IEA announces record release of 400 million barrels from emergency oil reserves

The International Energy Agency has agreed to release 400 million barrels of oil from emergency stockpiles, marking the largest coordinated release in its history as governments attempt to stabilise energy markets disrupted by the ongoing Middle East war.

IEA Executive Director Fatih Birol said the decision was taken unanimously by member countries as oil markets face unprecedented pressure.

“The oil market challenges we are facing are unprecedented in scale,” Birol said in a statement, adding that IEA members had responded with an emergency collective action of unprecedented size.

The agency did not provide details on the timeline or pace of the release.

Oil prices surged to nearly $120 a barrel in London earlier this week as shipments through the Strait of Hormuz, one of the world’s most critical oil transit routes in the Persian Gulf, were effectively halted. Prices have since eased partly on expectations that governments would release reserves to increase supply.

The IEA coordinates emergency stockpile releases among member nations of the Organisation for Economic Co-operation and Development. According to the agency, its 32 members hold more than 1.2 billion barrels of oil in public emergency reserves.

The largest portion of those reserves is held in the US Strategic Petroleum Reserve. In addition, governments require industry participants to maintain around 600 million barrels in commercial stocks that can be used during supply disruptions.

The coordinated release is aimed at easing supply shortages and preventing further spikes in global energy prices as tensions in West Asia continue to disrupt oil flows.