The Kabul Tribune (KT) — Finance ministers from the Group of Seven are set to hold an emergency meeting Monday to discuss releasing strategic oil reserves following rising crude prices linked to the ongoing conflict involving the United States, Israel and Iran.
International media reported that crude oil benchmark prices surpassed $100 per barrel for the first time since 2022 as tensions in the Middle East intensified.
According to a report by Financial Times, the emergency meeting is being coordinated with the International Energy Agency. Finance ministers from G7 member states are expected to meet via video conference to assess the impact of the Iran-related conflict on the global oil market.
The meeting is scheduled to take place at 8:30 a.m. New York time.
Reports indicate that at least three G7 member countries, including the United States, have supported the release of emergency oil reserves.
These reserves, held by 32 member countries of the International Energy Agency, form part of an emergency system designed to respond to sharp increases in oil prices during global crises.
U.S. officials reportedly believe a coordinated release of between 300 million and 400 million barrels of oil would be appropriate, representing roughly 25% to 35% of the world’s total strategic reserves of about 1.2 billion barrels.
Amid continued violence in the Middle East, Brent crude oil prices reached their highest level in four years early Monday, while Asian stock markets faced selling pressure.
At least five energy facilities in Tehran were reportedly targeted in attacks, and the Kuwait National Petroleum Company announced a precautionary reduction in production following retaliatory strikes by Iran.
The Strait of Hormuz, a key shipping route through which about one-fifth of the world’s seaborne oil and gas passes, has effectively remained closed for a week.
Brent, the international benchmark for oil prices, surged by as much as 29% in early Monday trading to reach $119.50 per barrel. After the G7 meeting was announced, prices eased slightly to $106.73 per barrel, still about 15% higher than before the announcement.
Following attacks on energy facilities, a spokesman for the Islamic Revolutionary Guard Corps warned, “If you can tolerate oil prices above $200, continue this game.”
The global emergency oil reserve system was established in 1974 as part of the creation of the International Energy Agency after the Arab oil embargo. Since then, coordinated releases from the reserves have occurred five times, including two recent releases in response to Russia’s invasion of Ukraine.
