Germany Releases Part of Oil Reserves Amid Iran Conflict to Stabilize Energy Prices

In response to significant increases in oil and fuel prices triggered by the ongoing conflict in Iran, Germany has announced the release of a portion of its national oil reserves. Federal Minister for Economic Affairs Katherina Reiche (CDU) confirmed the measure on March 11, 2026, which aims to alleviate market tensions and stabilize prices. This coordinated action follows discussions among G7 energy ministers and is supported by the International Energy Agency (IEA), which is orchestrating an extensive release of emergency reserves across member countries.

Germany's strategic oil reserves totaled approximately 34.42 million tons as of November last year, primarily consisting of crude oil stored mainly in Northern Germany. The IEA has proposed releasing up to 400 million barrels of crude oil from member nations to counteract supply uncertainties, a figure that significantly exceeds the previous maximum release of 182 million barrels during the Ukraine war. From this total, around 19.5 million barrels are expected to come from Germany — roughly one-fifth of its reserves.

The surge in global oil prices, including Brent crude reaching $92.31 per barrel, is driven by concerns over supply disruptions in the Hormuz Strait, a critical maritime route for oil exports. Recent incidents such as the laying of mines and an attack on a commercial vessel near the Strait's entrance have heightened security fears, escalating energy market volatility.

To further protect consumers, the German government plans to limit fuel price increases at gas stations to once per day. This regulation responds to public dissatisfaction over the rapid and opaque price adjustments previously observed. Economic experts, including Monika Schnitzer, Chairwoman of the Council of Economic Experts, have endorsed the strategic release of reserves. She emphasized that these oil stocks were designed for crisis intervention and are intended to ease short-term price spikes rather than counter prolonged price trends.

Since its establishment in 1974, the IEA has coordinated five major releases of oil reserves during times of geopolitical crisis, underscoring the collective effort to ensure energy security. Germany's participation in this latest release highlights the country's commitment to stabilizing the energy market amid the ongoing Middle Eastern turmoil.