The International Energy Agency (IEA) has announced that its 32 member countries, including the US, will release a collective total of 400 million barrels (mbbl) of oil from emergency reserves to stabilise global markets affected by the conflict in the Middle East.
This constitutes the largest coordinated release in the agency’s history.
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To support this initiative, US President Donald Trump authorised the Department of Energy (DoE) to release 172mbbl of oil from the US Strategic Petroleum Reserve, with delivery anticipated to take around 120 days.
US Secretary of Energy Chris Wright also announced that the US plans to replace these reserves with around 200mbbl over the next year at no cost to the taxpayer, highlighting a commitment to stronger energy security compared to previous administrations.
The IEA’s decision was made during an extraordinary meeting of its member governments, convened by executive director Fatih Birol, to evaluate the disruptions caused by the ongoing conflict, which began in February 2026.
The conflict has significantly reduced oil shipments through the Strait of Hormuz, with current export volumes at less than 10% of previous levels.
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By GlobalDataFatih Birol said: “The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA member countries have responded with an emergency collective action of unprecedented size.
“Oil markets are global so the response to major disruptions needs to be global too. Energy security is the founding mandate of the IEA, and I am pleased that IEA members are showing strong solidarity in taking decisive action together.”
The IEA members hold more than 1.2 billion barrels in emergency reserves and an additional 600mbbl under government mandate.
The release strategy will be tailored to suit the circumstances of each member country, with some nations implementing supplementary measures.
Past coordinated stock releases by the IEA occurred in 1991, 2005, 2011 and twice in 2022.
The current crisis has severely disrupted a region responsible for approximately 25% of the world’s seaborne oil trade, which averaged 20mbbl per day in 2025.
The agency stated that it continues to monitor global oil and gas markets closely, offering advice to its member governments as necessary.
Amidst these global stabilisation efforts, significant shifts are occurring in regional transit and trade policies.
Tehran has allowed Indian-flagged oil tankers to navigate the Strait of Hormuz following discussions between the foreign ministers of Iran and India, ensuring the passage of crucial energy shipments, reported Reuters.
The Indian vessels Pushpak and Parimal successfully transited the strait, even as ships affiliated with the US, Europe and Israel remain restricted.
Simultaneously, China has instructed its refiners to halt exports of gasoline, diesel and aviation fuel this month to address potential domestic shortages stemming from the Middle East conflict, according to sources cited by Reuters.
The directive was issued by China’s National Development & Reform Commission.
Meanwhile, the global economy is showing signs of softening ahead of a spike in oil prices, with growth risks outweighing inflation concerns, according to a GlobalData TS Lombard report authored by Steven Blitz.
The term premium on the ten-year Treasury is rising due to breakeven inflation rather than other risks, suggesting a near-term bull steepener and a potential longer-term bear steepener.
Oil futures are in steep backwardation, indicating that the market expects the current price surge to be temporary, with future prices settling around $75. This situation, combined with structural supply and demand changes in the Treasury market, supports receiving fixed and paying floating in the short term.
