Lula urges Brazil to establish a strategic oil reserve.

On March 20th local time, Brazilian President Lula, during a visit to a refinery in the state of Minas Gerais in Brazil, stated that with the current escalation of conflict in the Middle East, the Brazilian oil company and government "need to establish a strategic oil reserve" to address any consequences that may arise from the conflict. He warned that if the war continues, and if the United States were to destroy the Strait of Hormuz, the oil crisis "will only worsen." Previously, the Brazilian government announced on March 12th the exemption of import and sales tax on diesel, while imposing a 12% export tax on crude oil, in response to the spill-over risks from the situation in the Middle East.