The International Energy Agency has outlined plans to release more than 400 million barrels of oil from emergency stockpiles, one of the largest coordinated energy interventions in decades, as governments scramble to contain a surge in crude prices triggered by the war involving Iran.
In its most detailed explanation yet of the plan, the agency said on Sunday that oil from Asia and Oceania member states will be available immediately, while reserves from Europe and the Americas will begin entering the market toward the end of March.
The emergency drawdown comes four days after IEA members agreed to the unprecedented release in response to disruptions in energy flows through the critical Strait of Hormuz, a maritime chokepoint that normally handles about one-fifth of the world’s oil and liquefied natural gas shipments.
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Since the conflict began on February 28, shipping through the narrow passage between Iran and Oman has been repeatedly disrupted by attacks on merchant vessels, sending shockwaves through global energy markets.
According to the IEA, governments and industry participants have pledged a combined 411.9 million barrels of oil and petroleum products for release.
The supply will come from several sources:
- 271.7 million barrels from government strategic reserves
- 116.6 million barrels from industry stocks held under mandatory government obligations
- 23.6 million barrels from other supply sources
The agency said 72% of the planned releases will consist of crude oil, while 28% will be refined petroleum products such as gasoline and diesel. The largest share of the pledged reserves will come from countries in the Americas. IEA data shows 195.8 million barrels will come from member countries in the Americas, including 172.2 million barrels from government stockpiles.
Meanwhile, Asia and Oceania member states have committed 108.6 million barrels, with 66.8 million barrels drawn from government reserves, while European countries have pledged 107.5 million barrels, including 32.7 million barrels from official stockpiles.
The scale of the release underscores the severity of the current energy shock. The IEA was created in 1974 in response to the global oil crisis triggered by the Arab oil embargo, with the goal of coordinating energy security policies among major oil-consuming nations.
Since then, the agency has organized only six coordinated emergency stockpile releases, typically in response to major geopolitical disruptions or supply outages. Previous interventions occurred during events such as the 1991 Gulf War, Hurricane Katrina in 2005, the 2011 Libyan civil war, and the 2022 energy crisis triggered by Russia’s invasion of Ukraine.
The current release, therefore, ranks among the most significant emergency energy responses since the agency’s creation.
Energy markets have been shaken by fears that the Iran conflict could escalate into a broader regional confrontation that disrupts Gulf energy exports. The Strait of Hormuz is the main export route for several of the world’s largest oil producers, including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq.
If shipments through the corridor were halted entirely, global oil supply could fall by more than 20 million barrels per day, an unprecedented shock that analysts say could trigger a severe economic slowdown.
Iranian officials have warned that prices could surge dramatically if the confrontation continues. Tehran said last week that global markets should prepare for oil prices reaching $200 per barrel as Iranian forces continue targeting merchant vessels transiting the strait.
Stockpiles Act As A Global Safety Valve
IEA member countries collectively hold more than 1.2 billion barrels of emergency reserves, either in government-controlled strategic petroleum reserves or in mandated industry stocks. An additional 600 million barrels are stored by companies under government requirements, giving authorities significant firepower to counter supply shocks.
These reserves function as a stabilizing mechanism for global markets, allowing governments to inject supply quickly during crises. The goal is not only to offset lost barrels but also to restore market confidence and discourage panic buying or speculative price spikes.
While the release of more than 400 million barrels represents a massive supply injection, analysts say its effectiveness will depend heavily on how long the disruption in the Strait of Hormuz lasts. If attacks on shipping continue or if the waterway remains partially blocked, the emergency supply could only provide temporary relief before markets tighten again.
Energy traders are therefore closely watching military developments in the Gulf as well as diplomatic efforts aimed at de-escalating the conflict.