IEA Begins Largest-Ever Emergency Oil Release as Hormuz Closure Threatens Global Supply

The International Energy Agency (IEA) on Sunday announced that its member countries across Asia and Oceania will begin releasing emergency oil stocks immediately, while reserves from Europe and the Americas will be made available starting at the end of March. The move is part of a coordinated international effort to stabilise energy markets and ease rising oil prices amid ongoing geopolitical tensions.

In a statement, the Paris-based agency described the action as “by far the largest ever,” saying it would provide a significant buffer against supply disruptions. The release is intended to inject additional oil into global markets quickly, helping to curb price volatility and ensure adequate supply.

The IEA said it will make about 400 million barrels of oil available from emergency reserves held by its member nations. According to the latest update, countries have so far committed nearly 412 million barrels from government, industry, and other stockpiles. Of this total, approximately 72 per cent will be crude oil , with the remainder consisting of refined petroleum products such as diesel and gasoline.

This unprecedented release is more than double the 182.7 million barrels coordinated by the agency in 2022 following Russia’s full-scale invasion of Ukraine, underscoring the scale of current market concerns.

Founded in 1974 and headquartered in Paris, the IEA is an intergovernmental organisation that advises industrialised nations on energy policy, security, and sustainability. It coordinates collective responses during supply crises by organising the release of strategic petroleum reserves held by member countries.

Officials said the staggered release schedule immediate in Asia-Pacific regions and later in Western markets is designed to maximise impact where supply pressures are most acute while maintaining a steady flow of additional oil into the global system over the coming weeks.

The agency emphasised that the coordinated action aims to reassure markets, prevent shortages, and protect consumers from further price spikes as uncertainty continues to weigh on global energy supplies.