IEA Head Says Oil Stockpiles Declining After Strait of Hormuz Blockade

The head of the International Energy Agency said oil stockpiles are declining rapidly because of the Iran conflict and the blocking of the Strait of Hormuz. Fatih Birol spoke at the G7 meeting of finance ministers in Paris. He said reserves would last several weeks but warned that the decline could raise food prices and push inflation higher.

March the IEA ordered the release of 400 million barrels from emergency reserves. 5 million barrels per day to global supply, but Birol noted the reserves are not unlimited.

U.S. proposal and that diplomatic exchanges were continuing through a Pakistani mediator. Foreign ministry spokesman Esmaeil Baqaei said Iranian demands include the release of frozen assets and the lifting of sanctions. U.S. and Israel launched operations against Iran. The two sides have held only one round of talks despite a fragile ceasefire.

8 percent projected last month. The IMF said the Iran war continues to weigh on the outlook and will keep borrowing costs elevated. Chancellor Rachel Reeves said the upgraded forecast shows the government has the right economic plan. She said stability must be maintained as the country deals with the costs of the conflict.