The US will release 172 million barrels of oil

The United States will tap into its strategic oil reserves and release 172 million barrels onto the market. Washington is responding to the sharp rise in prices that followed supply disruptions caused by the US and Israeli war against Iran.

Energy Secretary Chris Wright said the move was part of a broader co-ordinated action by 32 countries in the International Energy Agency, which have agreed to release a total of 400 million barrels.

Supplies from US reserves are set to begin next week and will last for about four months. Tensions in the market are also heightened by Iran’s threats to block oil routes in the Persian Gulf if the attacks do not stop.

President Donald Trump has admitted that US reserves will be ‘reduced slightly’. Washington also claims it will replenish reserves by more than 200 million barrels next year.

(reuters, pir)