The International Energy Agency said governments have pledged to make 271.7 million barrels of oil available from strategic reserves, a coordinated step intended to ease pressure on global crude markets after prices spiked amid supply disruptions linked to the Iran conflict.
Oil has been volatile as the war in the Middle East disrupted tanker traffic through the Strait of Hormuz - a critical corridor that normally handles about 20% of global oil shipments. Traders have been closely monitoring risks to supplies in the Gulf while oil has traded near the $100 per barrel level during the conflict.
Strategic stock releases are used to calm markets during major supply shocks by adding extra crude to world markets until normal flows can be restored. The IEA characterized the commitments as a measure to inject additional oil into markets while disruptions persist, with the explicit aim of reducing upward price pressure.
The 271.7 million-barrel commitment follows earlier actions this month by governments working with the agency. Earlier this month the IEA announced what it described as the largest oil stock release in its history, with governments agreeing to make about 400 million barrels from emergency reserves available to help stabilize markets amid disruptions caused by the war.
The agency has tapped strategic reserves in prior crises as well. Member countries released about 182 million barrels in 2022 after Russia's invasion of Ukraine triggered a sharp spike in oil prices, underscoring the IEA's reliance on coordinated reserve releases as a tool to respond to sudden supply shocks.
Markets remain attentive to developments around tanker movements through the Strait of Hormuz and broader supply risks in the Gulf. The new commitments of 271.7 million barrels are intended to provide an interim supply buffer as officials and market participants await the resumption of normal flows.