German economy minister Reiche: Release of reserves has not had desired effect because attacks on ships continue

The International Energy Agency (IEA) has coordinated the release of 400 million barrels of emergency oil reserves to address surging energy prices caused by disruptions in the Persian Gulf, but German Economy Minister Katherina Reiche stated that the measure has not yet achieved its intended effect. The ongoing attacks on commercial ships and the closure of the Strait of Hormuz continue to disrupt oil flows, undermining efforts to stabilize markets.

The IEA's action, the largest in its history, aims to offset reduced exports from the region, which are currently at less than 10% of prewar levels. Germany, Austria, and Japan have pledged to release portions of their reserves, with Germany committing to deliver 2.64 million tons (approximately 19.7 million barrels). However, Reiche emphasized that persistent attacks on shipping and infrastructure have limited the impact of these releases.

Iran's campaign to block cargo traffic through the Strait of Hormuz—where 20% of global oil shipments pass—has compounded supply challenges, while strikes on Gulf oil facilities have disrupted refining operations. IEA Executive Director Fatih Birol reiterated that “the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz”.

To mitigate price volatility, Germany has introduced measures to cap fuel price increases at once per day, while Austria will limit price hikes to three times weekly. Despite these steps, analysts caution that the long-term solution depends on resolving the geopolitical tensions fueling the crisis. The IEA's reserves, established in 1974, remain a critical tool for short-term stabilization, but sustained market recovery hinges on restoring secure shipping routes.