Germany and Austria to tap emergency oil reserves as prices surge

(TNND) — Germany and Austria agreed on Wednesday to release parts of their oil reserves after the International Energy Agency (IEA) requested members release a record 400 million barrels to help calm surging prices due to the Iran war.

Japan also said it would release some of its reserves on Monday.

The news came after the Group of Seven ministers met at IEA headquarters on Tuesday in Paris. IEA executive director Fatih Birol stated they discussed all available options, “including making IEA emergency oil stocks available to the market.”

“IEA Member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation,” Birol added.

Germany’s economy minister Katherina Reiche confirmed the country would release parts of its oil reserves following the IEA request “to release oil reserves amounting to 400 million barrels, which is a good 54 million tons.”

“Germany stands behind the IEA’s most important principle of mutual solidarity,” Reiche said.

Austrian Economy Minister Wolfgang Hattmannsdorfer explained during a news conference that his country was releasing part of the emergency oil reserve and extending the national strategic gas reserve.

“One thing is clear: in a crisis, there must be no crisis winners at the expense of commuters and businesses,” Hattmannsdorfer said.

G7 energy ministers on Tuesday announced they supported in principle “the implementation of proactive measures to address the situation, including the use of strategic reserves.”

Since the start of the war on Feb. 28, Iran has moved to stop cargo traffic in the Strait of Hormuz, where about a fifth of all oil is shipped from the Persian Gulf toward the Indian Ocean.

The U.K. Maritime Trade Operations agency said Wednesday morning that three ships had been hit by “unknown projectiles” near the Strait of Hormuz.

Iran’s Islamic Revolutionary Guard Corps (IRGC) on Tuesday claimed it had launched its “most intense and heaviest operation,” according to Iranian state media.

The attacks came after the U.S. military said Tuesday that it had destroyed Iranian mine-laying vessels near the strait. Sources told CNN that Tehran had begun laying mines in the key waterway.

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Editor’s note: The Associated Press contributed to this article.