Finance ministers from the Group of Seven (G7) will discuss the possible release of strategic oil reserves as global energy markets react to the escalating crisis in the Middle East.
The move aims to stabilise oil prices after markets reacted to supply fears linked to the conflict involving Iran, Israel, and the United States.
Strategic Oil Release Under Consideration
A source in the French government said G7 finance ministers will consider releasing emergency oil reserves during their meeting on Monday.
The ministers will examine the economic impact of the crisis in the Gulf region. They will also review recent developments affecting global energy supply.
Officials scheduled the meeting for 1:30 pm Paris time. Ministers will assess the situation in the Gulf and its effect on energy markets.
IEA May Coordinate Joint Oil Release
The Financial Times reported that G7 ministers are considering a coordinated release of strategic oil reserves through the International Energy Agency.
Several countries could release emergency crude supplies into the market. This move could help reduce shortages and ease rising oil prices.
The report added that three G7 members, including the United States, have already backed the proposal.
France Holds Current G7 Presidency
France currently holds the rotating presidency of the G7.
The group includes some of the world’s largest advanced economies:
- Canada
- Germany
- Italy
- Japan
- United Kingdom
- United States
These countries often coordinate global economic and energy policy responses.
Oil Prices Surge as Middle East Tensions Rise
Global markets reacted quickly to the rising tensions in the Middle East.
Asian stock markets fell sharply on Monday. At the same time, oil prices jumped by as much as 30 percent because traders feared disruptions to regional oil supplies.
However, prices eased slightly after reports suggested the G7 could release emergency reserves.
Trump Says Oil Price Rise Is Temporary
Donald Trump said the increase in oil prices is a “small price to pay” to address Iran’s nuclear threat.
The US president added that the rise in oil prices will likely be temporary despite the ongoing conflict.
Strategic Oil Reserves Created After 1973 Crisis
The International Energy Agency was created after the 1973 oil crisis.
The agency coordinates responses to global oil supply disruptions.
To strengthen energy security, the IEA requires member countries to hold emergency oil stocks equal to at least 90 days of net oil imports.
Governments or private companies usually store these reserves under national regulations.
