Tensions Surge: Oil Markets on Edge Amid Middle East Conflict
The International Energy Agency (IEA) has vowed to release oil stocks in response to potential market shortages following Israel's attack on Iran. OPEC criticized the IEA's readiness as fear-inducing. Oil prices spiked 7% amid concerns over the conflict escalating and impacting energy infrastructure.
The International Energy Agency (IEA) declared its preparedness to release oil stocks if the market faces shortages following Israel's military actions against Iran. This announcement attracted criticism from OPEC, which accused the IEA of instigating fear in the market.
IEA's head, Fatih Birol, stated that despite the oil market being sufficiently supplied, the agency remains ready to intervene with its substantial stockpile of 1.2 billion barrels in strategic reserves. OPEC Secretary General, Haitham Al Ghais, denounced this stance, calling it alarmist and unwarranted amidst stable supply conditions.
Oil prices surged by 7%, marking the highest single-day increase since Russia's invasion of Ukraine in 2022, as market participants feared further escalation could impact energy infrastructure. The situation recalls the 2019 attack on Saudi Aramco by Iran-backed forces, though regional diplomatic relations have improved since.
(With inputs from agencies.)
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