Canada and a group of dozens of other countries have agreed to release 400 million barrels of oil from their strategic reserves as the Iran war threatens global supplies.
The International Energy Agency (IEA), which includes Canada and 31 other member countries, said in a statement on Wednesday that the meeting was held “to assess market conditions amid the conflict in the Middle East and to consider options to address supply disruptions.”
The IEA said it was the sixth coordinated stock release since the organization was created in 1974.
“The oil market challenges we face are of an unprecedented scale, so I am very pleased that IEA member countries have responded with urgent collective action of an unprecedented scale,” IEA Executive Director Fatih Birol said in a statement.
“Oil markets are global so the response to major disruptions must be global. Energy security is the IEA’s founding mandate, and I am pleased that IEA members are showing strong solidarity in taking decisive action together.”
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Iran has blocked the Strait of Hormuz shipping lane, threatening any ships that attempt to pass through the narrow channel that separates the Persian Gulf from global shipping lanes. About 20 to 25 percent of the world’s oil supply depends on the navigable strait.
According to the IEA, its members hold emergency stocks of more than 1.2 billion barrels of oil, with an additional 600 million shares of industry held under government obligation.
“The conflict in the Middle East that began on February 28, 2026 has disrupted the flow of oil through the Strait of Hormuz, with export volumes of crude and refined products currently below 10 percent of pre-conflict levels,” the IEA said in a release.
“This is forcing operators across the region to shut down or curtail substantial production.”
Earlier on Wednesday, a spokesman for Iran’s military warned that the global price of oil could reach US$200 per barrel as the conflict wages.
Oil prices reached around $120 a barrel on Monday before cooling slightly. According to the publication, the price was just under $90, up from about $64 in the days before the conflict began.
On Monday, Finance Minister François-Philippe Champagne told reporters there would be “more consultation” before taking action to calm oil market concerns, including releasing strategic oil reserves.
“It’s very volatile,” he said. “I mean, we’re all just making sure there’s enough stock to meet the demand.”
The IEA said in a statement that it would “continue to closely monitor global oil and gas markets” and make further recommendations to governments at its agency as needed.
© 2026 Global News, a division of Corus Entertainment Inc.
(tags to translate)Iran
