Australia's Energy Minister announced on Friday that the country will release up to 762 million litres of petrol and diesel from domestic reserves, following a relaxation of stockholding rules to counter supply disruptions linked to the Iran conflict. Additionally, the Australian government plans to reduce minimum fuel stockholding obligations by up to 20% to address these disruptions [1].
Meanwhile, West Texas Intermediate (WTI), the US crude oil benchmark, has experienced significant volatility. According to one report, WTI was down 1.05% on the day at $93.85 [1], while another source stated that WTI climbed above $95.50, trading around $95.75 during early Asian trading hours on Friday, driven by the effective closure of the Strait of Hormuz amid conflict involving the US, Israel, and Iran [2]. This discrepancy in WTI pricing highlights the market's sensitivity to geopolitical developments.
Iran’s new supreme leader, Mojtaba Khamenei, in his first public statement since being appointed, declared that the closure of the Strait of Hormuz should be continued as a “tool to pressure the enemy,” and threatened that all US military bases in the region should be immediately closed or face attack [2]. The International Energy Agency (IEA) warned that the US-Israeli war on Iran was "creating the largest supply disruption in the history of the global oil market" [2]. US crude oil prices have risen more than 40% since the start of the war [2].
To mitigate the economic impact of the conflict, the IEA announced on Wednesday that it will release a record 400 million barrels of oil, coordinated through emergency reserves, to add temporary supply to the market and prevent a sharp spike in oil prices [2]. The release of reserves by Australia and the IEA may help cap the upside for oil prices, providing some relief to global markets [1][2].
CONCLUSION
The ongoing conflict involving Iran, the US, and Israel has led to significant disruptions in global oil supply, causing sharp movements in WTI prices. Australia and the IEA are releasing substantial fuel reserves to stabilize the market. Despite these interventions, the situation remains highly volatile, with geopolitical risks continuing to drive market sentiment.