IEA to release 400M barrels of oil from strategic reserves to combat high prices

The IEA agreed to release 400 million barrels of oil from its strategic reserves as the Iran War continues to send oil prices skyrocketing. — Image credit: Michal Cizek / AFP via Getty Images

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The International Energy Agency agreed to release a historic 400 million barrels of oil from its strategic reserves as the Iran War continues to hinder the oil supply chain and send oil prices skyrocketing, CNBC reports.

The war is causing a chokehold on the Strait of Hormuz, which is a major oil shipping lane under Iran’s and Oman’s control. About a fifth of the world’s oil supply moves through the strait.

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Crude oil prices remained relatively stable following the announcement. Crude oil prices closed on Tuesday at just above $82 a barrel, lower than the $115 a barrel seen directly after Israel and the U.S. began their strikes.

Gas prices have risen alongside crude oil prices, reaching levels Americans haven’t seen since 2024, according to historical data. However, it is still much lower than gas prices were in June 2022, when they averaged more than $5 per gallon.

When will reserves hit the market?

IEA officials said they would release oil reserves in a timeframe that’s appropriate for its member nations, CNBC reports. The 32 countries that comprise the IEA actively work to maintain global energy security.

The IEA was founded after the 1973 oil crisis, when the Organization of Arab Petroleum Exporting Countries implemented a total oil embargo for countries that supported Israel in the 1973 Yom Kippur War.

Fatih Birol, the executive director of the IEA, stated that the release aims to address the immediate impacts of the disruption in oil supply, CNBC reports. However, he said that ships must resume traffic through the Strait of Hormuz to reconstruct a stable oil and gas supply for the global market.

Iran has threatened to continue oil supply disruptions, saying on Tuesday that it could send the price of crude oil to more than $200 a barrel. Some reports have stated that the country has begun laying mines around the Strait of Hormuz.

Before the reports were publicized, President Donald Trump said the U.S. would respond overwhelmingly to Iran’s continued disruptions.

“If Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed, IMMEDIATELY!” he wrote on Truth Social. “If for any reason mines were placed, and they are not removed forthwith, the Military consequences to Iran will be at a level never seen before.”

Devin Pavlou

Devin Pavlou is a digital producer at Straight Arrow News.

Tags: International Energy Agency, Iran, Oil Supply, Strait of Hormuz

Why this story matters

The International Energy Agency's release of 400 million barrels from strategic reserves aims to stabilize oil prices that have surged due to the Iran war's disruption of the Strait of Hormuz, through which roughly one-fifth of global oil supply normally flows.

Gas prices at the pump

Retail gas prices have risen more than 50 cents to a national average of around $3.57 per gallon since the war began, according to reports.

Heating and transportation costs

Diesel and jet fuel supplies face major disruptions as refinery operations have been affected, potentially increasing costs for goods transport and air travel.

Economic pressure from energy costs

Oil prices peaked near $120 per barrel during the conflict, up from around $70 before the war, creating inflationary pressure that affects household budgets and business operating costs.

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Behind the numbers

The IEA will release 400 million barrels from emergency reserves, more than double the 182.7 million barrels released in 2022 after Russia's invasion of Ukraine. According to the IEA, roughly 20 million barrels of oil per day normally transit through the Strait of Hormuz.

Common ground

All sources agree the IEA's 32 member countries unanimously approved releasing 400 million barrels of oil from emergency reserves, the largest such release in the agency's history. Sources also agree the action aims to stabilize markets disrupted by the Iran war and the effective closure of the Strait of Hormuz.

History lesson

IEA nations have released emergency stocks on five previous occasions: during the 1990-1991 Gulf War, after Hurricane Katrina in 2005, during the Libyan civil war in 2011, and twice after Russia's invasion of Ukraine in 2022. The 1991 Gulf War release caused oil prices to fall more than 20% on the first day.

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Sources

CNBC

Bias comparison

Media outlets on the left frame the IEA’s 400 million-barrel release as a "historic," collective remedy — using terms like "most important" and "energy safety net" to stress humanitarian and institutional rescue.
Not enough unique coverage from media outlets in the center to provide a bias comparison.
Media outlets on the right foregrounds scale and security, highlighting "record/400 million" and phrases such as "skyrocketed" and "counter Hormuz crisis" to justify pragmatic market-stabilizing action; centers use concise, urgency-focused wording like "record" and "surging" with de-emphasized symbolism.

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Media landscape

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317 total sources

Key points from the Left

The International Energy Agency members unanimously agreed to release 400 million barrels of oil from strategic reserves to ease soaring prices caused by the Iran war.
The timing of the oil release has not been specified, and the market expects limited quick relief as indicated by minimal changes in U.S. crude prices following the announcement.
The Strait of Hormuz, a critical route for about a quarter of the world's seaborne oil, has been effectively closed due to the Iran conflict, causing crude prices to surge over 25% and retail gas prices to increase by over 50 cents per gallon.
The IEA Executive Director Fatih Birol called the coordinated release unprecedented but noted that securing safe passage through the Strait of Hormuz is essential for meaningful price relief.

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Key points from the Center

On March 11, the International Energy Agency recommended a record release of 400 million barrels from emergency stocks, unanimously agreed by its 32 member countries.
Since Feb. 28, oil prices surged near four-year highs as Iran's attacks effectively closed the Strait of Hormuz, cutting global oil export volumes to less than 10% of prewar levels.
Germany's Economy Minister Katherina Reiche said Germany and Austria would release reserves, with Japan starting on Monday, and the US and Japan identified as the largest contributors.
Markets reacted skeptically and oil prices rebounded after the IEA announcement, as analysts warned the 100 million barrels release over a month equals around 3.3 million barrels per day, a fraction of the around 20 million barrels per day disruption.
Having released reserves five times, the IEA emphasized that resuming Strait of Hormuz transit is crucial, with over 1.2 billion barrels of emergency stocks, Birol said, 'This is a major action aiming to alleviate the immediate impacts of the disruption in markets.

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Key points from the Right

The International Energy Agency will release 400 million barrels of oil from strategic reserves, the largest coordinated release ever, to address supply disruptions caused by the war involving Iran.
All 32 IEA member countries unanimously agreed to this emergency release to stabilize markets amid the near closure of the Strait of Hormuz, a key global oil transit route handling about one-fifth of oil exports.
The release surpasses the previous record of 182.7 million barrels released after Russia's invasion of Ukraine in 2022.
IEA Executive Director Fatih Birol stated that the releases will occur over a timeframe suitable to each member country’s circumstances to mitigate unprecedented oil market challenges.

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