption there has rattled energy markets, forcing international governments to trigger emergency reserve releases alongside a measured draw on US supplies.
Addressing the US-Israeli campaign during an appearance in Hebron, Kentucky, President Trump remained resolute, asking the crowd, ‘‘We don’t want to leave early, do we?"
The President confirmed that Washington intended to utilise US strategic reserves ‘‘a little’‘ to assist in market stabilisation. This coincides with a decision by the International Energy Agency to coordinate a record release of 400 million barrels.
While Trump previously hinted that the hostilities might be approaching a conclusion--claiming that with 28 Iranian mine-laying ships destroyed, there was ‘‘practically nothing left to target’‘--he maintained total control over the timeline.
‘‘Any time I want it to end, it will end,’‘ the President remarked during an interview with Axios.
However, the Israeli military has offered a different assessment, suggesting the operation is ongoing and that their forces maintain ‘‘a broad bank of targets."
Source: ANI
--Agencies
