The International Energy Agency plans to tap strategic reserves to stabilise global oil markets amid rising geopolitical tensions.
The International Energy Agency (IEA) will begin releasing 400 million barrels of oil from emergency reserves, prioritising markets in Asia and Oceania, as global energy supplies reel from disruptions triggered by the escalating conflict in West Asia.
In a statement issued on March 15, the Paris-based energy watchdog said IEA member countries in Asia-Oceania will make stocks available immediately, while supplies from Europe and the Americas will start entering the market by the end of March.
The coordinated intervention—the largest emergency oil release in the agency’s history—comes after escalating tensions involving the United States, Israel, and Iran, which have severely disrupted energy flows in the Gulf region.
The crisis intensified after Iran moved to close the Strait of Hormuz, one of the world’s most critical oil transit routes that carries nearly 20 per cent of the global oil supply. The disruption has already pushed crude prices above $100 per barrel, sparking fears of a broader global energy shock.
IEA Executive Director Fatih Birol said the coordinated action is aimed at offsetting supply losses caused by the disruption of shipments through the strategic waterway.
“IEA countries will be making 400 million barrels of oil available to the market to offset the supply lost through the effective closure of the Strait of Hormuz,” Birol said in a video statement.
The release represents roughly one-third of the IEA’s government-controlled emergency reserves, which form part of a global strategic stockpile system designed to protect the world economy from sudden supply shocks.
The decision was unanimously approved by the IEA’s 32 member countries on March 11, following consultations with major oil producers and importers amid rapidly tightening global supply conditions.
According to the IEA’s March report, Gulf producers including Saudi Arabia, Iraq, the UAE, Kuwait, and Qatar have cut oil output by nearly 10 million barrels per day after attacks on energy infrastructure and shipping disruptions in the region.
India, which is an associate member of the IEA, is not required to release oil from its reserves but welcomed the move, saying it is closely monitoring developments in global energy markets and stands ready to take steps if necessary to support stability.
The agency also warned that the ongoing crisis could weigh on global energy demand, with higher prices and economic uncertainty expected to slow global oil consumption growth in 2026 to about 640,000 barrels per day, lower than earlier forecasts.
While the emergency release is expected to ease immediate supply pressures, the IEA stressed that lasting stability in oil markets depends on the reopening of the Strait of Hormuz, a key artery for global energy trade.
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