The International Energy Agency (IEA) has approved the release of 400 million barrels of oil from global reserves, the largest coordinated drawdown in its history, to contain surging crude prices amid Middle East tensions.
The decision, unanimously backed by all 32 IEA member countries, aims to stabilize global energy markets after supply disruptions linked to the conflict involving the United States, Israel, and Iran.
The agency said that the move is intended to mitigate the impact of disruptions affecting a significant portion of global oil and gas shipments passing through the critical Strait of Hormuz.
The United States will contribute the largest share of the coordinated release, providing 172 million barrels from its Strategic Petroleum Reserve, according to US Energy Secretary Chris Wright.
Wright said the move reflects the US administration’s commitment to safeguarding energy security while managing national reserves responsibly.
Despite the announcement, oil prices climbed nearly 5 percent on Wednesday as renewed attacks on merchant vessels in the Strait of Hormuz heightened concerns about sustained supply disruptions.
Analysts noted that the planned release could offset only about 20 days of supply losses linked to disruptions in the strategic maritime corridor, through which roughly one-fifth of global oil and gas supplies transit.
Energy market analysts also cautioned that the reserves will take weeks or months to reach global markets, limiting their immediate impact on prices.
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IEA Executive Director Fatih Birol described the situation as one of the most challenging periods for global oil markets in recent decades.
Birol stated that, “The oil market challenges we are facing are unprecedented in scale.” He added that the coordinated response by member countries represents the largest emergency collective action undertaken by the agency.
The move marks the sixth coordinated stockpile release since the IEA’s creation in 1974, when it was established in response to the global oil crisis.
The previous major coordinated release occurred in 2022 following Russia’s invasion of Ukraine, when member states released about 182.7 million barrels of oil and petroleum products.
Several major economies have also signaled their support for efforts to stabilize energy markets. Japan announced plans to release around 80 million barrels from its national and private reserves, while India said it stands ready to take appropriate steps to support market stability in coordination with the IEA.
IEA members collectively maintain over 1.2 billion barrels of emergency reserves, supplemented by roughly 600 million barrels of industry stocks held under government obligations.
