LONDON : According to a report by The Wall Street Journal, the IEA has proposed a massive withdrawal from strategic petroleum reserves held by its member countries in an effort to bring down rising global oil prices triggered by the ongoing war in the Middle East.

The proposed release would exceed the 182 million barrels of oil that IEA member nations released in two phases in 2022, following the outbreak of the Russia-Ukraine war, which disrupted global energy markets.

The report said the agency held an extraordinary meeting of its member states on Tuesday to discuss the proposal. A final decision on whether to proceed with the unprecedented release is expected later today.

Under the agency’s rules, the plan could move forward if none of the member countries object. However, opposition from even a single member state could delay or block the proposal.

News of the potential intervention had an immediate impact on markets. US West Texas Intermediate (WTI) and Brent crude futures fell after the report was published, reflecting expectations that additional supply could help ease price pressures.

Oil prices had earlier climbed to their highest level in nearly four years last Monday, driven by fears that the widening conflict between the United States, Israel and Iran could disrupt global energy supplies.

Prices eased on Tuesday after US President Donald Trump suggested that the Middle East conflict could soon come to an end, helping calm some market concerns.

Meanwhile, G7 energy ministers stopped short of agreeing to tap strategic reserves during their discussions yesterday. Instead, they requested that the International Energy Agency assess the evolving market situation before any coordinated action is taken.