The International Energy Agency proposed the largest emergency release of oil from strategic reserves in its history on Wednesday, urging members to discharge 400 million barrels over at least two months. The move aims to ease skyrocketing crude prices triggered by the ongoing U.S.-Israel conflict with Iran, which has led to the near-total closure of the Strait of Hormuz and attacks on tankers.

Oil prices have surged as much as 40% since U.S. and Israeli strikes on Iran began on February 28, 2026, briefly exceeding $100 per barrel before retreating. Brent crude fluctuated near $87 a barrel early Wednesday after climbing as much as 3.7%, while West Texas Intermediate hovered around $83, reflecting market volatility amid shifting U.S. signals on the conflict. The Strait of Hormuz, which handles one-fifth of global oil flows, has seen tanker traffic dwindle due to Iranian disruptions, potentially threatening 20 million barrels per day in supply.

IEA members, primarily OECD countries, hold about 1.2 billion barrels in public strategic stocks plus 600 million in mandatory commercial inventories, equivalent to roughly 124 days of lost Gulf supply. The proposed 400 million barrels would exceed the previous record of 182 million barrels released in two stages in 2022 following Russia's invasion of Ukraine.

A decision on the proposal is expected later Wednesday, March 11, or Thursday, March 12, with adoption likely absent objections from any member. Countries would have up to 90 days to contribute their shares, with the U.S. and Japan as the largest holders expected to lead. French President Emmanuel Macron hosted a G7 video conference at 10 a.m. ET on Wednesday to discuss energy responses.

Germany's Economy and Energy Minister Katherina Reiche confirmed participation if approved, citing solidarity. Japan announced a unilateral release starting March 16 of 15 days' worth from private stockpiles and 30 days' worth from government reserves. French Finance Minister Roland Lescure stated, "We must send a very clear message. If we can’t reopen the Strait of Hormuz right away, we will replace it with other oil."

Analysts noted mixed historical results from such releases, with the 2022 action initially raising prices before helping lower them, while the 1991 Gulf War release dropped prices over 20% on day one. Markets questioned the plan's pace, estimating daily injections of around 3.3 million barrels if phased over a month, far below potential disruptions. G7 energy ministers backed proactive measures, with talks possibly extending to non-members like China and India.