Germany and Japan announced Wednesday, March 11, 2026, they will release portions of their strategic oil reserves in an effort to counter rising fuel prices spurred by escalating conflict in the Middle East. The move comes as concerns grow over potential disruptions to global energy supplies due to tensions in a critical shipping lane.
The price of West Texas Intermediate (WTI) crude oil reached approximately $88 a barrel on Wednesday, a nearly 6% increase, while Brent crude from the North Sea traded at just over $92 a barrel, up 5%.
Japan is taking the lead, with Prime Minister Sanae Takaichi stating the country decided to “alleviate the supply and demand in the international energy market” by releasing its strategic reserves starting March 16. “Without waiting for an official decision from the IEA [International Energy Agency] on a coordinated release of international reserves, Japan decided to take the initiative,” Takaichi told reporters.
Germany is as well responding to a request from the International Energy Agency (IEA) to mitigate the impact of the conflict with Iran on global energy prices, according to German Economy Minister Katherina Reiche. The announcement could influence future diplomatic talks as nations seek to stabilize energy markets.
Both Germany and Japan are members of the G7, and heads of state and government from the forum are scheduled to discuss energy reserves in a videoconference on Wednesday. G7 energy ministers affirmed they are “prepared” to take “all necessary measures” amid significant instability in oil prices.
The IEA has proposed tapping into the strategic petroleum reserves of its members in an unprecedented move to curb price increases, according to the Wall Street Journal. The development underscores growing regional tensions and the potential for wider economic repercussions.
