Gotrade News - The International Energy Agency (IEA) has decided to release 400 million barrels of oil from its reserves. This action is being taken to address supply disruptions caused by the conflict in Iran, marking the largest move in IEA's history. This is critical as it may ease concerns over a surge in energy prices.
This emergency measure was announced after the Strait of Hormuz nearly came to a halt for oil tankers, which typically transport about 20% of the world's oil and gas. The implications of this disruption could be significantly detrimental to the global economy. The conflict that began on February 28, 2026, between the United States and Israel versus Iran has complicated the global energy supply.
The conflict has caused oil prices to spike, with Brent crude prices nearly reaching USD 120 per barrel. However, prices eased after the US President indicated that the war could soon end. Nonetheless, market uncertainty remains high as attacks continue.
The IEA stated that this oil release is meant to address the immediate impact of supply disruptions. IEA Executive Director Fatih Birol emphasized the importance of resumed tanker traffic through the Strait of Hormuz for global supply stability. This strait is a crucial corridor for world oil.
IEA members, including developed countries in Europe, North America, and Northeast Asia, will release reserves according to their individual situations. Currently, IEA member countries hold more than 1.2 billion barrels of emergency reserves. Additionally, there are 600 million barrels of industrial reserves.
This situation represents the largest energy crisis since the 1973 global oil crisis. Previously, the largest oil release by IEA member countries in 2022, in response to Russia's invasion of Ukraine, was only 182.7 million barrels. Today's decision underscores the gravity of the current situation.
Several countries, such as Japan, are also prepared to utilize their national reserves. Their goal is to mitigate high dependency levels on energy supplies from the Middle East. Coordination among IEA member countries is being conducted to alleviate potential further market disruptions.
While the expanded conflict in the Middle East places the energy market in a precarious situation, the IEA's actions demonstrate a serious effort towards stabilization. However, analysts warn that this release alone may not be sufficient to offset ongoing supply disruptions.
Founded in response to the 1973 oil crisis, the IEA now faces one of its most significant tests. The international community is expected to continue monitoring developments in this situation to suppress further crisis threats.
Reference:
- Liputan6, IEA Sepakat Lepas 400 Juta Barel Minyak, Ini Alasannya. Accessed on March 12, 2026
- Kabar Bursa, IEA Kucurkan 400 Juta Barel Minyak Darurat, Dampak Perang Iran Meluas. Accessed on March 12, 2026
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