On Wednesday, March 11, the International Energy Agency (IEA) agreed to release 400 million barrels of oil to address the supply disruptions caused by the Iran conflict, marking the largest relief effort in the agency’s history.
IEA has not set a specific timetable for when the oil will be released to the market. The organization stated that the reserves will be released in stages based on the specific circumstances of its 32 member countries.
IEA’s Executive Director Fatih Birol said in a statement, “Our oil market is facing unprecedented challenges, so I am very pleased that IEA member countries have taken unprecedented emergency collective action.”
“The oil market is global, so a global response is needed to address major supply disruptions,” he said. “Energy security is the founding mission of IEA, and I am pleased to see IEA member countries demonstrating strong unity and taking decisive action together.”
However, energy analysts warn that even with IEA tapping into its maximum oil reserves, it may not be enough to offset the daily volume of crude oil transported through the Strait of Hormuz. Under normal circumstances, nearly 20 million barrels of oil pass through the Strait of Hormuz each day.
The Strait of Hormuz is a narrow sea passage along the Iranian coast that connects the Persian Gulf and the Gulf of Oman. Approximately 20% of the world’s oil and natural gas is usually transported through this strait.
Since the outbreak of the war on February 28, Iran has been continuously attacking commercial ships attempting to pass through the Strait of Hormuz, effectively blockading the waterway.
Japanese Prime Minister Sanae Takai stated on Wednesday that Japan plans to act before the IEA by releasing national oil reserves as early as next Monday (16th) due to Japan’s “extremely high reliance on Middle Eastern oil.”
Japan last released oil reserves in 2022 following Russia’s invasion of Ukraine. As of the end of 2025, Japan’s oil reserves amount to approximately 470 million barrels, equivalent to 254 days of usage. Releasing reserves to the market is expected to alleviate supply concerns and may help curb price increases of various commodities such as gasoline and plastics produced from oil.
IEA member countries currently hold over 1.2 billion barrels of public emergency oil reserves, with an additional 600 million barrels of industry reserves held by governments.
Following Russia’s full-scale invasion of Ukraine in 2022, IEA released about 182 million barrels of oil to support the energy market. At that time, oil prices surged to over $100 per barrel. IEA’s announcement on Wednesday to release 400 million barrels of oil is more than double the amount initially released at the start of the Russia-Ukraine conflict.
In early trading on Wednesday, concerns about the continued closure of the Strait of Hormuz causing massive supply shortages led major OPEC oil-producing countries to significantly reduce oil production in the Gulf region due to a lack of storage facilities, resulting in a large amount of crude oil being unable to be transported out, leading to market panic. Oil prices rebounded, offsetting the impact of the news of IEA preparing to release the largest-ever strategic oil reserves.
As of Wednesday morning at 6:31 Eastern Time, the price of Brent crude futures for the nearest month contract once again surpassed $90 per barrel, rising to $91.15 per barrel, an increase of 3.80% from the previous trading day’s close.
The price of the U.S. benchmark West Texas Intermediate (WTI) crude oil also rose to over $86 per barrel, reaching $86.86 per barrel, showing an increase of 4.10% so far that day.
On Monday night and Tuesday, oil prices briefly stabilized as the market seemed to be betting on U.S. President Trump’s remarks about the Iran conflict being “close to an end.”