IEA considers historic oil reserves release amid conflict in Iran

The International Energy Agency (IEA) is evaluating a proposal to release up to 400 million barrels of crude oil from member states' reserves to combat soaring prices caused by the U.S.-Israel war with Iran and the resulting blockage of the Strait of Hormuz. If finalized, this would be the largest such release in the agency's history. Japan has announced plans to contribute approximately 80 million barrels starting March 16, while Germany has committed to 19.51 million barrels. While G7 energy ministers have requested an IEA assessment of the market, a formal agreement has not yet been fully reached as of Tuesday. The IEA is expected to model various scenarios regarding total volume and country-specific allocations. Concurrently, German authorities are considering domestic measures such as limiting fuel price increases and tightening antitrust regulations in the retail sector. Oil prices recently reached near four-year highs before experiencing volatility following geopolitical forecasts. The proposed move aims to prevent supply shortages as 70% of Japan’s oil imports and significant global supplies transit through the affected region.