Amid the closure of the critical Strait of Hormuz due to the ongoing conflict in the Middle East, the global community is tapping into its oil reserves to address the supply disruptions.
The International Energy Agency (IEA) announced on Wednesday its decision to release 400 million barrels from its emergency reserves, marking the largest release in its history, to alleviate the unprecedented disruption in the market.
Canada, as the lone G7 nation without a strategic reserve, faces scrutiny over its lack of oil reserves. While Natural Resources Minister Tim Hodgson pledged Canada’s support in contributing to the global oil supply, Conservative Party Leader Pierre Poilievre criticized the government for not maintaining any reserves.
During a heated exchange with the prime minister, Poilievre pointed out that Canada’s oil stockpiles are non-existent.
So, why does Canada not have a strategic reserve, and how can the country assist in boosting the global supply? Here is what you should know.
Oil and gas prices are rapidly rising around the world amid the U.S.-Israel war with Iran. Andrew Chang explains what’s driving the surge and why predicting the next moves in the oil market is so difficult.
CORRECTION (March 11, 2026): At 2:36 in this video, the graphic incorrectly states Iran holds 298 billion barrels of oil reserves. The correct number is 209 billion.
Images provided by The Canadian Press, Reuters and Getty Images.
Reason Behind Lack of Reserve in Canada
Canada is a member of the IEA, which was established in 1974 to coordinate a global response to energy crises, originating from the Arab oil embargo at that time.
The IEA member countries collectively hold over 1.2 billion barrels of public emergency oil stocks, with an additional 600 million barrels of industry stocks under government obligation.
While the IEA mandates that members maintain oil reserves equivalent to 90 days of net imports, Canada is exempt from this requirement due to its status as a net exporter.
Despite being a net exporter like the U.S., Canada does not possess a strategic reserve. The U.S. is set to release approximately 174 million barrels from its reserves starting next week.
While most of Canada’s oil is directed to the U.S., a portion from the Trans Mountain pipeline also serves Asian markets, which are significantly impacted by the closure of the Strait of Hormuz.
Actions Canada Can Take
Canadian industry analyst Rory Johnston of Commodity Context notes that while utilizing global reserves can alleviate the supply constraints slightly, it falls short of compensating for