The International Energy Agency will release 400 million barrels of oil from its stockpiles to stabilize the market amid the US-Israeli war with Iran, the organization said Wednesday, marking its largest ever release of strategic reserves.

What happened: The Wall Street Journal and Reuters first reported late Tuesday that the IEA was readying to release the reserves, citing officials familiar with the matter. The release would be more than double the Paris-based agency’s previous record drawdown, in which IEA members released 182 million barrels after Russia launched its full-scale invasion of Ukraine in February 2022.

All 32 IEA member countries unanimously voted to release the reserves. The deployment will take place over a timeframe that is appropriate to each member's national circumstances, the IEA said Wednesday, adding that it would provide more details in due course.

Why it matters: The IEA's plan is intended to counter the effects of the near closure of the Strait of Hormuz, a vital chokepoint between Iran and the United Arab Emirates that sees roughly one-fifth of all global oil and liquefied natural gas pass through it.