March 12, 2026 — The U.S.-Israeli war with Iran has triggered the largest oil supply disruption in history, shutting down tanker traffic through the Strait of Hormuz and halting roughly 20% of global crude and natural gas supplies for nearly two weeks. Oil prices have surged from under $70 per barrel in February to peaks near $120 before settling around $90–$100, threatening prolonged inflation, higher fuel costs worldwide, and economic shocks from Asia to Europe.
The crisis has forced an unprecedented global response. On March 11, the International Energy Agency (IEA) announced its 32 member countries would release a record 400 million barrels of emergency oil stocks — the largest coordinated drawdown in the organisation’s history — to ease market panic. The United States alone plans to contribute 172 million barrels from its Strategic Petroleum Reserve (SPR).
Which country has the maximum emergency oil reserves?
The United States holds the world’s largest government-controlled emergency oil stockpile. As of early March 2026, the U.S. SPR contains approximately 415.4 million barrels of crude oil stored in underground salt caverns along the Gulf Coast. This is more than double Japan’s government-held reserves and far exceeds other major economies. The U.S. total capacity stands at 714 million barrels, though current inventory is lower following past drawdowns.
For comparison:
- Japan: ~260 million barrels in government reserves (total oil-equivalent stocks reach ~470 million barrels, offering up to 146–230 days of cover).
- China (non-IEA member): Estimated 400–500 million barrels, though official transparency is limited.
- Germany: ~110 million barrels crude + 67 million barrels of products.
- France: ~120 million barrels equivalent.
IEA members collectively control over 1.2 billion barrels of public emergency stocks plus 600 million barrels of obligated industry stocks, but the U.S. single-country SPR remains the largest and most potent buffer.
Where does India stand?
India, the world’s third-largest oil importer and consumer, maintains a far more modest strategic petroleum reserve (SPR). Operated by Indian Strategic Petroleum Reserves Ltd (ISPRL), the facilities at Visakhapatnam, Mangalore, and Padur have a combined capacity of 5.33 million metric tonnes — roughly equivalent to 39 million barrels of crude. The government has confirmed this currently provides about 9 days of supply cover at current consumption levels (around 5.2–5.5 million barrels per day).
India is not participating in the IEA’s record release, with officials stating commercial inventories remain adequate and alternative supply routes are being secured. The country is expanding its SPR to 11.83 million metric tonnes (adding caverns at Chandikhole and Padur), which would eventually raise cover to around 20–25 days, but the project is still under construction.
Analysts note that while India’s reserves offer a short-term cushion against the Iran war shock, the country remains highly vulnerable to prolonged disruptions given its heavy reliance on Middle Eastern imports. The government is exploring diversified sourcing from the U.S., Russia, and Latin America, alongside accelerated strategic storage plans.
As the conflict enters its second week and the IEA’s historic release begins flowing into markets, experts warn that full recovery of Hormuz shipments could take months even if fighting stops. For now, the United States’ massive SPR gives Washington the strongest leverage to stabilise global energy markets — a safety net India is still working to strengthen.
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