IEA Launches Largest Ever Oil Reserve Release Amid Middle East Conflict

The International Energy Agency (IEA) is coordinating the release of 400 million barrels of oil from strategic reserves of its 32 member countries, a move aimed at stabilizing global oil markets disrupted by the ongoing conflict in the Middle East. The release will occur in two phases, with immediate availability in Asia and Oceania, and deployment in Europe and the Americas beginning at the end of March.

Supply Disruptions and Market Impact

The conflict, which began on February 28, 2026, following US and Israeli airstrikes against targets in Iran, has severely impeded oil flows through the Strait of Hormuz. Export volumes have plummeted to less than 10% of pre-conflict levels, forcing production curtailments across the region . The IEA has described the situation as creating the biggest oil supply disruption in history .

Despite the coordinated release, oil prices remain elevated, hovering around $100 per barrel – the highest level since 2022. Prior to the outbreak of hostilities, oil traded below $70 per barrel .

Resuming Stable Flows

The IEA emphasizes that the restoration of regular vessel traffic through the Strait of Hormuz is crucial for stabilizing oil supplies. The agency highlights the demand for “adequate insurance mechanisms and physical safeguards” to facilitate the resumption of flows . Iran has effectively blocked the strait since the start of the conflict, impacting a waterway that previously carried a fifth of the world’s crude oil.

Sixth Coordinated Release

This marks the sixth time IEA members have tapped into their strategic oil reserves. Previous coordinated releases occurred in 1991, 2005, 2011, and twice in 2022 . IEA members collectively hold emergency stockpiles exceeding 1.2 billion barrels, with an additional 600 million barrels held by industry under government obligation.

Latvia’s Participation

Latvia is among the IEA members participating in the release, having submitted its individual implementation plan to the agency .

The IEA was created in 1974 and its founding mandate is energy security .