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A record release of emergency oil reserves by the International Energy Agency (IEA) is meant to calm global markets shaken by Middle East tensions, but experts warn the move may not be enough to prevent higher fuel prices in Cyprus.
The IEA announced Wednesday that member countries will release 400 million barrels of oil into the global supply, the largest coordinated action of its kind, after disruptions near the Strait of Hormuz threatened one of the world’s most critical energy routes.
The strait, through which roughly 20% of global oil shipments normally pass, has become increasingly unsafe for tanker traffic amid escalating military activity in the region. The disruption has tightened supply and pushed oil prices upward, raising concerns about the cost of fuel and electricity worldwide.
Although the emergency release is designed to stabilize markets and prevent panic, analysts say it is only a temporary buffer. Large volumes of oil remain unable to reach international buyers, meaning price pressure could continue if the situation does not improve quickly.
For Cyprus, a country fully dependent on imported fuel, global price swings often reach consumers quickly. Higher crude oil costs typically lead to more expensive petrol and diesel, while also increasing energy production costs that can affect electricity bills and transport prices.
Oil markets showed little sign of relief following the announcement, with prices remaining elevated as traders focused on the ongoing security risks rather than the additional supply.
Energy experts say the IEA intervention can slow price increases but cannot fully offset the impact of a prolonged disruption in the Gulf region. A lasting drop in prices, they add, would likely require a de-escalation of military tensions and the safe reopening of shipping routes.
*With information from CNN
