The International Energy Agency will release 400 million barrels of oil from emergency reserves to address Middle East supply disruptions
Oli SCARFF / AFP via Getty Images
The 32 member countries of the International Energy Agency unanimously agreed Wednesday to make 400 million barrels of oil available from emergency reserves. It's the largest stock release in the history of the organization, which was established in 1974. The move follows a meeting of member governments to address market disruptions resulting from the war in the Middle East that began with U.S. and Israeli attacks on Iran late last month.
Energy prices continued to move higher despite the announcement. Brent crude futures rose 3.4% to $90.77 a barrel on Wednesday morning. U.S. West Texas Intermediate crude gained 2.8% to reach $86.01 a barrel. The global oil market has experienced high volatility since the U.S. and Israel attacked Iran, with Brent prices briefly reaching nearly $120 a barrel earlier this week.
The Dow Jones Industrial Average fell 140 points, or 0.3%, as investors monitored the conflict and energy costs. The S&P 500 rose 0.2% and the Nasdaq $NDAQ Composite gained 0.4%.
Retail fuel costs have increased for 11 consecutive days, according to The New York Times. The national average for gasoline reached $3.58 a gallon on Wednesday, according to AAA, a 20% increase since the start of the conflict. Diesel prices reached $4.83 a gallon, representing a 28% increase over the same period.
The conflict has stopped most traffic through the Strait of Hormuz, a waterway that carried 20 million barrels of oil per day in 2025. Current export volumes of crude and refined products are at less than 10% of levels seen before the conflict, according to the IEA. Options to bypass the strait are limited.
Recent military activity in the region includes the sinking of several Iranian ships, including 16 minelayers, by U.S. forces. Projectiles hit three cargo ships near the Iranian coast on Wednesday, one of them in the Strait of Hormuz itself.
The current energy shock follows a period of relatively stable inflation. In February, the Consumer Price Index rose 2.4% on a year-over-year basis. Analysts suggest that if oil prices remain elevated, U.S. inflation could rise above 3%.
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