IEA approves 400M-barrel oil release as Hormuz closure rattles markets

On March 12, 2026, the International Energy Agency (IEA) approved a release of 400 million barrels from member countries’ emergency reserves to steady global oil supply. All 32 members backed the action at an extraordinary meeting convened by Executive Director Fatih Birol.

The decision follows the war in Iran that began on Feb. 28, 2026, which has sharply reduced oil shipments through the Strait of Hormuz. Exports of crude and refined products transiting the strait have dropped to less than 10% of pre-war levels.

Before the conflict, about 20 million barrels a day moved through the strait, or roughly a quarter of global seaborne oil trade. With limited alternatives to bypass the chokepoint, several producers have curtailed or shut in output.

The stock release will be phased and adjusted to each country’s situation. Some governments are preparing additional emergency measures to supplement the joint action.

At 400 million barrels, the drawdown is the largest in the agency’s history, more than double the 182 million barrels coordinated in 2022 after Russia’s invasion of Ukraine. It is the sixth IEA stock release, following interventions in 1991, 2005, 2011 and twice in 2022.

IEA governments hold more than 1.2 billion barrels in emergency reserves, with a further 600 million barrels held by industry under government obligations. According to the agency, the goal is to manage the disruption while keeping markets functional during the crisis.

Analysts expect the release to ease tight supply in the near term, though its duration depends on developments in Iran and the wider Middle East. The IEA plans to keep monitoring market conditions and issue further guidance as needed.