The International Energy Agency is proposing that its member governments jointly release up to 400 million barrels of oil from strategic stockpiles after the Iran war set off a chaotic spike in crude prices.Why it matters: It would be the largest joint release in the history of IEA, which coordinates members' emergency responses to oil shocks. The effort is the most aggressive energy policy response yet to the conflict that's bottling up massive volumes as transit through the Strait of Hormuz off Iran remains largely frozen. "The conflict in the Middle East is having significant impacts on global oil and gas markets, with major implications for energy security, energy affordability and the global economy," IEA executive director Fatih Birol said in a briefing from the agency's Paris headquarters on Wednesday.Driving the news: The narrow waterway off Iran is a critical trade artery that roughly a quarter of the world's seaborne oil supply passes through, but is now too risky for nearly all journeys.That de facto closure is also causing spillover effects, with some Gulf region countries dialing back oil production as storage space gets tight. Oil prices soared to more than $100 per barrel earlier this week before easing as President Trump signaled the war was nearing its close (though his administration has delivered mixed messages since).Catch up quick: Prime Minister Sanae Takaichi said Japan would take the lead and release oil from its national reserves as early as next week," the FT reported ahead of the IEA announcement.The outlet also reported that Germany would comply with the request to release from their reserves.It will be the first coordinated IEA release since 2022 in the wake of Russia's invasion of Ukraine. What they're saying: "The strategic reserves are not a permanent solution, of course, and crude oil will continue to trade like a 'meme stock' until the solution is peace," investment and advisory firm Macquarie said in a note ahead of the announcement.What we're watching: The rate at which barrels are released from members' stockpiles — and whether the release will include oil from the U.S. Strategic Petroleum Reserve.Democrats have urged the administration to release oil from the reserve, but Trump has been reluctant to do so.