The International Energy Agency announced Wednesday that its member nations have unanimously approved a historic emergency measure, agreeing to release 400 million barrels of oil from strategic reserves to help stabilize global energy markets amid the ongoing conflict in Iran.

The move comes as the war has severely disrupted oil transport through the Strait of Hormuz, a key maritime corridor that normally carries roughly one-fifth of the world’s oil supply—more than 20 million barrels per day. Since late February, tanker traffic through the narrow passage has largely stopped after security threats and attacks on vessels, prompting shipping companies, insurers, and energy firms to avoid the region.

Energy markets reacted immediately to the announcement. U.S. crude prices briefly dipped before climbing again, topping about $88 per barrel during trading. Oil prices had already surged dramatically since the conflict began, rising more than 30% in the United States. Average gasoline prices have also jumped by more than 50 cents, reaching roughly $3.57 per gallon nationwide, while natural gas, jet fuel, and global crude benchmarks have also climbed sharply.

IEA Executive Director Fatih Birol described the coordinated reserve release as a “major action” designed to counter the disruption in global energy supplies. However, he emphasized that restoring normal shipping through the Strait of Hormuz remains essential for stabilizing markets.

The IEA represents 32 major energy-consuming countries, including the United States, United Kingdom, Japan, Germany, Canada, Australia, Italy and Mexico. Together, these nations maintain massive emergency reserves intended to protect against major supply disruptions. The organization estimates its members collectively hold more than 1.2 billion barrels of oil in strategic stockpiles.

In the United States alone, the national strategic petroleum reserve contains over 415 million barrels, according to government data. Other countries across Europe and Asia also maintain significant reserves that could be tapped as part of the coordinated response.

Despite the record release, the additional supply may take time to reach consumers. Once a government authorizes oil from national reserves, deliveries can take nearly two weeks to begin, followed by additional shipping time before the fuel reaches refineries and markets.

The IEA was created after the energy crises of the 1970s to help major oil-importing nations coordinate responses to supply shocks. The organization has triggered emergency releases only a handful of times, most recently in 2022 after Russian invasion of Ukraine, when roughly 180 million barrels were released to stabilize global markets.

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