According to a report by The Wall Street Journal, the agency has proposed what could become the largest coordinated release of oil reserves in its history to help cool prices that recently surged amid the escalating conflict involving the United States, Israel and Iran.
The prospect of additional supply entering the market weighed slightly on benchmark crude prices in early trading.
Brent crude futures slipped by 23 cents, or 0.26 percent, to $87.57 per barrel as of 0023 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude declined by 37 cents, or 0.44 percent, to trade at $83.08 per barrel.
The move comes after oil prices surged earlier in the week, briefly touching $100 per barrel, their highest level since mid-2022, as investors reacted to fears that the Middle East tensions could disrupt global oil supply.
Analysts say a coordinated release from emergency reserves by IEA member countries could help ease supply concerns and reduce volatility in energy markets if implemented. However, market sentiment remains sensitive to developments in the conflict and potential impacts on major oil shipping routes and production in the region.