Several Countries Agree to Biggest-Ever Oil Release in History After Iran Warning

The International Energy Agency (IEA) and its member countries (32) have agreed to release a record 400 million barrels of oil from strategic reserves to calm global energy markets as the conflict involving Iran continues to disrupt shipments through the Strait of Hormuz.

The emergency measure marks the largest coordinated oil release in the agency’s history and only the sixth time such reserves have been deployed since the IEA was established after the oil crises of the 1970s.

The decision comes as tanker movements through the Strait of Hormuz have slowed significantly due to rising military tensions in the Gulf.

The distribution of the 400 million barrels among individual countries has not yet been disclosed. The reserves will come from the IEA’s 32 member states, including the United States, Japan, South Korea, Canada and several European economies. Major energy consumers such as China and India, which are association partners of the IEA, are closely watching market developments.

Oil Since Last Week

Oil markets have experienced sharp volatility since the conflict intensified. Prices climbed from around $70 per barrel before the crisis to nearly $120 at the peak of supply fears, before easing toward the $90 range on Wednesday as efforts to contain the conflict gained momentum.

The move follows several days of deliberations among major economies. Finance ministers from the Group of Seven (G7) countries had earlier postponed a decision on tapping strategic reserves while evaluating the scale of the supply disruption.

The United States holds the largest government-controlled crude stockpile through its Strategic Petroleum Reserve, which currently stores about 415 million barrels out of a total capacity of 715 million.

The coordinated release is intended to offset the loss of millions of barrels per day that normally pass through the Strait of Hormuz. Most X commentators see this as a move in vain.