The International Energy Agency is closely monitoring developments in the Strait of Hormuz and is ready to act to ensure global markets remain adequately supplied.

The International Energy Agency (IEA) has revealed that it is closely monitoring developments in the Strait of Hormuz and is “ready to act” to ensure global markets remain adequately supplied.

In a statement posted on its website on Monday, the IEA said its emergency oil supplies are large enough to cover any disruptions from the Strait of Hormuz “for an extended period” but highlighted that consumers can be “reassured” that the oil market is currently well stocked.

About 20 million barrels of oil, or around 20 percent of global supply, transit each day through the Strait, the IEA confirmed. IEA countries hold 1.55 billion barrels of public emergency oil stocks, according to the organization, which added that an additional 650 million barrels are held by industry under government obligations.

An IEA oil market report released in July revealed that oil supply exceeded demand by 0.9 million barrels per day in the first half of 2019. The IEA’s forecast for oil demand growth in 2019 is currently 1.2MMbpd.

Last month, the IEA cut its 2019 oil demand growth forecast from 1.3MMbpd to 1.2MMbpd. That was the IEA’s second consecutive oil demand growth forecast cut, following a decrease from 1.4MMbpd to 1.3MMbpd in May.

On July 19, Iranian authorities seized the Stena Impero vessel in Omani waters, according to the UK government. Speaking to media after a ministerial COBR meeting on July 20, UK Foreign Secretary Jeremy Hunt said the seizure of the vessel was “totally and utterly unacceptable” and added that the development raises “very serious” questions about the security of British and international shipping in the Straits of Hormuz.

Founded in 1974, the IEA was initially designed to help countries co-ordinate a collective response to major disruptions in the supply of oil. The organization is headed by Fatih Birol, who has served as IEA executive director since September 2015.