Canada Contributes to Record Global Oil Release Amid Strait of Hormuz Disruptions

Ottawa, March 14, 2026 – Canada is participating in the largest-ever coordinated global oil release in history, contributing 23.6 million barrels of oil to stabilize energy markets impacted by escalating tensions and disruptions in the Strait of Hormuz. The move, undertaken in conjunction with the 32 member countries of the International Energy Agency (IEA), aims to mitigate the economic consequences of restricted oil flow through the critical waterway.

Strait of Hormuz: A Critical Chokepoint

The Strait of Hormuz, a narrow passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, is one of the world’s most strategically important oil transit routes. In 2025, an average of 20 million barrels of crude oil and oil products were shipped through the strait daily [IEA]. Recent disruptions, stemming from conflict in the region, have effectively blocked around 250 million barrels of oil from leaving the Persian Gulf over the past 12 days [CBC].

Impact on Global Oil Markets

The blockage has triggered a surge in global oil prices, with Brent crude reaching US$119.50 a barrel over the weekend [National Post]. Beyond oil, the disruptions threaten the supply of critical metals like copper, nickel, and cobalt, as well as essential materials like fertilizer and helium used in semiconductor production [CBC].

Canada’s Role and Contribution

As the world’s fourth-largest oil supplier and the largest within the IEA, Canada is playing a significant role in addressing the crisis. The country will release 23.6 million Canadian barrels of oil, coordinated with federal and provincial governments, to bolster global supply [MSN]. Canada is also poised to expand its natural gas exports to allies in the coming months.

Economic Implications for Canada

The crisis presents a windfall for Canada’s oil sector, with Alberta royalties and federal tax revenues expected to increase. The increased demand and higher prices are expected to benefit Canadian producers and exporters.

Looking Ahead

The coordinated oil release is intended as a short-term measure to stabilize markets. The Government of Canada, along with provincial partners and industry stakeholders, remains committed to long-term energy security, affordability, and global cooperation. The situation in the Strait of Hormuz remains fluid, and continued monitoring and coordinated responses will be crucial to mitigating further disruptions to global energy supplies.