Leaders from the Group of Seven have said they are prepared to take necessary measures to support global energy supplies following the sharp rise in oil prices triggered by the conflict involving Iran, Israel and the United States.
Finance ministers from G7 nations held a virtual meeting with the International Energy Agency to discuss the situation. Although the release of emergency oil reserves was considered, no final agreement was reached.
Global oil prices briefly surged close to 120 dollars per barrel amid fears of prolonged supply disruptions before falling back after comments from US President Donald Trump suggested the conflict could end soon.
IEA Executive Director Fatih Birol warned that global oil markets have deteriorated in recent days. He said production disruptions and difficulties transporting oil through the Strait of Hormuz have increased risks to the global energy market.
Birol noted that IEA member countries currently hold more than 1.2 billion barrels of public emergency oil stocks, along with an additional 600 million barrels maintained by industry under government obligations.
After the meeting, French Finance Minister Roland Lescure said it was still too early to decide whether strategic reserves would be released.
Meanwhile, UK Chancellor Rachel Reeves said the United Kingdom had called for immediate de escalation in the Middle East and emphasised the importance of ensuring safe passage for ships in the region.
About one fifth of the world’s oil supply normally passes through the Strait of Hormuz, but shipping through the narrow waterway has been severely disrupted since the conflict began.
Analysts warn that continued disruptions to energy supplies could push up fuel and commodity prices globally, increasing inflationary pressures and potentially affecting interest rate decisions by central banks.
