G7 pledges action on surging oil prices, stop short of releasing emergency reserves
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The news: G7 finance ministers met virtually on Monday and pledged “necessary measures” on oil but stopped short of an immediate reserve release, even as oil prices hit their highest level since 2022.
What they said: In a joint statement cited by media, ministers said they “stand ready to take necessary measures, including to support global supply of energy such as stockpile release.”
But speaking to reporters in Brussels after the meeting, French finance minister Roland Lescure said: “We are not there yet.”
The decision was effectively deferred to a separate G7 energy ministers’ meeting on Tuesday, where “action would be decided,” a person familiar with the talks told the Financial Times. A US official also told the paper there were grounds for optimism that action could be taken soon after.
The numbers: Brent crude surged as high as USD119 a barrel before retreating to just above USD100, still up nearly 40% since the war began.
The context: Meanwhile, IEA head Fatih Birol warned of “significant and growing risks for the market,” while EU economy commissioner Valdis Dombrovskis, speaking in Brussels ahead of a eurozone finance ministers’ meeting, cautioned the conflict could deliver “substantial stagflationary shocks on the global and European economy” if prolonged.
On the ground, Israel launched simultaneous strikes across Tehran, Isfahan and southern Iran, while Iran attacked Gulf neighbours, injuring 32 civilians in Bahrain and forcing Bapco to declare force majeure on its refinery. Also, NATO shot down a second Iranian ballistic missile over Turkish airspace.
The sources: IEA, Bloomberg, Reuters, Financial Times
