Spanish Energy Minister Sara Ajisson announced on Tuesday that the government has approved an emergency plan to release up to 11.5 million barrels of oil reserves . This decision, to be implemented over 90 days, is a crucial step to address global supply shortages caused by geopolitical tensions and the closure of the Strait of Hormuz . Ajisson explained that the release is fully aligned with the International Energy Agency's coordinated plans, which aim to free up approximately 400 million barrels globally. The first phase of the Spanish plan will begin within 15 days.
According to official data from the International Energy Agency, the 38 member countries of the OECD (Organisation for Economic Co-operation and Development) hold at least 1.2 billion barrels of crude oil carefully stored in public strategic reserves. This strategic mechanism was established in the 1970s following the infamous 1973 oil crisis, with the aim of protecting major economies from sudden shocks in energy markets and ensuring the continued flow of vital supplies during times of war and major crises.
The importance of resorting to oil reserves in light of current tensions
The importance of tapping into oil reserves at this critical juncture lies in mitigating the severe economic repercussions that could impact local and global markets. Domestically and regionally, within Europe, Spain aims to curb inflation and prevent a sharp rise in fuel prices that burdens citizens and industrial sectors. Internationally, coordinated action among major consuming nations sends a reassuring message to financial markets and contributes to achieving a relative balance between supply and demand, thus reducing the price volatility that threatens global economic growth.
A global race to draw on strategic reserves
Spain was not alone in this move. Last Wednesday, US President Donald Trump announced he would tap into the Strategic Petroleum Reserve to help lower energy costs during the period of military tensions with Iran. Strategic Petroleum Reserve currently holds approximately 415 million barrels of oil, representing 58% of its authorized storage capacity of 714 million barrels. This reserve is the largest of its kind in the world and is used as a key tool to stabilize markets during major crises that disrupt supply chains.
Asian moves to secure energy
In a similar move reflecting the scale of global concern, Japan began releasing massive amounts from its strategic reserves on Monday to mitigate the economic impact of conflicts in the Middle East. With gasoline prices soaring across Japan due to supply disruptions from the Strait of Hormuz in the Persian Gulf, Tokyo pledged to release a record 80 million barrels. This amount is sufficient to cover the needs of the oil-poor nation, which relies almost entirely on imports, for approximately 45 days. These coordinated actions by major economic powers underscore that energy security remains the primary concern driving international policy during times of geopolitical crisis.
