The IEA is considering its biggest oil reserve release ever, and the reason behind it is deeply unsettling

The International Energy Agency is considering what would be its largest ever coordinated release of oil reserves as crude prices surge during the ongoing U.S.-Israel war with Iran. As reported by The Wall Street Journal, the proposal is aimed at calming markets rattled by a major disruption to global supply.

Officials familiar with the matter said the proposed release would exceed the 182 million barrels IEA member countries put on the market in 2022 after Russia launched its full-scale invasion of Ukraine. The plan was circulated during an emergency meeting of energy officials from the agency’s 32 member countries on Tuesday.

Member countries are expected to make a final decision on Wednesday, and the proposal will move forward unless even one country objects, which could delay action. The urgency reflects growing concern over how severely the conflict is affecting one of the world’s most important energy corridors.

The pressure point is the near closure of the Strait of Hormuz

The IEA’s proposal is meant to counter the disruption caused by the near-total closure of the Strait of Hormuz. The narrow waterway connects the Persian Gulf to global markets and handles roughly one-fifth of the world’s oil supply each day.

Iranian attacks on tankers in the strait have brought shipments close to a standstill, creating a major threat to global energy stability. Since February 28, when the U.S. and Israel began strikes on Iran, oil prices have climbed as much as 40% and at one point rose above $100 a barrel, with rising gas price panic also entering the political backdrop.

Although oil ended Tuesday below $84, fuel products including diesel have continued to rise. Traders are also watching President Donald Trump’s comments closely for signals about how long the conflict may continue.

Economists have warned that a prolonged rise in oil prices could feed inflation, pressure consumers, and trigger a broader stock market correction. Those concerns help explain why the IEA is weighing such a large intervention.

The agency was created in 1974 after the Arab Oil Embargo and coordinates emergency energy responses among Western nations and their allies. Its members currently hold about 1.2 billion barrels in public stocks along with another 600 million barrels in mandatory commercial inventories.

IEA Executive Director Fatih Birol said that total would amount to roughly 124 days of lost supply from the Gulf. That figure underscores both the scale of the reserves and the seriousness of the disruption now being discussed, amid Republican staffer concerns over the administration’s handling of the war.

Previous reserve releases have produced mixed short-term results. After Russia invaded Ukraine in 2022, traders initially pushed oil prices higher because the move signaled a deeper crisis, though analysts later said the releases helped ease prices.

A more effective example came in 1991, when President George H.W. Bush ordered the first ever Strategic Petroleum Reserve drawdown on the night a U.S.-led coalition attacked Iraq during Operation Desert Storm. IEA members joined that effort, and oil prices fell by more than 20% on the first day of the assault.