By Gloria Nosa
Offshore News Correspondent
In an unprecedented response to the deepening crisis in the Middle East, member states of the International Energy Agency have agreed to inject about 400 million barrels of crude oil into the global market in a coordinated effort to stabilise surging energy prices.
The decision, described as the largest emergency oil release ever organised, is aimed at cushioning the global economy from supply disruptions triggered by escalating tensions surrounding Iran and the strategic Strait of Hormuz.
Attempt to Calm Global Energy Markets
According to the IEA’s Executive Director, Fatih Birol, the emergency reserves will be deployed to help offset the sudden drop in oil shipments caused by restricted traffic through the Strait of Hormuz — one of the world’s most critical energy corridors.
Birol explained that the release is intended to soften the immediate blow to global oil markets. However, he noted that true market stability will depend on the restoration of normal energy shipments through the waterway, which handles a huge share of global crude exports.
Bigger Than Any Previous Emergency Release
The scale of the new intervention far exceeds past coordinated actions. During the energy shock that followed the Russian invasion of Ukraine, global governments released around 182 million barrels from emergency reserves.
At the same time, the United States Department of Energy also authorised an additional 180 million barrels from the country’s Strategic Petroleum Reserve over several months to cool rising fuel prices.
The newly announced 400-million-barrel release dwarfs those earlier efforts.
Supply Losses Still Massive
Despite the enormous volume, energy experts warn that the measure may still struggle to fully compensate for the disruption in global oil supply.
The Strait of Hormuz normally carries nearly 20 percent of the world’s oil shipments. With tanker movements now heavily restricted due to security risks, roughly 15 million barrels of crude oil and 5 million barrels of refined fuel products are reportedly unable to reach international markets each day.
At that pace, analysts say the newly released reserves could be absorbed in less than a month.
Oil Prices Swing Wildly
The uncertainty has triggered sharp movements in energy markets.
Global benchmark Brent Crude climbed roughly 4 percent to about $91 per barrel, while West Texas Intermediate rose to around $87 per barrel.
Prices have swung dramatically in recent days. At one point earlier in the week, both benchmarks surged past $100 per barrel — the highest level seen in almost four years — before retreating amid shifting geopolitical signals.
Limited Relief for Fuel Consumers
Experts caution that releasing strategic reserves may only provide short-term relief for motorists and businesses.
A previous coordinated release in 2022 reduced gasoline prices in the United States by only 17 to 42 cents per gallon, according to data from the United States Department of the Treasury.
Yet fuel costs have already surged again following the escalation of hostilities between the United States, Israel and Iran. According to the American Automobile Association, gasoline prices in the U.S. have risen by about 60 cents per gallon, bringing the national average to roughly $3.58.
Rising Security Threats in the Gulf
Concerns over global oil supply intensified after intelligence reports suggested that Iran may have begun deploying naval mines across parts of the Strait of Hormuz.
Security analysts believe the country could possess thousands of mines, potentially capable of severely disrupting commercial shipping passing through the narrow corridor.
The situation has further escalated after the United Kingdom Maritime Trade Operations reported that three vessels were struck by unidentified projectiles near the Strait — an incident that heightened fears about the safety of the world’s most important oil route.
Markets Watching the Conflict Closely
Some temporary easing in oil prices occurred after comments from Donald Trump suggested that the confrontation could end sooner than expected.
At the same time, Saudi Aramco announced it would increase crude flows through a pipeline leading to the Red Sea port of Yanbu, restoring roughly 70 percent of its normal export capacity.
However, the broader geopolitical situation remains volatile. Iranian officials say they have launched some of their largest military operations since the conflict began, while Israeli forces confirmed additional airstrikes targeting sites in Tehran.
Energy strategists warn that until tensions in the region ease and shipping routes reopen fully, oil markets will remain highly unpredictable — and the emergency release of reserves may only buy the world limited time.
