The International Energy Agency (IEA) has agreed to release a record 400 million barrels of oil from strategic stockpiles in an attempt to stabilize global energy markets shaken by the U.S.-Israeli war with Iran.
The coordinated action, backed by all 32 IEA member countries, marks the largest emergency release of reserves in the agency’s history. The move aims to counter rising crude prices and supply disruptions linked to the conflict, which has affected energy shipments passing through the Strait of Hormuz.
United States and Japan Lead Contributions
The United States will provide the largest share of the release, contributing 172 million barrels, according to U.S. Energy Secretary Chris Wright.
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“President Trump promised to protect America’s energy security by managing the Strategic Petroleum Reserve responsibly and this action demonstrates his commitment,” Wright said in a statement.
Japan also pledged swift action, with Prime Minister Sanae Takaichi announcing plans to release around 80 million barrels from national and private reserves. Tokyo said it would begin releasing supplies as early as March 16 to help ease global supply and demand pressures.
Germany confirmed it would also contribute, with Economy Minister Katherina Reiche stating the country will release approximately 19.5 million barrels from its reserves as part of the coordinated effort.
Oil Prices Continue to Rise
Despite the announcement, oil prices climbed nearly 5% on Wednesday as markets remained concerned about prolonged disruptions. Analysts said the reserve release may not fully offset the scale of supply losses linked to the conflict.
The IEA estimates the disruptions have affected roughly one-fifth of global oil and gas supply flows along the Strait of Hormuz since the war began on February 28.
Market experts noted that even a release of this scale would cover only about 20 days of the lost supply and could take weeks or months to reach global markets.
Coordinated Energy Security Effort
The release is the sixth coordinated stockpile action since the IEA was established in 1974 following the global oil crisis. The agency’s member states collectively hold more than 1.2 billion barrels in emergency reserves, alongside roughly 600 million barrels held by industry under government obligations.
