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International Oil Prices Volatile as IEA Releases 400 Million Barrels of Strategic Reserves in Emergency Move
International Energy Agency (IEA) to Release Largest-Ever Volume of Strategic Reserves
The International Energy Agency (IEA) has decided to make an emergency release of 400 million barrels of strategic petroleum reserves after crude oil exports through the Strait of Hormuz plummeted to less than 10% of pre-war levels. This marks the largest release in history since the IEA's inception in 1974, and the first in four years since the Russia-Ukraine War. IEA Executive Director Fatih Birol stated that this measure aims to offset the loss of oil supply due to the effective closure of the Strait of Hormuz.
National Contributions to Reserves Release and Oil Price Trends
IEA member countries will share the release volume, with the United States set to release 170 million barrels starting next week, Japan 80 million barrels, and South Korea 22.46 million barrels. While U.S. President Donald Trump confidently asserted that oil prices would soon fall, the market reacted differently. On March 11, local time, West Texas Intermediate (WTI) surged 4.5% to close at $87.25, and Brent crude rose 4.7% to $91.98. Notably, May Brent crude futures broke past $100 during intraday trading, continuing an unstable trend.
Doubts Over Reserves Release Effectiveness and Lack of Long-Term Solutions
Global investment bank Macquarie assessed the current release as insufficient, amounting to only 16 days' worth of crude oil traffic in the Gulf region. While past IEA strategic reserves releases typically led to a decrease in oil prices, this time the surge in prices continues, indicating a different scenario. Experts express concern over the lack of suitable additional response measures if the situation prolongs, emphasizing that the fundamental solution lies in halting the war and normalizing passage through the Strait of Hormuz.
*Source: YouTube: SBS News (2026-03-12)*
