The International Energy Agency (IEA) on Wednesday announced a historic plan to release 400 million barrels of oil, the largest in its history, to curb rising crude prices amid the ongoing U.S.-Israeli conflict with Iran. The release, agreed unanimously by all 32 member countries, will have its timing set in the coming days.
The announcement came as French President Emmanuel Macron chaired a G7 meeting discussing global energy concerns. Germany’s Economy Minister Katherina Reiche confirmed Berlin’s participation, noting that the United States and Japan would provide the largest contributions.
An EU diplomat said the move was largely pushed by the U.S., while U.S. Interior Secretary Doug Burgum welcomed the plan, emphasizing that it aims to relieve global price pressures rather than address an actual energy shortage. “We have a temporary transit problem, which we are resolving both militarily and diplomatically,” he said.
Analysts warned that the effectiveness of the release depends on its daily pace. Even if 100 million barrels are released in a month, the daily addition of 3.3 million barrels would cover only a fraction of the current 20 million barrels per day disrupted due to the blockade of the Strait of Hormuz.
Despite the announcement, oil prices rose, reflecting market doubts about whether the release can fully offset supply disruptions caused by the conflict.
