IEA to Release 400 Million Barrels of Oil to Tackle Iran War Supply Shock

The International Energy Agency (IEA) has announced the largest release of emergency oil reserves in its history as global crude prices surge due to the escalating war involving Iran and disruptions to shipping routes in the Middle East.

The Paris-based energy watchdog said its 32 member countries will collectively release about 400 million barrels of oil from strategic reserves in an effort to stabilize global energy markets and ease supply shortages.

The unprecedented move comes after the conflict between Iran, the United States, and Israel disrupted oil flows through the Strait of Hormuz, a critical maritime passage that normally carries roughly 20 percent of the world’s oil supply.

IEA officials said the coordinated release is intended to calm markets and offset the sharp supply losses triggered by attacks on vessels and heightened security risks in the Gulf region. The release is more than double the 182 million barrels released in 2022 following Russia’s invasion of Ukraine, making it the agency’s largest emergency intervention since its creation in the 1970s.

Several countries have already begun tapping their reserves. Japan announced plans to release around 80 million barrels, while Germany and the United Kingdom are also expected to contribute significant volumes as part of the coordinated effort.

Despite the massive intervention, analysts say oil markets remain volatile as the ongoing conflict continues to threaten shipping lanes and energy infrastructure across the region. Oil prices have surged sharply since the outbreak of the war, raising fears of a prolonged global energy shock.