IEA Proposes Biggest-Ever Strategic Oil Release; Some Reports Say Members Already Agreed

The International Energy Agency (IEA) has proposed an unprecedented coordinated release of strategic oil reserves to calm markets shaken by the U.S.-Israel war with Iran, with several reports saying members moved to unlock the largest amount in the agency’s history.

The News International reported that “The International Energy Agency has proposed the largest release of oil reserves in its history to bring down crude prices that have soared due to the U.S.-Israel war with Iran,” while Radio France Internationale quoted IEA Executive Director Fatih Birol saying, “IEA countries will be making 400 million barrels of oil available.”

Business Today

Gulftoday captured Spain’s energy minister saying, “I would say it is the largest proposal in the history of the International Energy Agency,” and TradeWinds also described the release as “the largest such release to date.”

The release was driven by acute supply disruptions in the Gulf, including attacks on tankers and an effective shutdown of the Strait of Hormuz that carries roughly one-fifth of global oil and gas, prompting volatile oil prices and urgent coordination.

Business Today said 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,” while Radio France Internationale reported the strait “normally carries about 20 percent of the world's oil and gas supplies.”

Deccan Chronicle

The News International linked the move to prices that “have soared due to the U.S.-Israel war with Iran,” and EconoTimes warned the measure responds to a “continuous blockade of the Strait of Hormuz and targeted assaults on important Gulf refineries and liquefied natural gas (LNG) infrastructure.”

Reported proposals and official figures differ slightly across accounts: several outlets said members were voting on a release of between 300–400 million barrels, while the IEA was also cited as having large overall emergency stocks that could underpin the move.

“As geopolitical tensions rise with the Iran war, crude oil prices have dipped following a report of the IEA's plan for a significant release of oil reserves”

Deccan Chronicle

EconoTimes reported members voting “on a plan to inject between 300 million and 400 million barrels of crude into the global market,” Radio France Internationale quoted Birol on the 400 million-barrel figure, and Business Today noted that “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.”

NBC News likewise wrote that “The IEA said that collectively, member countries hold emergency stockpiles of more than 1.2 billion barrels.”

The decision process and timing involve unanimity mechanics and national steps, and several countries acted ahead of a formal coordinated release while G7 ministers backed using reserves.

Business Today observed that “The plan will proceed only if no member objects,” and The News International noted “The IEA is convening an extraordinary meeting of its member states on Tuesday, and countries are expected to decide on the proposal on Wednesday.”

International Business Times Singapore

Gulftoday reported that “Acting ahead of the IEA move, G7 member Japan announced plans to release 15 days’ worth of private-sector oil reserves and one month’s worth of state oil reserves,” and Radio France Internationale said the IEA “would publish its recommendation at 1300 GMT on Wednesday, ahead of a 1400 GMT meeting of G7 leaders.”

Markets reacted with skepticism about how much relief a release could provide without reopening the Hormuz passage and about logistical limits to deliveries, prompting warnings that the move may offer short-term calm but not fix a structural supply deficit.

“**IEA proposes 400 million barrels of oil release to stabilise prices** The International Energy Agency (IEA) is to recommend the release of 400 million barrels of oil, the largest such move in IEA history, to try to restrain soaring crude prices amid the US-Israeli war with Iran”

gulftoday

EconoTimes cautioned that “without a solution to the maritime blockade, even this unprecedented release might only provide temporary stability,” NBC News noted that emergency releases “would likely provide only initial relief” and historically “have peaked around 1.4 million barrels per day,” and gulftoday described markets doubting whether the record-release plan “could offset potential supply shocks from the U.S.-Israeli conflict with Iran” as Brent and WTI prices swung.

NBC News

Business Today added that “Economists warn that sustained high oil prices could fuel inflation and unsettle financial markets,” underscoring the limited and temporary nature of stockpile releases as a tool unless transit is restored.