The International Energy Agency triggered its largest-ever strategic oil release on Wednesday, flooding the market with 400 million barrels of crude to counter a supply crunch gripping global energy markets.
The extraordinary move came as Brent crude hovered near $91 a barrel amid escalating Middle East conflict and tanker disruptions in the Strait of Hormuz.
Japan moved first. Prime Minister Sanae Takaichi announced Tokyo would tap national reserves as early as next week, positioning itself as a leader in stabilising flows to Asia.
“We cannot let this crisis spiral,” she said, signalling coordination with IEA partners to offset the effective Hormuz blockade that’s slashed maritime traffic by about 80%.
The collective release dwarfs previous efforts, including the 2022 response to Russia’s Ukraine invasion, and aims to cap oil’s rally before it fully ignites broader inflation.
Europe is scrambling too
European Commission President Ursula von der Leyen said the EU is weighing gas price subsidies or direct cuts to households and industry, promising “relief now” as benchmark TTF gas futures doubled in days. “Energy security demands immediate action,” she told reporters in Brussels.
The proposal faces hurdles from fiscal hawks in Germany and the Netherlands but underscores the bloc’s vulnerability after years of weaning off Russian pipeline gas.
Corporate fallout is mounting. Shell declared force majeure on certain LNG cargoes to Asia, citing delivery impossibilities amid rerouted tankers and port congestion.
The move highlights how even majors are rationing amid the chaos, with three more vessels struck in the Gulf Wednesday — bringing the war’s total to 14 ships hit since hostilities erupted.
The military backdrop grows darker. Israel pressed strikes into Iran and Lebanon, including a dawn raid on a Beirut building that local media linked to Hezbollah targets.
The Pentagon reported US forces destroyed “multiple” Iranian vessels near Hormuz, including 16 minelayers, after President Donald Trump warned Tehran against planting explosives in the vital waterway.
“Any mine in that strait answers to overwhelming force,” Trump said from the White House.
Asia feels the strain acutely
Vietnam tapped an emergency fund to subsidise fuel, joining Indonesia and Thailand in shielding consumers from pump prices that have surged 25% in weeks.
Southeast Asian imports, heavily reliant on Middle East crude, now face weeks-long detours around Africa, compounding the pain.
Analysts see the IEA release as a temporary circuit-breaker. “This buys time, but doesn’t fix Hormuz,” said Goldman Sachs’ Daan Struyven.
Oil could still test $100 if strikes hit Saudi or UAE export terminals. For now, governments from Tokyo to Hanoi are spending political capital — and reserves — to keep the global economy from seizing up.
https://invezz.com/news/2026/03/11/iea-unleashes-record-oil-reserves-as-hormuz-crisis-escalates/
