G7 Prepares for Energy Support Amid Iran Conflict

G7 nations have prepared to take measures to support global energy supply after the oil price surge triggered by the US-Israel war with Iran. However, a meeting of G7 finance ministers and the International Energy Agency (IEA) ended without an agreement to release strategic crude reserves.

At the virtual meeting, releasing oil from stockpiles was one of several options discussed. In a statement following the meeting, the G7 said they stand ready to take necessary measures, including supporting global energy supply and potentially releasing stockpiles.

Head of the IEA, Fatih Birol, stated that global oil markets have deteriorated in recent days due to challenges in transit through the Strait of Hormuz and a substantial amount of oil production being curtailed. This has created significant and growing risk for the market.