SEATTLE (Oil Monster): Finance ministers from the Group of Seven (G7) are set to hold an emergency meeting to discuss a potential coordinated release of oil reserves as global crude prices surge following tensions linked to the Iran conflict.
The virtual meeting will include ministers from G7 economies and Fatih Birol, executive director of the International Energy Agency (IEA). Officials are expected to examine whether a joint release from strategic petroleum reserves could help stabilize volatile energy markets.
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According to sources familiar with the discussions, at least three G7 countries, including the United States, have expressed support for the proposal. Some U.S. officials believe a coordinated release of 300 million to 400 million barrels could help ease supply concerns.
Oil markets have reacted sharply to the geopolitical tensions. Brent crude surged more than 20% during Asian trading before settling around $110 per barrel, while West Texas Intermediate also posted significant gains.
Strategic petroleum reserves held by the IEA’s 32 member nations were created after the 1973 Arab oil embargo to help countries respond to supply disruptions and price shocks.
Analysts say a coordinated release could help curb inflationary pressures and stabilize energy markets as governments seek to prevent the oil price spike from slowing global economic growth.
