Governments moved in a coordinated way Wednesday to blunt rising oil and fuel prices after attacks on Iran and escalating conflict in the Gulf pushed crude higher.
The International Energy Agency asked member countries to free up a total of 400 million barrels from national strategic reserves. IEA Executive Director Fatih Birol called the collective response “unprecedented in size,” saying the scale of the market shock required an unusually large, coordinated release.
Germany confirmed it will participate. Economy Minister Katherina Reiche said Germany will contribute roughly 2.4 million metric tons of oil, noting there was no immediate domestic shortage but that releases were warranted because supply disruptions are occurring elsewhere. Finance Minister Lars Klingbeil had signaled openness to tapping reserves the day before.
Other governments acted quickly as well. Austria said it would limit fuel-station price increases to once per day and join international plans to release stockpiles. Japan’s prime minister, Sanae Takaichi, said Tokyo would not wait for a formal IEA decision and planned to begin releasing strategic reserves as early as March 16. French Economy Minister Roland Lescure described the measures as part of an “extremely coordinated approach,” and Spain’s energy minister noted the IEA-recommended release would be more than twice the size of the 2022 coordinated release after Russia’s full-scale invasion of Ukraine.
After G7 ministers met Tuesday, the IEA was asked to weigh the benefits and downsides of reserve releases and advise EU and allied governments. Reuters reported IEA sources saying an initial tranche of about 100 million barrels could be released as part of the broader 400 million-barrel plan.
Oil prices jumped after the attacks and shipping disruptions around the Strait of Hormuz. Prices briefly topped $100 per barrel early Monday and were near $90 a barrel for Brent crude on Wednesday, up from roughly $68 a month earlier. Pump prices at filling stations have risen in many countries.
In addition to tapping reserves, Germany plans to follow an “Austrian model” to limit how often petrol stations can raise prices, allowing only one increase per day while placing no limit on how often prices can be lowered. Reiche said the measure is intended to prevent a “rocket and feather” pattern: fast rises when crude spikes and slow falls when it drops. Implementing the cap will require changes to cartel law; the government said it will seek an existing legislative vehicle to speed the process but gave no firm timeline.
Germany’s strategic reserves are managed by the Petroleum Stockpiling Association under the Federal Ministry for Economic Affairs and Energy. By law, Germany must hold reserves equal to 90 days of net oil imports, and any sales must be made at market prices. Legal rules allow releases to address disruptions to physical supply; using reserves primarily to push down prices is not permitted.
For context, 183 million barrels were released from national reserves in two tranches after Russia’s 2022 invasion of Ukraine, with Germany contributing almost 6.5 million barrels. The current coordinated move aims to ease immediate pressure on supply and limit further price shocks as tensions in the region continue.