In an unprecedented move to stabilise volatile energy markets, the 32 member nations of the International Energy Agency (IEA) have unanimously agreed to release 400 million barrels of oil from emergency stockpiles.
The decision follows a severe disruption to global supplies caused by the escalating conflict in the Middle East.
The collective action, the largest in the IEA’s 52-year history, was finalised during an extraordinary ministerial meeting. It comes as a direct response to the crisis that began on February 28 which has effectively choked the Strait of Hormuz.
Export volumes of crude and refined products through the vital waterway have plummeted to less than 10 per cent of their pre-conflict levels, forcing regional operators to curtail production.
“The oil market challenges we are facing are unprecedented in scale,” said IEA Executive Director Fatih Birol.
“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 Strait of Hormuz is a critical artery for the global economy; in 2025, it accounted for roughly 25 per cent of the world’s seaborne oil trade, carrying an average of 20 million barrels per day. With limited options to bypass the strait, the sudden supply vacuum had threatened to send fuel prices spiralling.
The IEA holds total emergency stockpiles of over 1.2 billion barrels. This marks only the sixth time since its founding in 1974 that the agency has triggered a coordinated release.
The IEA Secretariat is expected to provide specific implementation details shortly, tailored to the national circumstances of each member state.
Japan takes action
Japan, one of the world’s largest energy importers, has taken a particularly aggressive stance. Prime Minister Sanae Takaichi announced that Tokyo would unilaterally release 80 million barrels of oil, equivalent to 15 days of private sector stocks and one month of national reserves, Bloomberg News reported.
Speaking via an NHK broadcast, the Prime Minister confirmed that Japan’s release would commence as early as March 16.
While Japan welcomed the broader IEA coordination, the 80 million barrels from Tokyo represent a significant portion of the total 400-million-barrel international commitment.
Japan’s trade ministry projects that oil shipments from the Middle East would drop from March 20.
