Spain to release 11.5M barrels from strategic oil reserves

MADRID

The Spanish government on Tuesday approved the release of up to 11.5 million barrels of oil from its reserves in a bid to ease supply shortages.

Speaking to reporters following a weekly Cabinet meeting, Energy Minister Sara Aagesen said the move came in response to disruptions linked to the partial closure of the Strait of Hormuz amid continued escalation in the Middle East.

Aagesen noted that the government has approved the release of up to 11.5 million barrels from strategic reserves over the next 90 days.

The release will be carried out in phases, and the first shipments are expected to begin within 15 days.

Meanwhile, Economy Minister Carlos Cuerpo said that the Cabinet, which will convene on March 20, will issue decrees to "take some measures within normal limits" to mitigate the effects of the situation in the Middle East and Gulf countries on the Spanish economy.

The Strait of Hormuz has been at the center of global energy market concerns since Iran’s Islamic Revolutionary Guard Corps (IRGC) announced its closure to most vessels amid US-Israeli attacks on the country that began on Feb. 28.

Before the war, about 20 million barrels of oil passed through the strait daily. Its disruption has driven oil prices higher.

US-Israeli attacks on Iran have so far killed around 1,300 people, including Supreme Leader Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq and Gulf countries hosting US military assets.