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IEA Says Middle East Oil Shock Worse Than 1970s, Weighs More Emergency Oil Releases

Reopening the Strait of Hormuz is described as the fastest way to restore supply.

Overview

  • Fatih Birol labels the disruption severe and escalating, surpassing both 1970s oil crises combined.
  • The agency is consulting governments on potential coordinated strategic petroleum reserve releases with no preset price trigger.
  • Attacks and blockages constraining traffic through the Strait of Hormuz have tightened flows and pushed oil prices higher.
  • Fuel shortages are starting to surface in parts of Asia as supply strains reach consumers.
  • Australia is increasing fuel stockpiles to build buffers, with Birol saying he is not yet worried about its current levels.