Canada to Contribute 23.6 Million Barrels of Oil to IEA Release Amid Iran War

Canada will supply 23.6 million barrels of oil as part of a larger International Energy Agency (IEA) plan to stabilize global energy markets, responding to ongoing disruptions caused by the conflict in Iran. This contribution, announced on March 13, 2026, will come from planned increases in production from Alberta’s oil sands, rather than emergency production measures.

IEA Coordinated Release

The IEA, comprised of Canada and 31 other member nations, agreed to release a total of 400 million barrels of oil from strategic reserves. This is the sixth coordinated stock release since the organization’s creation in 1974, and the largest to date, intended to counter surging oil prices and supply disruptions stemming from the war in the Middle East [1].

Canadian Production and Reserves

Canada’s contribution represents approximately 5.9% of the total IEA release. Canadian oil production averaged 5.3 million barrels per day in 2025, making the 23.6 million barrel release equivalent to a 2.6% increase in Canadian supply [1]. Notably, Canada is the only G7 country that does not maintain emergency oil reserves, a practice it is not required to undertake under IEA rules due to its status as a net oil exporter [1].

Market Impact and Strait of Hormuz

Global crude oil prices have experienced significant volatility since the start of hostilities involving Iran on February 28th. Prices briefly exceeded US$120 per barrel, reaching levels not seen since the Russian invasion of Ukraine in 2022 [4]. The conflict has severely impacted oil flows through the Strait of Hormuz, a critical waterway through which approximately 20% of the world’s oil supply typically transits [4]. Iran has threatened vessels attempting passage and is suspected of deploying underwater mines in the area [4].

Potential Windfall for Canada

As the world acts to stabilize oil prices, Canada could see a potential financial benefit. If oil prices remain $20 to $30 above pre-war forecasts, Canada stands to gain. However, a further escalation in oil prices carries the risk of triggering a global recession [2].