International Energy Agency Launches Unprecedented Response To Combat Global Oil Shock

Member countries of the International Energy Agency voted unanimously on March 11 to release a combined 400 million barrels of oil from their reserves in an unprecedented action to ease a global supply crisis.

The IEA announcement led to U.S. crude oil prices falling to lows for a time, but prices later reversed, climbing beyond $88 per barrel around midday, according to NBC News. The market response to the announcement signals potential concern about an extended conflict, according to the outlet. Worries have continued since the U.S. and Israel began striking Iran on Feb. 28 and maritime traffic in the Strait of Hormuz effectively halted.

The IEA did not provide a firm timeline for when the reserves would be released and when the additional oil supply would hit the market. The agency said reserves would be deployed in an appropriate time frame for its 32 member countries, according to a press release.

“The conflict in the Middle East is having significant impacts on global oil and gas markets, with major implications for energy security, energy affordability and the global economy. For oil, the Strait of Hormuz normally provides a route to market for $15 million barrels per day of the global crude oil supply and another $5 million barrels per day of oil products,” IEA Executive Director Fatih Birol said in a broadcast, noting that the conflict has “all but stopped” the flow.

He called the unanimously passed release the largest in the agency’s history. Birol added that tankers must resume passing through the Strait of Hormuz to bring stable oil supply to satiate global demand.

Today, @IEA Member countries unanimously agreed today to carry out the largest ever oil stock release – making 400 million barrels from their emergency reserves available amid market disruptions from the Middle East conflict.

Read more 👉 https://t.co/4HGtR7ZYZB pic.twitter.com/sPH1rOm8LY

— International Energy Agency (@IEA) March 11, 2026

The conflict with Iran has “impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10% of pre-conflict levels,”  the press release reads. “This is forcing operators across the region to shut in or curtail a substantial amount of production.”

Middle East producers winding down production and disruptions to oil infrastructure and refinery operations, causing issues for diesel and jet fuel supplies, Birol said. (RELATED: What Is Going On With The The Strait Of Hormuz?)

IEA member states maintain an excess of 1.2 billion barrels of emergency oil stock, with another 600 million in industry stock kept under government obligation, according to the press release.

JPMorgan Chase commodities analysts said the U.S. Energy Department doesn’t kick off deliveries for roughly 13 days after such announcements, a delay further compounded by shipping time, according to a note obtained by NBC News. “[P]olicy measures may have limited impact on oil prices unless safe passage through the Strait of Hormuz is assured,” they continued.

Ships transiting the Strait of Hormuz help meet the daily demand of over 100 million crude oil barrel with more than 20 million barrels of crude each day, representing approximately 20% of the daily demand, according to NBC News. The ongoing strain in the strait has led to the largest oil disruption on record, according to an analysis by the consulting firms Rapidan Energy Group and Wood Mackenzie reviewed by CNBC. Oil prices have been fraught since the war with Iran kicked off, the outlet noted.