by International Energy Agency Announces Unprecedented Oil Release
Member countries of the International Energy Agency (IEA) have unanimously agreed to release 400 million barrels of oil from their emergency reserves. This will be the largest release of oil reserves in the organization’s history and already the sixth coordinated release overall. The goal of this step is to mitigate the consequences of disruptions in the global market caused by the military conflict in Iran.
Critical Situation in the Strait of Hormuz
According to the agency, in 2025, an average of 20 million barrels of oil per day were transported through the Strait of Hormuz, accounting for about 25% of global seaborne oil trade. However, these flows have now shrunk to less than 10% of pre-conflict levels. The effective closure of the strait and reports of attacks by Iranian forces on vessels in the region have forced local producers to halt or reduce extraction, as they cannot export their oil. The IEA also noted that alternative routes bypassing the strait are limited.
Assistance is unlikely to be immediate, as emergency reserves will be released “over a period corresponding to the national circumstances of each member country and will be supplemented by additional emergency measures from some countries.” This means oil will begin to reach the market, but some members may spread the release of stocks over time.
Leadership Statements and Historical Context
IEA Executive Director Fatih Birol stated: “Oil markets are global, so the response to serious disruptions must also be global. Energy security is a fundamental mandate of the IEA, and I am pleased that the agency’s members are demonstrating strong solidarity by taking decisive action together.”
Oil markets are global, so the response to serious disruptions must also be global. Energy security is a fundamental mandate of the IEA, and I am pleased that the agency’s members are demonstrating strong solidarity by taking decisive action together.
IEA member countries hold emergency stocks of over 1.2 billion barrels, plus an additional 600 million barrels of “industry stocks held under government obligation.” This is only the sixth time in history that a coordinated release has occurred, following similar actions in 1991, 2005, 2011, and twice in 2022.
Sharp Surge in Fuel Prices
On the US domestic market, the average national price per gallon of gasoline has sharply risen to $3.578. This means prices have jumped 38 cents in a week and 64 cents over the past month. They are also significantly higher than last year’s average price of $3.081.
Owners of diesel vehicles are facing particularly severe consequences, as the average national price has reached $4.830 per gallon. This is $1.163 more than a month ago, representing a 31.7% increase. Additional costs are likely to be passed on to consumers, as many goods are transported by diesel-powered trucks and semi-trailers.
On the ninth day of Operation ‘Epic Mistake,’ oil prices have doubled, and all goods have skyrocketed. We know the US is conspiring against our oil and nuclear facilities, hoping to contain a massive inflationary shock. Iran is fully prepared. And we have many surprises too.
The announcement of the reserve release comes amid tense geopolitical rhetoric and direct actions in the region. The effectiveness of this large-scale step remains to be assessed, as markets react not only to physical supply but also to expectations and psychology. The rise in diesel prices may become one of the most tangible consequences for the global economy, as it directly impacts logistics and the cost of virtually all goods. A long-term resolution to the crisis will likely depend not so much on the temporary release of stocks, but on de-escalating the conflict and restoring safe navigation in the critical strait.
