IEA chief says release of oil reserves had a'strong impact on markets'

Fatih Bibil, the IEA Executive Director, said that the IEA has released 400 million barrels of 'oil from its global strategic reserves, and this decision already had a "strong effect" on the energy markets, which are now in an "extremely critical period" following the closure of Strait of Hormuz.

Birol stated at a press conference in Istanbul that the coordinated action taken by the International Energy Agency to counter the Iran War was designed?to stabilize oil markets.

He declined to answer a question about the pace of releasing stockpiles each day.

The IEA, a group of oil-consuming countries, recommended on Wednesday releasing 400 million barrels of global strategic reserves in order to'mollify one of 'the worst oil shocks ever since the 1970s. This is the largest intervention of its kind in history.

Birol called the IEA's decision "a very significant development" and said that "we are already seeing a powerful impact".

The Middle East is causing a critical situation in global energy markets. He said that the closure of 'Strait of Hormuz' has caused major disruptions to the global 'oil and natural gas markets.

Donald Trump, the U.S. president, said that the IEA 'decision would "substantially reduce" oil prices in the midst of the U.S. and Israel war with Iran. Meanwhile, Tehran 'warned oil could reach $200 a bar after hitting?tankers near the Strait of Hormuz. (Reporting and editing by Jonathan Spicer; Additional reporting by Ece toksabay)

(source: Reuters)