IEA nations have released 325 million barrels as diesel shortages bite

At a virtual meeting of Group of Seven leaders, the International Energy Agency’s executive director, Fatih Birol, said “the energy market impacts of the Strait of Hormuz crisis remained acute, especially in diesel markets.”

European diesel futures nevertheless fell more than 7 percent. Brent crude fell 1.1 percent to $101.20 a barrel, while US WTI crude dropped 2.3 percent to $90.70. In the US, low-sulfur diesel fell 3.7 percent to $4.47 a gallon.

The International Energy Agency’s member nations have released around 325 million barrels of oil and oil products from emergency reserves. That is over 80 percent of a 400 million-barrel commitment, leaving roughly 75 million barrels still outstanding.

On 11 March, the IEA’s 32 members unanimously agreed to make 400 million barrels available to the market after US and Israeli military action against Iran triggered supply disruptions. The commitment was the largest coordinated release in the agency’s history.

The G7, consulting with the IEA, also agreed to release 100 million barrels of diesel and crude oil over the next four months. The plan puts a substantial quantity of diesel into the market during the first 20 days, aiming to ease fears of fuel shortages and price pressure.

Supply pressure has been concentrated in refined fuels. Net exports of diesel and gasoil from the Gulf and Russia have decreased by a combined 1.6 million barrels per day. The IEA said exports of refined petroleum products and LPG from the Gulf region in August 2026 were about 60 percent lower than in February.

The security risk in the Strait of Hormuz has continued. On 1 October, the UK Maritime Trade Authority said an oil tanker had been struck by an unidentified object while transiting the waterway, causing a fire.

US Treasury Secretary Scott Bessent said Iran “would have no oil shipments at sea that week and would have no associated revenues” as Washington intensified what he described as an unprecedented campaign to isolate Tehran economically.

Iran’s rial has fallen to record lows, with the euro crossing 3 million rials for the first time. The currency also fell past 2.5 million to the dollar.

At an exchange rate of 2.5 million rials to the dollar, Iran’s minimum monthly wage of 166 million rials is worth about $66.