The International Energy Agency has announced that its member countries will release 400 million barrels of oil from emergency reserves to reduce the impact of the ongoing Middle East conflict on global energy markets.
The decision represents the largest coordinated oil release in the organisation’s history.
Speaking to reporters, the agency’s Executive Director, Fatih Birol, said member countries unanimously agreed to make the oil available to help stabilise supply and calm volatile markets.
According to him, the measure is aimed at easing the immediate disruption in global oil supply triggered by the conflict involving Iran, the United States and Israel.
Birol, however, stressed that the most important step toward restoring stability would be the reopening of the Strait of Hormuz, a key global shipping route that normally carries about 20 percent of the world’s oil and gas supplies.
The latest release surpasses the 182 million barrels of oil that IEA member countries released in 2022 following Russia’s invasion of Ukraine.
The 32-member energy body said the emergency stockpiles would be released over a timeframe suitable to each member country’s national circumstances, with some nations also introducing additional measures to stabilise markets.
Global oil markets have experienced sharp volatility since the United States and Israel launched strikes on Iran late last month. Iran has retaliated with attacks across the Gulf region, effectively disrupting transit through the Strait of Hormuz.
The announcement came as leaders of the Group of Seven advanced economies held a video conference to discuss the economic impact of the war, now entering its second week.
French President Emmanuel Macron, who currently chairs the G7, urged world leaders to coordinate efforts to reopen the vital shipping route as soon as possible.
He also said the disruption should not be used as a reason to lift sanctions imposed on Russia over its invasion of Ukraine.
Macron added that the G7 would work with Gulf countries in the coming days to address the crisis and restore stable energy flows.
Meanwhile, Japan and Germany confirmed plans to release part of their strategic oil reserves to support global supply.
Japan’s Prime Minister Sanae Takaichi said the country could begin releasing reserves as early as Monday, while Germany’s Economy and Energy Minister Katherina Reiche said Germany would release about 2.4 million tons of oil, although no specific date was provided.
United States Interior Secretary Doug Burgum described the situation as a transit problem rather than a global energy shortage.
Energy analysts say the emergency release may only provide temporary relief because global demand remains extremely high.
A senior analyst at Swissquote Bank, Ipek Ozkardeskaya, noted that while the 400 million barrels is significant, it remains small compared with the roughly 45 million barrels consumed daily by IEA countries.
She added that oil production in the Middle East has already dropped by about six percent due to the conflict.
Countries around the world have begun taking emergency measures in response to rising oil prices.
Bangladesh has deployed soldiers to guard oil depots, India has tightened controls on natural and cooking gas supplies, and French authorities have inspected petrol stations and fined operators accused of inflating fuel prices.
In Greece, the government announced a temporary cap on profit margins for gasoline and certain food products for three months.
IEA member countries collectively hold more than 1.2 billion barrels of public emergency oil stocks, along with another 600 million barrels held by industry under government mandates.
