The International Energy Agency has announced plans to release 400 million barrels of oil to help ease the global supply shortage.

The agency’s Executive Director, Fatih Birol, disclosed this on Wednesday during a broadcast.

Birol said the decision followed a unanimous agreement among member countries after supply disruptions linked to the ongoing conflict involving the United States and Israel against Iran.

Birol said the International Energy Agency would launch what he described as the largest oil release in the agency’s 50-year history.

“Dear colleagues, as a result of the discussions among IEA members, I can now announce that IEA countries have unanimously decided to launch the largest ever release of emergency oil stocks in our agency’s history.

“IEA countries will be making 400 million barrels of oil available to the market to offset the supply lost due to the effective closure of the strait.

“This action aims to alleviate the immediate impact of disruption in markets,” he stated.

However, Birol said that while the release would help ease current supply pressures, the key to restoring stable oil and gas flows remains the resumption of shipping through the Strait of Hormuz.

“Dear colleagues, in this context, the IEA will continue to monitor the market and make further recommendations to IEA members,” he noted.

The move comes after Group of Seven (G7) finance ministers discussed a coordinated release of oil from emergency reserves under the IEA’s guidance.

The talks took place on Monday amid the ongoing Middle East conflict, which has been driving up global oil prices.