Withdrawal of 400 Million Barrels of Oil from Global Reserves to Mitigate the Shock of the War on Iran

In an urgent move to address the global energy crisis, the International Energy Agency, led by Executive Director Fatih Birol, announced the withdrawal of 400 million barrels from strategic oil reserves on March 12, 2026, aiming to stabilize markets after 13 days of the Israeli-American war on Iran, which was affected by the closure of the vital Strait of Hormuz through which about 20% of global energy supplies pass.

Strategic Decision to Calm Markets

Birol explained during a press conference in Istanbul that the coordinated step aims to stabilize oil and gas prices during a "very critical period," describing the decision as "a highly significant development" in facing one of the worst oil price shocks since the 1970s.
He added that the strategic intervention to withdraw from reserves is a key tool to alleviate pressure on global markets and prevent sudden price increases due to military conflict in the region.

Price Expectations and Reactions

The oil markets were immediately affected upon the announcement, experiencing sharp price fluctuations, while U.S. President Donald Trump predicted a significant drop in oil prices as a result of this decision, whereas Iran warned of the possibility of oil prices reaching $200 per barrel after targeting oil tankers near the Strait of Hormuz.
This disparity in expectations reflects the significant risks facing energy markets, as any further escalation in military conflict could drive oil prices back up to record levels.

Impact of the War on the Global Economy

Energy experts confirm that the continuation of the war in Iran doubles the pressures on supply chains and global financial markets, particularly in oil and natural gas, increasing risks for energy-importing economies in Europe and Asia, and threatening global economic growth if supply disruptions persist.

Future Actions and Stability Challenges

Despite the withdrawal of reserves, the market remains fragile, heavily reliant on developments in military and political conflict in the region. Analysts indicate that any further supply disruption or new escalation could lead to a new wave of price increases, making long-term stability in energy markets a challenge for the international community.