By: Economy Middle east

Oil prices decreased during Asian trade on Wednesday following reports from the Wall Street Journal that the International Energy Agency (IEA) is planning its largest-ever emergency oil reserve release to offset the impact of the Iran war.

Brent oil futures for May fell 0.93 percent to $86.98 a barrel, while West Texas Intermediate crude futures declined 0.19 percent to $83.29 a barrel by 05:25 GMT. Prices experienced significant volatility immediately after the report before trending steadily lower.

Earlier this week, oil prices surged to nearly $120 a barrel due to concerns over supply disruptions in the Middle East. However, these gains were quickly reduced following reports of coordinated reserve releases and other measures aimed at mitigating the supply impact. Despite the downward trend, crude prices remain volatile as the market monitors geopolitical developments.

The proposed IEA action reportedly involves a release exceeding the 182 million barrels deployed in 2022. Member countries currently hold approximately 1.2 billion barrels in public emergency reserves, which officials suggest could cover over 120 days of lost supply from the Gulf region.