IEA to release 271.7 million barrels from strategic reserves after Middle East supply disruption

The International Energy Agency (IEA) said member countries will release 271.7 million barrels from strategic oil reserves after the Middle East conflict disrupted global energy supplies, Agency France Press (AFP) reported.

According to the IEA, oil from strategic stockpiles will be made available immediately in Asia and Oceania, while releases from member countries in the Americas and Europe will begin toward the end of March.

The decision follows an agreement by IEA member states on March 11 to use emergency reserves to stabilise the market after the conflict in the Middle East triggered a sharp rise in oil prices.

The IEA said governments had submitted individual implementation plans detailing how the reserves would be released. The coordinated action represents the largest stockpile release in the agency’s history.

The organisation described the current disruption as the largest supply shock faced by the global oil market, noting that the release would serve as a buffer against shortages.

The emergency drawdown marks the sixth time the agency has coordinated such a response and the first since member countries released reserves following Russia’s invasion of Ukraine in 2022.

Despite the announcement, oil prices have remained close to $100 per barrel, compared with levels below $70 before the conflict began.

The IEA said restoring regular shipping through the Strait of Hormuz would be critical to stabilising global oil flows. Shipping traffic through the waterway has been affected since the escalation of hostilities on February 28 following US-Israeli air strikes on Iranian targets.

The agency added that restoring insurance coverage for vessels and improving physical protection for shipping routes would be essential for the resumption of normal maritime transport in the region.