Europe to release oil reserves after IEA call amid Iran war

Germany and Austria have announced plans to release portions of their strategic oil reserves following a request from the International Energy Agency (IEA) for member nations to collectively release 400 million barrels of oil to stabilise global energy markets disrupted by the ongoing Iran war. The move aims to ease supply concerns and prevent sharp spikes in international oil prices.

Germany’s economy minister said the decision came after the IEA late Tuesday asked its member countries to tap emergency oil reserves to help cushion the global market. The planned release of 400 million barrels — equivalent to about 54 million tonnes of oil — would be one of the largest coordinated actions ever taken by the agency to address supply disruptions.

Officials in Berlin confirmed that Germany will contribute by releasing part of its national oil stockpile. Austria has also indicated it will participate in the coordinated effort, though the exact quantity to be released has not yet been detailed.

The proposed release would surpass the previous record set in 2022, when IEA member countries collectively released 182.7 million barrels from emergency reserves following the energy shock triggered by Russia’s full-scale invasion of Ukraine.

Meanwhile, Japan has also announced that it will begin releasing a portion of its oil reserves starting Monday as part of the coordinated response.