Western economies rush to stabilize markets as Brent crude spikes and Gulf tensions threaten global supply
WEB DESK: Finance ministers from the Group of Seven are scheduled to hold an emergency virtual summit Monday to discuss a coordinated release of strategic oil reserves as global energy prices spike amid escalating tensions in the Gulf.
According to the Financial Times, the ministers will join a high-level conference call at 13:30 GMT alongside Fatih Birol, head of the International Energy Agency. The urgent talks reflect growing alarm among Western economies that persistent energy inflation could weaken global economic recovery.
The move comes after Brent crude surged up to 24 percent, reaching $116.71 per barrel in Asian trading. Markets reacted sharply to reports of major supply disruptions in the Gulf, including the effective closure of the Strait of Hormuz, a vital passage that carries roughly one-fifth of the world’s oil shipments.
Officials are expected to debate releasing between 300 million and 400 million barrels from emergency reserves held by the 32 IEA member states about 25–30% of their combined strategic stockpiles.
The possibility of a coordinated release has already eased some market pressure, though volatility remains high. Analysts warn that failure to stabilize energy prices could accelerate global inflation and hit major importers such as the United Kingdom, Germany, and Japan.
France, which currently holds the rotating G7 presidency, expedited the emergency call as conditions in the Gulf continue to deteriorate.
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