‘We are making money from rising oil prices’, Trump’s shocking statement amid global oil crisis

IEA emergency reserves Release: Due to the ongoing military tension in the Middle East, there has been a huge rise in the prices of crude oil in the global market. Meanwhile, US President Donald Trump made a shocking statement saying that America is ‘making a lot of money’ due to rising oil prices.

Trump clarified on Truth Social that since America is the world’s largest oil producer, the increase in market prices is beneficial for the American economy. However, he stressed that the biggest priority for him was not oil prices but ‘dangerous power’ Iran has to be prevented from acquiring nuclear weapons because it is a threat to the entire world.

Fear of the biggest supply interruption in history

The International Energy Agency (IEA) has warned that due to Iran’s increasing attacks, the world may face the biggest interruption in oil supply in history. The seriousness of the current situation can be gauged from the fact that the export of crude oil and refined products through the Strait of Hormuz is now less than 10 percent of the pre-war level. The conflict, which began on February 28, has almost paralyzed maritime trade routes.

IEA’s ‘emergency’ action

To overcome this huge disruption in the market, 32 member countries of the IEA have agreed in a special meeting to release 400 million barrels of oil from their emergency reserves. This strategic decision was taken in this meeting called by Fatih Birol, Executive Director of IEA. This is the sixth time in the history of the IEA that such a coordinated action has been taken. Earlier, emergency reserves were also used in 1991, 2005, 2011 and 2022. India has also welcomed this international step.

Also read:- Painful impact of the Great War! 32 lakh people were forced to leave their homes in Iran, families including children are wandering from door to door

Storage conditions and future relief

The IEA has a total of 1.2 billion barrels of emergency oil reserves while industries have additional stocks of 600 million barrels. While talking about gas prices in Ohio, Trump assured that the prices will be so low that ‘nobody will be able to understand’. At present, this 400 million barrels of oil will be released into the market within a fixed time-frame according to the national conditions of different member countries so that the prices can be stabilized.