Iran war: IEA proposes largest ever release of oil from strategic reserves
Iran war: The IEA secretariat plans to propose scenarios based on expected market impact, possibly involving outreach to non-IEA members such as China and India.
- Mar 11, 2026,
- Updated Mar 11, 2026 3:46 PM IST
The International Energy Agency (IEA) has proposed the largest release of oil from strategic reserves in its history. This recommendation comes amid rising crude prices caused by disruptions in oil flows through the Strait of Hormuz during the ongoing conflict involving the US, Israel, and Iran.
According to a report in Wall Street Journal, the proposal was circulated at an emergency meeting of the IEA’s 32 member countries on Tuesday. The plan will proceed only if no member objects. Spain’s Energy Minister Sara Aagesen noted that this release would be more than double the volume released at the start of the Ukraine war four years ago. Previously, the IEA released 182.7 million barrels in response to Russia’s 2022 invasion of Ukraine.
The plan aims to address the near-complete closure of the Strait of Hormuz, a key route for about one-fifth of the world’s daily oil supply. Attacks on tankers by Iran have severely reduced shipments, affecting global oil markets. IEA Executive Director Fatih Birol said members hold 1.2 billion barrels in public stocks and 600 million in mandatory commercial inventories, covering roughly 124 days of lost Gulf supply.
Oil prices have been volatile since the conflict escalated. After US-Israel struck Iran on February 28, crude prices surged up to 40 per cent, crossing $100 per barrel before falling below $84 by Tuesday. However, prices of refined fuels like diesel continue to rise. Economists warn that sustained high oil prices could fuel inflation and unsettle financial markets.
G7 energy ministers have expressed support for the IEA’s approach, backing proactive measures including the use of strategic reserves. A G7 source told Reuters that although no country currently faces a physical crude shortage, rising prices require action. Details of the release, including volume, country allocations, and timing, are still under discussion.
The IEA secretariat plans to propose scenarios based on expected market impact, possibly involving outreach to non-IEA members such as China and India. South Korea is also reviewing its position in the talks. Oil prices remain volatile as markets evaluate whether the IEA’s plan can offset potential supply shocks from Middle East tensions.
The International Energy Agency (IEA) has proposed the largest release of oil from strategic reserves in its history. This recommendation comes amid rising crude prices caused by disruptions in oil flows through the Strait of Hormuz during the ongoing conflict involving the US, Israel, and Iran.
According to a report in Wall Street Journal, the proposal was circulated at an emergency meeting of the IEA’s 32 member countries on Tuesday. The plan will proceed only if no member objects. Spain’s Energy Minister Sara Aagesen noted that this release would be more than double the volume released at the start of the Ukraine war four years ago. Previously, the IEA released 182.7 million barrels in response to Russia’s 2022 invasion of Ukraine.
The plan aims to address the near-complete closure of the Strait of Hormuz, a key route for about one-fifth of the world’s daily oil supply. Attacks on tankers by Iran have severely reduced shipments, affecting global oil markets. IEA Executive Director Fatih Birol said members hold 1.2 billion barrels in public stocks and 600 million in mandatory commercial inventories, covering roughly 124 days of lost Gulf supply.
Oil prices have been volatile since the conflict escalated. After US-Israel struck Iran on February 28, crude prices surged up to 40 per cent, crossing $100 per barrel before falling below $84 by Tuesday. However, prices of refined fuels like diesel continue to rise. Economists warn that sustained high oil prices could fuel inflation and unsettle financial markets.
G7 energy ministers have expressed support for the IEA’s approach, backing proactive measures including the use of strategic reserves. A G7 source told Reuters that although no country currently faces a physical crude shortage, rising prices require action. Details of the release, including volume, country allocations, and timing, are still under discussion.
The IEA secretariat plans to propose scenarios based on expected market impact, possibly involving outreach to non-IEA members such as China and India. South Korea is also reviewing its position in the talks. Oil prices remain volatile as markets evaluate whether the IEA’s plan can offset potential supply shocks from Middle East tensions.