Rich countries agree to release record amounts of emergency oil reserves in an attempt to calm rising prices
The International Energy Agency (IEA) announced it will release 400 million barrels of emergency oil reserves, the largest in its history, to ease global price surges caused by the ongoing war in Iran and halted shipments through the Strait of Hormuz.
The decision follows attacks by Iran on commercial ships and oil facilities in the Gulf, which have disrupted roughly 20% of the world’s energy supply. Export volumes of crude and refined products are currently below 10% of prewar levels, with Asia particularly affected, according to IEA executive director Fatih Birol.
The emergency release includes contributions from G7 countries, accounting for 70% of the total, with France pledging 14.5 million barrels. Germany, Austria, and Japan have also committed to releasing parts of their reserves, with Germany set to provide approximately 19.7 million barrels.
The IEA reserves, established in 1974 after the Arab oil embargo, now total over 1.2 billion barrels of public stocks, with an additional 600 million barrels held under industry obligations. Previous emergency releases occurred during the 1990-1991 Gulf War, Hurricane Katrina, the Libyan civil war, and twice following Russia’s invasion of Ukraine.
In parallel, Germany and Austria are introducing measures to limit price hikes at fuel stations. Germany will restrict increases to once per day, while Austria will allow three price changes per week, aiming to protect consumers and businesses during the energy crisis.