IEA Moves to Accelerate Oil Reserve Releases as Hormuz Crisis Drags On

The International Energy Agency (IEA) has agreed to accelerate the release of approximately 100 million barrels of emergency oil stocks, including more than 20 million barrels of diesel, as the prolonged Strait of Hormuz crisis continues to strain global energy supplies.

The decision, announced Thursday following a meeting of the agency’s Governing Board, comes amid mounting concerns over diesel shortages, high fuel prices and renewed attacks on commercial shipping in the Middle East.

According to the IEA’s statement, member countries have already released approximately 330 million barrels under the emergency stock release agreed in March in response to the Iran war. The agency said it would take steps to accelerate the remaining releases, with more than 20 million barrels of diesel to be made available as soon as possible.

The original agreement called for a record 400 million barrels of oil and petroleum products. However, some member countries have released more than initially pledged, while others plan to do the same, meaning the final total is expected to exceed 400 million barrels.

The latest decision primarily speeds up previously committed releases rather than establishing an entirely new emergency stock drawdown. The IEA did not provide a specific timetable for completing the releases.

The renewed push comes as the agency warns that the global diesel shortage could persist well into 2027.

In its October Oil Market Report, published Wednesday, the IEA said disruptions to production and exports from the Middle East and Russia removed approximately 1.3 million barrels per day of diesel and gasoil exports from the market in September compared with a year earlier.

While crude oil shipments from the Persian Gulf have recovered significantly from their lows earlier in the conflict, refined petroleum product exports remain severely constrained.

Middle Eastern refined product shipments averaged 1.9 million barrels per day in September, compared with 4.7 million barrels per day before the war. Meanwhile, total oil flows through the Strait of Hormuz reached 10.9 million barrels per day during September, supported by increased tanker movements and ship-to-ship transfers in the Gulf of Oman.

Attacks on commercial vessels have intensified in October, including the sinking of the Singapore-flagged containership GFS Pride after it was struck by a projectile while transiting the Strait of Hormuz.

The continued disruption is also eroding global oil inventories. The IEA estimates that observed oil stocks at the end of September were 509 million barrels below their pre-war levels, leaving the market with reduced protection against further supply shocks.

Despite a rebound in Gulf crude exports, the agency expects constrained diesel supplies and elevated transportation costs to continue weighing on global energy markets. It forecasts global oil demand will decline by 2.6 million barrels per day in 2026 as higher prices and weaker economic activity take their toll.

The Governing Board also called on member countries with oil production and refining capacity to increase supplies, particularly diesel, and emphasized the importance of maintaining the free flow of energy trade.

The IEA said it would continue monitoring the emergency releases and provide further recommendations to G7 leaders based on updated market assessments, with particular attention to diesel supplies.