IEA Announces Record Release of 400 Million Barrels of Oil to Stabilize Markets Amid Iran War
The International Energy Agency (IEA) has announced plans to release a record 400 million barrels of crude oil from strategic reserves held by its member countries in an effort to stabilize global energy markets amid the ongoing conflict in the Middle East.
The decision marks the largest coordinated emergency oil release in the organization’s history, reflecting growing concerns that the war involving Iran, Israel and the United States could trigger severe disruptions to global oil supply.
Speaking to reporters, IEA Executive Director Fatih Birol said the decision was unanimously approved by member countries of the Paris-based energy organization.
“IEA countries have unanimously decided to launch the largest-ever release of emergency oil stocks in our agency’s history. IEA countries will be making 400 million barrels of oil available,” Birol announced.
According to him, the move is intended to reduce volatility in global energy markets and mitigate the immediate economic impact caused by disruptions to oil transportation routes.
“This is a major action aiming to alleviate the immediate impacts of the disruption in markets,” he said.
However, Birol emphasized that restoring stability in the global energy system ultimately depends on reopening one of the world’s most important oil transit routes — the Strait of Hormuz.
“The most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz,” he added.
The strategic waterway, located between Iran and the Gulf states, normally carries about 20 percent of the world’s oil and gas supplies. The current conflict has significantly disrupted shipments through the route, causing sharp fluctuations in global crude prices.
The IEA’s decision surpasses the previous large-scale release in 2022, when the agency coordinated the release of 182 million barrels of oil following the invasion of Ukraine by Vladimir Putin of Russia.
The emergency oil stocks will be released gradually, with each of the agency’s 32 member countries deciding how quickly to deploy their reserves depending on national circumstances.
In addition to the IEA action, several major economies have already announced independent plans to tap their own strategic reserves.
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The government of Japan confirmed it would release oil from its reserves as early as the following week. Japanese Prime Minister Sanae Takaichi said the measure was necessary to protect the country’s economy from rising energy prices.
Similarly, officials in Germany announced they would release around 2.4 million tonnes of crude oil from their national reserves. German Economy and Energy Minister Katherina Reiche stated that the release would help cushion the immediate impact on European markets.
The announcement also came as leaders of the Group of Seven (G7) major economies held a virtual meeting to discuss the economic consequences of the war. The meeting was chaired by French President Emmanuel Macron.
Macron called for urgent coordination among global powers to reopen the Strait of Hormuz and restore normal oil shipments as quickly as possible.
He also stressed that the current energy crisis should not lead to a relaxation of sanctions imposed on Russia following the invasion of Ukraine.
“The consensus was that we should not change our position on Russia and should maintain our efforts on Ukraine,” Macron said.
Energy analysts say the 400 million barrel release could temporarily calm oil markets but may not fully offset supply disruptions if the conflict continues for a long period.
According to market experts, the Middle East has already reduced oil production by roughly six percent as a result of the war. This reduction, combined with transportation disruptions through the Strait of Hormuz, has triggered sharp price spikes across global energy markets.
Analyst Ipek Ozkardeskaya of Swissquote Bank said the scale of global oil consumption means the release may only provide short-term relief.
“IEA countries consume roughly 45 million barrels of oil every day,” she noted. “Four hundred million barrels would therefore be only a temporary fix.”
The impact of the supply disruption is already being felt across several countries.
Governments around the world have begun implementing emergency measures to control energy prices and prevent shortages. In Bangladesh, the military has been deployed to guard oil depots. India has tightened controls over natural gas and cooking gas distribution, while authorities in France have inspected petrol stations to prevent price manipulation.
Meanwhile, Greece announced temporary limits on profit margins for fuel and certain food products to protect consumers from inflation caused by rising energy costs.
Despite these interventions, experts warn that the long-term stability of global oil markets will depend largely on how quickly the conflict in the Middle East is resolved and whether oil shipments through the Strait of Hormuz can resume safely.
For now, the unprecedented release of strategic reserves reflects growing international concern that the war could escalate into a broader energy crisis affecting economies around the world.