The International Energy Agency is weighing an unprecedented release from strategic oil stockpiles to combat surging crude prices driven by escalating conflict between the U.S.-Israel alliance and Iran, according to a Wall Street Journal report published Tuesday.
Sources familiar with the discussions indicate this potential release would surpass the previous record of 182 million barrels that member nations deployed to markets through two separate actions in 2022 following Russia’s comprehensive assault on Ukraine.
An emergency session of IEA member nations took place Tuesday, with a final decision on the reserve release expected Wednesday, the Journal reported. The plan would move forward unless any member country raises objections, though even a single nation’s opposition could stall the initiative.
Oil futures markets reacted immediately to news of the potential release, with both U.S. crude and Brent prices declining following the report.
Neither the International Energy Agency nor White House officials provided immediate responses when contacted for comment.
Global oil prices climbed to nearly four-year peaks Monday before retreating Tuesday after President Donald Trump expressed optimism that Middle Eastern hostilities might conclude in the near future.
Energy ministers from G7 nations fell short of approving strategic reserve releases during Tuesday discussions, instead directing the IEA to evaluate current market conditions before taking action.
