The International Energy Agency has proposed the largest release of oil reserves in its history to restrain soaring crude prices ​amid the US-Israel war with Iran, the Wall Street Journal reported on March 10.

The release would be more than the previous 182mn barrels put on the market in two tranches in 2022 during the last energy crisis following Russia’s invasion of Ukraine.

Markets were suffering from whiplash after oil prices rose to $120 per barrel on March 9 as the global energy crisis gathered momentum, only to fall back to $85 again by the end of the day after Trump said the war was “pretty much over.”

US crude and Brent crude futures immediately dropped further following the Wall Street Journal report. As bne IntelliNews went to press on the morning of March 11 Brent was trading at $87.5, however, the Russian Ural’s blend is still enjoying a premium and trading at $100.7 as it is one of the few producers that is physically unaffected by the war in Iran.

Several major developed countries have begun to talk about releasing some oil from their strategic reserves. Japan, which has the second largest reserves in the world after the US, has indicated it will release some oil in order to calm markets. The EU has also indicated it will dip into its reserves in order to calm markets and avoid an inflation shock in a repeat of the 2022 energy crisis.

Now the IEA has thrown its hat in the ring and called for all countries to release oil onto the market at a meeting of members on March 10. The plan would be adopted if there ​were no objections, it said, but protests by even one country could delay the ​effort, Reuters reports. At the end of the meeting the G7 energy ministers stopped short of agreeing on a release of strategic oil reserves, asking the IEA to assess the situation instead.

"Although no country currently faces a physical shortage of crude, ​prices are rising sharply, and leaving the situation unattended is not an option," a ​G7 source told Reuters. "G7 countries are generally supportive of an IEA coordinated oil stock release," the ‌source ⁠added, speaking on condition of anonymity.

The sources said that talks have already extended beyond the IEA and G7 members and may extend ​to non-IEA members ⁠like China and India, both major consumers of oil and gas. The US has already eased sanctions on Russian oil exports to boost supplies to India by granting it a 30-day waiver on a ban on importing Russian oil.

IEA member South Korea is ​participating in the discussion "and reviewing its position," a spokesperson for ​the country's ⁠industry ministry said Reuters reports.

Persian Gulf producers have so far shaved about 6% of global oil output, sending prices of oil products across the board soaring. And as Gulf producers storage space runs out in the next two weeks more major companies will have to cut production.

Hundreds of ships remained stuck in the Straits of Hormuz unable to reach international markets. Earlier president Trump suggested that he would order the US Navy to escort tankers through the streets. However however the Wall Street Journal also reports that the US Navy is turning down daily requests from shipping companies as the passage is too dangerous.

Only 34 kilometers wide at its narrowest point, traversing the straits would put US warships in easy range of Iran's extensive missile and drone arsenal. Despite carrying some of the most sophisticated and powerful weapons in the world, the ship's defenses would likely be overwhelmed by the sheer number of a drone swarm and suffer severe damage. At the same time, while the warships have sophisticated radar they are unable to detect a mine placed only three meters believe below sea level which could also disable the multibillion dollar warships.