IEA Unleashes 400 Million Barrel Oil Reserve to Steady Prices Amid Iran War
IEA Unleashes 400 Million Barrel Oil Reserve to Steady Prices Amid Iran War
The IEA will release more than 400 million barrels from emergency reserves to counter a price surge tied to the Iran conflict, with immediate and near-term releases planned.
Over 400 million barrels from the International Energy Agency's emergency reserves are set to be released to counter a sharp rise in crude prices sparked by the Iran conflict. The plan calls for immediate releases from Asia and Oceania, while Europe and the Americas will follow by the end of March. The breakdown shows 271.7 million barrels drawn from government reserves, 116.6 million from obligated industry stocks, and 23.6 million from other sources. The Americas will contribute the largest share at 195.8 million barrels, with 172.2 million from government-held stocks. Asia-Oceania pledges total 108.6 million barrels, including 66.8 million from government stocks, while Europe will add 107.5 million, of which 32.7 million are from state reserves. About 72 percent of the planned release will be crude oil, with the remaining 28 percent oil products.
Faced with disruptions that have affected roughly a fifth of global oil and gas supply via the Strait of Hormuz since the conflict began on February 28, the IEA's move is designed to stabilize markets and reassure consumers. Iran has warned that prices could soar to $200 a barrel as it continues to target merchant ships in the strait.
IEA members hold emergency stockpiles exceeding 1.2 billion barrels, supplemented by around 600 million barrels in industry stocks held under government obligation. This marks the sixth coordinated release since the agency's inception in 1974, underscoring the international effort to cushion shocks from geopolitical turmoil.
Markets have reacted with caution, as energy analysts weigh the impact of the releases against ongoing supply disruptions. The staged approach—immediate sales in some regions followed by later releases—reflects the need to balance supply with demand and to avoid renewed volatility in global energy prices.
Officials say the releases are temporary and aimed at preserving affordability and stability while diplomatic and military developments unfold.
