The International Energy Agency (IEA) agreed on Wednesday to release 400 million barrels of oil from member countries’ strategic reserves to stabilize global energy markets as the United States-Israeli war with Iran disrupts supply routes and drives prices higher, EuroNews reported.
The planned release exceeds the 182 million barrels that IEA members injected into the market after Russia launched its full-scale invasion of Ukraine in 2022.
“The oil market challenges we are facing are unprecedented in scale; therefore, I am very glad that IEA Member countries have responded with an emergency collective action of unprecedented size,” IEA Executive Director Fatih Birol said in a statement.
Birol said the conflict has already strained supply chains across the region. “Without sufficient routes to market and with no more available storage, Middle East oil producers have started to reduce production,” he said. “And we have seen further attacks and damage to energy and energy-related infrastructure. Refinery operations have also been disrupted, with major implications for jet fuel and diesel supplies in particular.”
IEA member states hold more than 1.2 billion barrels of emergency oil stocks, while governments require industry to maintain an additional 600 million barrels.
The decision follows supply chain disruptions after Iran moved to block the essential Strait of Hormuz passage following the launch of the US-Israeli military campaign against Iran, which began on February 28. The narrow waterway handles roughly one-fifth of the world’s oil shipments, making it one of the most critical routes for global energy supply.
Iran has also targeted oil fields and refineries in Gulf Arab states, actions analysts say aim to inflict enough economic pressure on global markets to push Washington and its allies to halt the war.
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