A record release of strategic oil reserves has been agreed to offset supply disruption stemming from the Middle East conflict. The International Energy Agency (IEA) will coordinate the release of 400 million barrels into the market. This decision follows talks with ministers from the G7 nations. Brent crude, the international benchmark, eased from highs above $118 per barrel following the announcement, trading at $92 a barrel before confirmation.
The conflict has shattered daily oil output and deliveries from the Gulf region, which typically exports about 15 million barrels per day. The threat to shipping has effectively closed the Strait of Hormuz, a critical chokepoint for global energy shipments.