Finance ministers from the Group of Seven are preparing for an emergency meeting to consider releasing strategic oil reserves after escalating conflict between the United States, Israel and Iran pushed global crude prices above $100 a barrel for the first time since 2022.
The discussion, expected to be coordinated by the International Energy Agency, will focus on whether member countries should tap into emergency petroleum reserves to stabilise global energy markets amid fears of supply disruptions.
Reports indicate that at least three G7 nations, including the United States, support a coordinated release of between 300 million and 400 million barrels of oil.
The proposed move would represent roughly a quarter to a third of the 1.2 billion barrels currently held in strategic reserves by the IEA’s 32 member countries.
Oil markets have been rattled by the widening Middle East conflict, which has raised concerns about supply routes through the Strait of Hormuz, a vital corridor that carries about one-fifth of the world’s oil shipments.
Prices for Brent crude briefly surged to nearly $120 a barrel before easing slightly following reports of the planned talks.
The price surge has also unsettled global financial markets, with stock indices across Europe and Asia falling amid fears that prolonged instability could disrupt energy supplies and slow economic growth.
The emergency reserve system managed by the IEA was established in 1974 following the global oil crisis triggered by the Arab oil embargo.
Since then, coordinated releases have been used several times to stabilise markets during major geopolitical crises.
