IEA members agree to release emergency oil reserves amid Mideast conflict

PARIS -- The International Energy Agency (IEA) has recommended a release of 400 million barrels of oil from stockpiles, the largest such move in IEA history, Executive Director Fatih Birol said on Wednesday.

The 32 member countries unanimously agreed to make available to the market 400 million barrels of oil from their emergency reserves, Birol said at a press conference.

The release would take place over a timeframe appropriate to the national circumstances of each member country, he added.

According to Birol, the IEA secretariat will provide further details of how this collective action will be implemented in due course, and the agency will continue to closely monitor global oil and gas markets.

IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation.

The conflict in the Middle East has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently falling to less than 10 percent of pre-conflict levels, according to the IEA.

The move to release emergency oil reserves came ahead of an online meeting of the Group of Seven (G7) leaders, scheduled later in the day, to discuss the economic consequences of the conflict between the United States, Israel and Iran.

The G7 energy ministers, under the French presidency, met via videoconference on Tuesday against a backdrop of heightened volatility in oil prices. On Monday, the price for Brent crude, the international benchmark, briefly climbed to around $119 per barrel, its highest level since mid-2022.

In a statement released earlier on Wednesday, the ministers said they in principle support the implementation of proactive measures to address the situation, including the use of strategic reserves.