• The IEA will release around 400 million barrels of oil from strategic reserves.

• The move follows supply disruptions linked to the war involving the United States, Israel, and Iran.

• Despite its scale, the release represents only about four days of global oil production.

The International Energy Agency (IEA) announced on March 11 it will release about 400 million barrels of oil from the strategic reserves of its member countries. The decision is an effort to stabilize markets as tensions disrupt global oil supply following the war involving the United States, Israel, and Iran.

Approved unanimously by the organization’s 32 member states, the measure represents the largest coordinated release of reserves ever organized by the IEA. It far exceeds the intervention carried out in 2022 after Russia’s invasion of Ukraine, when 182 million barrels were injected into the market.

The volumes will come from both public reserves and stocks held by industry under government obligations. In total, IEA members hold around 1.2 billion barrels in public reserves, in addition to about 600 million barrels stored by industry.

Several countries have already announced their contributions. The United Kingdom plans to release 13.5 million barrels from its emergency reserves. Japan, where about 70% of oil imports pass through the Strait of Hormuz, said it will place 80 million barrels on the market starting March 18. South Korea plans to release 22.46 million barrels, while Germany will contribute around 19.5 million barrels.

The decision comes as the war that broke out in late February between the United States, Israel, and Iran has severely disrupted energy flows in the Middle East. Iranian threats against vessels transiting the Strait of Hormuz—a strategic passage through which about one-fifth of global oil and gas flows—have reduced maritime activity and removed nearly 15 million barrels per day from the market, according to the IEA.

The tension quickly spread to oil markets. Brent crude climbed above $119 per barrel early in the week, its highest level since 2022, before falling back to around $90 after the reserve release was announced.

Despite its scale, the intervention may have limited impact. The 400 million barrels represent about four days of global oil production and roughly 16 days of the volumes typically transported through the Gulf, according to analysts’ estimates.

In this context, future price movements will depend largely on how long disruptions in the Strait of Hormuz persist and on the ability of international actors to secure this critical maritime route for global energy supply.

Olivier de Souza