The International Energy Agency (IEA) on Wednesday announced a coordinated release of 400 million barrels of oil from global strategic reserves to help stabilise markets after supply disruptions linked to the U.S.-Israeli conflict with Iran.
The decision, backed by all 32 member countries, marks the largest emergency stockpile release since the agency was established in the 1970s to manage global energy crises.
The move follows escalating tensions in the Middle East that have disrupted roughly one-fifth of global oil and gas supplies moving through the Strait of Hormuz since the conflict began on February 28.
The United States will contribute the largest share of the release, supplying 172 million barrels from its Strategic Petroleum Reserve, according to U.S. Energy Secretary Chris Wright.
Officials said the coordinated action aims to ease surging global crude prices and stabilise markets amid growing fears of prolonged supply disruptions.
IEA Executive Director Fatih Birol described the situation as an unprecedented challenge for the oil market, prompting what he called an emergency collective response of historic scale.
Despite the announcement, oil prices rose nearly 5% on Wednesday as continued attacks on commercial vessels in the Strait of Hormuz heightened concerns about supply security.
Market analysts warned that the emergency release may only provide temporary relief, noting that the 400 million barrels would cover roughly 20 days of the supply lost due to disruptions.
Energy analysts also said it could take several weeks or months for the released reserves to reach global markets, limiting the immediate impact on prices.
The last major coordinated release of strategic oil reserves by the IEA occurred in 2022 following Russia’s full-scale invasion of Ukraine, highlighting how geopolitical conflicts continue to shape global energy supply.