IEA Announces Up to 400M-Barrel Release to Avert Oil Spike Amid Middle East War

The International Energy Agency (IEA) has agreed to a coordinated release of up to 400 million barrels from member emergency stockpiles, a move described by multiple outlets as the largest coordinated strategic release in the agency’s history.

“IEA proposes record oil stockpile release amid Middle East conflict: Report Plan for 300M–400M barrel release from emergency reserves could mark largest coordinated stockpile draw in history as governments seek to calm volatile oil markets amid Mideast conflict, says Bloomberg ISTANBUL The International Energy Agency (IEA) has proposed releasing a record amount of oil from emergency reserves as governments scramble to contain soaring energy prices triggered by the escalating conflict in the Middle East, Bloomberg reported Wednesday”

Anadolu Agency

Reuters and other reports cited by FXStreet and Daijiworld say the 32 IEA members “unanimously agreed to make 400 million barrels of Oil from their emergency reserves” and that the plan would mark the biggest emergency intervention the IEA has ever proposed or implemented.

Anadolu Agency

Anadolu Agency and Türkiye Today reported that the proposal circulated among energy officials called for a release in the 300–400 million barrel range and would, if approved, be the largest IEA emergency oil release on record.

The decision was driven by acute supply disruptions from the Middle East war, notably the near-halt of tanker traffic through the Strait of Hormuz and direct attacks in the region that pushed oil prices sharply higher.

Rigzone and NBC News described how flows through Hormuz have been effectively closed, with NBC noting the strait “has been essentially shut to tanker traffic” and that “More than 20 million barrels of oil typically transit the strait every day.”

Daijiworld

Multiple outlets said the resulting market shock had pushed international benchmarks sharply up, with Rigzone reporting oil had “soared to almost $120 a barrel” before easing.

IEA and member governments have not disclosed every operational detail, and officials emphasised uncertainty over timing, the crude-versus-products split and the rate at which barrels will hit markets.

“Daijiworld Media Network - Paris Paris, Mar 11: The International Energy Agency has agreed to make 400 million barrels of oil from emergency reserves available to the market as tensions in the Middle East raise concerns over possible supply disruptions”

Daijiworld

Rigzone reported Fatih Birol saying the action was “of unprecedented size” but that the agency did not “specif[y] the pace, duration and location of the planned releases,” while FXStreet noted the release “would take place over a timeframe adapted to the national circumstances of each member country.”

Analysts and traders quoted in Rigzone warned the pace of deliveries and the crude/products breakdown would determine how effective the intervention is.

Several member governments signalled specific contributions and rapid organization of the discharges, but numbers and timing vary by country.

Rigzone listed national commitments such as Japan’s plan to release “about 80 million barrels,” the UK’s “13.5 million barrels,” Germany’s “about 19.5 million,” France “as much as 14.5 million,” and South Korea’s plan for “22.5 million barrels,” and noted French President Emmanuel Macron said discharges “will be organized in the coming days.”

Firstpost

Firstpost and Türkiye Today reported that G7 discussions and government consultations were underway as officials weighed the scale and speed of the coordinated action.

Analysts cautioned that stockpile releases can help calm market volatility but are not a permanent fix to a major supply shock, given physical limits and prior precedents.

“Oil prices slipped on Wednesday after reports indicated that the International Energy Agency (IEA) is considering what could become the largest coordinated release of strategic oil reserves in history to stabilise markets shaken by escalating tensions in the Middle East”

Firstpost

Rigzone detailed technical limits including the U.S. Strategic Petroleum Reserve at about “415 million barrels” and its maximum drawdown of “4.4 million barrels a day” with SPR oil taking “13 days for SPR oil to reach the open market,” while Firstpost and Daijiworld noted the scale being discussed would exceed previous IEA interventions such as the 2011 and 2022 releases.

NBC News

Market commentators warned that unless transit via the Strait of Hormuz resumes, the underlying disruption could keep prices elevated despite the coordinated release.