The Group of Seven (G7) countries have agreed they are prepared to use all available tools to stabilize the global energy market amid a sharp oil price surge caused by the war in the Middle East. For now, no decision has been made to release strategic crude oil reserves. This agreement emerged from a virtual meeting held by the finance ministers of the United States, Japan, Canada, the United Kingdom, France, Germany, and Italy, who analyzed the international energy crisis generated by the military escalation between the US, Israel, and Iran.
"We are not at that stage yet," stated French Finance Minister Roland Lescure, though he emphasized that G7 nations will continue to monitor energy market developments closely and are ready to act if the crisis deepens. Lescure explained that the group agreed to keep all options on the table if the energy market remains tense.
"We have agreed to use any necessary tool to stabilize the market, including the possible release of strategic reserves if necessary," noted French President Emmanuel Macron during an official trip to Cyprus. However, he stressed that the priority is to prevent a major escalation of the conflict and restore normality to the maritime routes in the Persian Gulf.
The primary factor behind the energy tension is the situation in the Strait of Hormuz, one of the world's most important maritime corridors for hydrocarbon trade. Approximately 20% of the world's oil and a significant portion of liquefied natural gas (LNG) transit through this route. The partial blockade of this strategic passage, resulting from military operations and regional insecurity, has triggered alarms in international energy markets.
In Washington, US Treasury Secretary Scott Bessent suggested another potential avenue to increase global energy supply: reviewing or relaxing certain sanctions affecting Russian oil to boost crude availability in the international market. Meanwhile, the international Brent benchmark surged by over 30% in Asian markets, approaching $120 a barrel, a level not seen since the global energy crisis of 2022.
The oil rally immediately impacted international financial markets, causing stock drops in Europe and Asia, and reignited fears of a new global inflationary cycle. Markets reacted with some moderation once the G7's willingness to intervene if necessary became public. The prospect of a reserve release helped partially halt the crude's upward trend, although the market remains highly sensitive to any conflict-related developments.
In Europe, the European Commission moved to calm the market by assuring there is no immediate risk of oil shortages on the continent. A spokesperson for the bloc explained that all EU member states are required to maintain emergency reserves equivalent to 90 days of consumption, providing a significant buffer. The Commission also noted that no European country has notified the release of its strategic reserves so far, confirming that authorities still believe the situation can be managed without triggering that mechanism.
Nevertheless, several European governments are closely watching the decisions made by the United States, whose weight in the global energy market often proves decisive during crises.
