Oil watchers could soon see a record flood of crude hit the market, the Wall Street Journal reports. The International Energy Agency has proposed its biggest-ever coordinated release of emergency oil reserves to blunt a price spike tied to the US-Israel war with Iran and the near-shutdown of the Strait of Hormuz, through which about 20% of global supply moves. The plan, circulated Tuesday among the IEA's 32 member countries, would top the 182 million barrels released after Russia's 2022 invasion of Ukraine; it takes effect only if no member objects when countries weigh in Wednesday. Sources tell CNBC the US believes 300 million to 400 million barrels should be jointly released, an amount that would represent 25% to 30% of the 1.2 billion barrels held in reserve by the member nations, which are mostly located in North America, Europe, and Northeast Asia.
Oil, which briefly topped $100 a barrel after strikes on Iran began Feb. 28, ended Tuesday under $84, but fuel prices remain elevated and economists warn a lasting surge could feed inflation and rattle markets. Oil prices dropped a bit more Wednesday following the Journal's report, per Reuters.