Thirty-two countries have agreed to release 400 million barrels of oil from their strategic reserves in the largest coordinated drawdown since the International Energy Agency was founded in 1974. The move, announced on March 11, is a direct response to the near-total shutdown of tanker traffic through the Strait of Hormuz, which normally handles roughly 20 million barrels of crude and petroleum products per day.
The release dwarfs all previous coordinated efforts. The IEA’s 2022 drawdown following Russia’s invasion of Ukraine totaled 183 million barrels. This time, the volume is more than double, reflecting the scale of disruption caused by the ongoing conflict between the United States, Israel, and Iran.
The United States Is Leading the Drawdown
The U.S. Department of Energy confirmed it will contribute 172 million barrels from the Strategic Petroleum Reserve, accounting for 43% of the total release. Deliveries are set to begin within days and will take approximately 120 days at planned discharge rates, amounting to roughly 1.4 million barrels per day.
The SPR currently holds about 415 million barrels out of a total capacity of 715 million. Secretary of Energy Chris Wright said the administration plans to replace approximately 200 million barrels within one year at no cost to taxpayers. Other countries have announced their own contributions, including South Korea at 22.46 million barrels, Germany at roughly 19.7 million barrels, France at 14.5 million barrels, and the United Kingdom at 13.5 million barrels.
Oil Prices Remain Above $100 Despite the Release
Markets have not responded the way policymakers hoped. Brent crude closed at $103.14 per barrel on Friday, March 14, up 2.67% on the day. U.S. West Texas Intermediate settled at $98.71, up 3.11%. Crude prices have risen more than 17% since the release was announced, as traders concluded that the stockpile drawdown cannot replace the volume of oil lost while the Strait of Hormuz remains effectively closed.
Iran’s new supreme leader has publicly vowed to keep the strait shut, and tanker movements through the waterway have dropped to less than 10% of pre-conflict levels. The 1.4 million barrels per day the U.S. plans to release covers only about 15% of the supply currently blocked.
What This Means for Entrepreneurs and Small Businesses
The sustained spike in oil prices is already hitting business owners across the country. Higher fuel costs increase shipping and logistics expenses, raise the price of raw materials, and squeeze margins for any company that depends on transportation. Consumer sentiment has already dropped to its lowest point of 2026 as gas prices climb, and that pullback in spending flows directly into reduced revenue for restaurants, retail, and service businesses.
For founders in manufacturing, construction, and e-commerce, the math is straightforward: higher energy costs mean higher input costs. Surveys indicate that roughly 40% of small businesses have already raised prices in response. Those that absorb the increase face thinner margins at a time when the broader economy is showing signs of strain, including a revised fourth-quarter GDP growth rate of just 0.7% and ongoing uncertainty tied to the Iran conflict.
How Long the Release Can Last
The IEA’s total emergency reserves stand at roughly 1.2 billion barrels, with an additional 600 million barrels held as government-obligated industry stocks. At the current release rate, the 400 million barrels will be fully deployed within four months. If the Strait of Hormuz remains closed beyond that window, there is no clear backup plan to keep markets supplied at current levels.
This is only the sixth time in the IEA’s 52-year history that member countries have coordinated a strategic release. The previous five occurred in 1991, 2005, 2011, and twice in 2022. None of those situations involved a disruption of this magnitude.
