Oil prices continued to decline on Wednesday after reports that the International Energy Agency (IEA) is preparing the largest emergency oil stock release in its history, a move that is intended to relieve the supply crisis.
International benchmark Brent crude traded at 86.23 per barrel at 9.41 a.m. local time (0641 GMT), down 3.57% from the previous close of $89.44.
US benchmark West Texas Intermediate (WTI) decreased 3.11% to $82.69 per barrel, compared with $85.35 in the previous session.
The IEA's planned release is expected to exceed the 182 million barrels of oil that member countries supplied to the market in 2022 after the outbreak of the Russia–Ukraine War.
Earlier, IEA Executive Director Fatih Birol said member countries currently hold more than 1.2 billion barrels of public emergency oil stocks. In addition, about 600 million barrels of industry stocks are held under government obligations.
Experts note that such a move could help offset some supply disruptions caused by the war between the US–Israel alliance and Iran. However, they warn that a prolonged closure of the Strait of Hormuz would severely disrupt supply in many regions.
Oil markets experienced sharp volatility at the beginning of the week. The price of Brent crude climbed to $114.3 per barrel on Monday, its highest level since June 2022, driven by supply concerns. Prices later retreated during the day after US President Donald Trump said the war with Iran could end soon.
However, prices declined on Tuesday after a now-deleted social media post by US Energy Secretary Chris Wright, claiming that the US Navy was escorting a tanker through the Strait of Hormuz, accelerated selling and deepened losses.
White House Press Secretary Karoline Leavitt later said the US Navy was not currently escorting any tanker or vessel but that such an option remained on the table. She added that, under Trump's instructions, the US military is preparing additional scenarios to keep the Strait of Hormuz open.
Reports in US media that Iran had placed mines in the strait helped prices partially recover after the sharp drop.
In a social media post, Trump said: "If Iran has placed any mines in the Strait of Hormuz, which we have no reports of, we want them removed immediately. If for any reason mines were placed and are not removed immediately, the military consequences for Iran will be at a level never seen before."
In another post, Trump said some inactive mine-laying boats in the strait had been struck.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
