New Delhi: Crude oil prices further declined on Wednesday after reports surfaced that the International Energy Agency (IEA) proposed the largest release of emergency reserves in its history to cool the price surge fuelled by the US‑Iran war.
The proposed release would surpass the 182 million barrels deployed in two tranches in 2022 following Russia’s invasion of Ukraine, according to multiple reports. The Group of Seven (G7) nations have asked the IEA to prepare scenarios for such a move, reports said.
Brent crude oil price fell 0.99 per cent to $86.93 a barrel, while US West Texas Intermediate (WTI) futures dropped 0.75 per cent to $82.82.
Overnight, both futures had settled down more than 11 per cent, marking the steepest single‑day decline in four years.
Brent prices had surged nearly 50 per cent since January after the closure of the Strait of Hormuz, a strategic passway that handled about one‑fifth of global oil flows. The disruption left tankers stranded, filled up storage capacity and forced producers to cut output, driving energy costs higher.
Oil prices had briefly approached $120 earlier in the week before retreating as traders reacted to comments from US President Donald Trump suggesting the conflict could end soon.
The US-Iran war entered its second week with no signs of resolution in sight. President Donald Trump warned Iran against placing mines in the Strait of Hormuz following reports of Iran having already done so or in preparations.
“If Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed, immediately!” President Trump posted Tuesday on social media, adding that removing the mines would be “a giant step in the right direction!”
The conflict’s economic impact is already being felt in the United States, where gasoline prices have begun rising sharply.
Meanwhile, a group of US lawmakers has introduced legislation which would temporarily suspend the federal gasoline tax to ease pressure on households.
(IANS)
