IRIA News

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The International Energy Agency (IEA) has agreed to release 400 million barrels of oil from strategic reserves in an effort to stabilize global energy markets as the war involving the United States, Israel, and Iran continues to disrupt supply routes.

The decision marks the largest emergency oil release in the organization’s history and reflects growing concerns about the impact of the conflict on global energy security.

The announcement comes as oil markets face severe uncertainty after the Strait of Hormuz, one of the world’s most important energy shipping routes, effectively shut down due to the ongoing conflict. Roughly one-fifth of global oil and gas normally passes through the narrow waterway connecting the Persian Gulf with the Gulf of Oman.

IEA Executive Director Fatih Birol said the scale of the disruption forced member countries to take unprecedented action to stabilize the market.

“The conflict in the Middle East is having significant impacts on global oil and gas markets, with major implications for energy security, energy affordability, and the global economy for oil,” Birol said.

“I can now announce that IEA countries have unanimously decided to launch the largest-ever release of emergency oil stocks in our agency’s history,” he added.

Historic Emergency Release

The planned release of 400 million barrels is significantly larger than previous coordinated interventions. In 2022, IEA members released 182 million barrels after Russia’s invasion of Ukraine triggered energy market turmoil.

IEA member states collectively hold more than 1.2 billion barrels of government-controlled emergency reserves, along with an additional 600 million barrels of industry stocks held under government obligations. These reserves were created to protect global energy supplies during major disruptions.

The agency said the oil will be released gradually, with each of the 32 member countries determining the timeline based on their own national circumstances. Members are primarily advanced economies across Europe, North America, and Northeast Asia.

The organization was established in 1974 after the Arab oil embargo triggered a global energy crisis, and its central mission is to maintain stability in global energy markets.

Several countries have already announced their contributions. The United Kingdom said it would release 13.5 million barrels, while South Korea confirmed it would contribute 22.46 million barrels from its reserves. Germany and Austria also indicated they would release portions of their stockpiles.

Thank you to Prime Minister Takaichi of Japan for her and the Japanese government’s support for the largest ever emergency oil stock release by @IEA Member countries to address the disruptions in the market https://t.co/B2lJ40VCDt

— Fatih Birol (@fbirol) March 11, 2026

Japan said it plans to begin releasing oil from its national reserves as early as next week, citing what Prime Minister Sanae Takaichi described as the country’s “exceptionally high level of dependence” on Middle Eastern energy supplies.

Strait of Hormuz Disruption

The emergency measures come as tanker traffic through the Strait of Hormuz has largely halted due to security risks. Shipping companies have been reluctant to send vessels through the corridor after Iran threatened attacks on ships and reports emerged that mines had been deployed in the channel.

The closure has triggered what analysts describe as the largest oil supply disruption in modern history. Consulting firms Rapidan Energy Group and Wood Mackenzie estimate that nearly 20 million barrels of oil per day normally pass through the strait. Analysts warn that even the massive IEA release may not fully offset the disruption if shipping does not resume.

Birol emphasized that restoring maritime traffic is essential for stabilizing the global energy system. “Tanker traffic must resume through the Strait of Hormuz to bring stable oil and gas flows back to the global market,” he said.

Iranian forces have also targeted energy infrastructure across the Gulf region during the conflict. According to the IEA, attacks have damaged energy facilities and disrupted refinery operations, raising concerns about supplies of diesel and jet fuel.

The conflict has also reduced global liquefied natural gas supply by around 20%, forcing Asian and European buyers to compete for limited cargo shipments.

Oil Price Volatility

Oil prices have experienced extreme volatility since the conflict began on February 28, when U.S. and Israeli forces launched major strikes on Iranian targets.

Global benchmark Brent crude surged to nearly $120 per barrel earlier in the week before falling back to around $90 after the IEA’s announcement. Even so, prices remain far higher than before the conflict began.

Analysts say the planned release will help ease some pressure but may not be enough to fully calm the markets.

Macquarie analysts estimated the 400 million barrel release is roughly equal to four days of global oil production and about 16 days of the crude that typically passes through the Strait of Hormuz. “If that doesn’t sound like much, it isn’t,” the analysts said in a note.

Energy markets have also been shaken by ongoing attacks on shipping in Gulf waters. Three vessels were reported to have been hit by projectiles on Wednesday, bringing the total number of merchant ships damaged since the war began to 14.

One Thai-flagged bulk carrier caught fire after an attack, forcing the crew to abandon the ship, with three crew members reported missing.

War Continues to Escalate

Despite the energy crisis, the military conflict itself shows little sign of slowing. Iran has continued missile and drone attacks against targets across the Middle East, while U.S. and Israeli forces have carried out extensive airstrikes against Iranian military infrastructure.

U.S. President Donald Trump suggested the campaign could end quickly but indicated the United States would decide when to stop. “Any time I want it to end, it will end,” Trump said in a telephone interview.

However, Israeli officials signaled that operations could continue for an extended period. Defense Minister Israel Katz said the campaign would continue until Israel achieves its objectives.

The war has already killed around 2,000 people, mostly in Iran and Lebanon, according to reports, while airstrikes and missile attacks have spread across multiple countries in the region.

Iranian officials have warned that the economic shock from the conflict could worsen if the fighting continues.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilized,” said Ebrahim Zolfaqari, spokesperson for Iran’s military command.

As the war continues and global shipping routes remain threatened, energy markets are likely to remain volatile. Analysts say the success of the IEA’s record oil release will depend largely on whether shipping can safely resume through the Strait of Hormuz in the coming weeks.