The International Energy Agency (IEA) and its 32 member countries have agreed to release a record 400 million barrels of oil from strategic reserves to stabilize global energy markets as the ongoing conflict involving Iran continues to disrupt shipments through the Strait of Hormuz.
This emergency action represents the largest coordinated oil release in the agency’s history and only the sixth time strategic reserves have been used since the IEA was created after the oil crises of the 1970s.
The decision comes as tanker traffic through the Strait of Hormuz has slowed significantly due to rising military tensions in the Gulf, raising concerns about global oil supply.
The exact share of the 400 million barrels for each country has not yet been disclosed. The reserves will come from the IEA’s member nations, including the United States, Japan, South Korea, Canada, and several European countries. Major energy consumers such as China and India, which are association partners of the IEA, are closely monitoring the situation.
Oil markets have seen strong volatility since the conflict intensified. Prices rose from around $70 per barrel before the crisis to nearly $120 at the peak of supply concerns. By Wednesday, prices had eased to around $90 per barrel as diplomatic efforts to control the situation progressed.
The move follows several days of discussions among major economies. Earlier, finance ministers from the Group of Seven (G7) countries delayed a decision on using strategic reserves while assessing the scale of supply disruptions.
The United States holds the world’s largest government-controlled crude reserve through its Strategic Petroleum Reserve, which currently contains about 415 million barrels out of a total capacity of 715 million barrels.
The coordinated release aims to compensate for the millions of barrels of oil that normally pass through the Strait of Hormuz each day, helping to stabilize global energy supplies.
