IEA countries agree to largest-every oil reserve release amid Iran war supply shock

The International Energy Agency has agreed to release 400 million barrels of oil from strategic reserves, marking the largest coordinated release in its history, according to an announcement on Wednesday. The move comes as the war involving Iran disrupts global energy supplies and drives oil prices higher.

The IEA said its 32 member countries unanimously approved making the emergency reserves available to the market. The agency said the oil will be released over a timeframe that is appropriate to the circumstances of each member country.

The IEA has not yet released details about when countries will start releasing oil or how much they will be able to release into the market at a time. 

The planned release far exceeds the previous largest coordinated action by the agency, when member states released 182.7 million barrels following the global energy shock triggered by Russia’s full-scale invasion of Ukraine in 2022.

Oil markets have been under pressure since the outbreak of the Iran war, with Tehran effectively blocking traffic through the Strait of Hormuz. The waterway handles about one-fifth of global oil exports and is considered one of the world’s most critical energy transit routes.

At the same time, oil production has been severely reduced in several key Gulf producers, including the United Arab Emirates, Kuwait, and Qatar. Some facilities in the region have also been damaged in Iranian missile and drone strikes, further tightening supply.

The Paris-based International Energy Agency was founded in 1974 to coordinate energy security among major economies. Its members include all G7 countries, including the United States and the United Kingdom, as well as 21 European Union nations. The record release aims to stabilize markets and ease supply shortages as the conflict continues to affect global energy flows.