The Group of Seven (G7) finance ministers will meet on Monday to discuss a global rise in oil prices and a joint release of oil from emergency reserves coordinated by the International Energy Agency, the Financial Times reports.
Three G7 countries, including the U.S., have so far expressed support for the idea, the FT said citing sources, and added that the ministers and the IEA Executive Director Fatih Birol will hold a call to discuss the impact of the Iran war.
The report comes as oil prices surged more than 25% on Monday to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding U.S.-Israeli war with Iran.
The IEA and the G7 presidency did not respond to requests for comment outside regular business hours.
Oil prices have surged while global stock markets have tumbled as fears grow that the escalating U.S.- Israeli war with Iran could disrupt energy supplies and drive up costs worldwide.
Brent crude jumped about 27% to $117.58 a barrel, while U.S. crude rose 28% to $116.51- the highest levels since mid-2022. Analysts warn that a prolonged conflict and disruptions around the Strait of Hormuz could push fuel prices even higher.
Countries heavily reliant on energy imports are taking steps to cushion the economic impact.
South Korea plans to cap domestic fuel prices for the first time in nearly 30 years and search for alternative supply routes beyond shipments through the Strait of Hormuz.
Authorities are also considering expanding a $67 billion market-stabilisation programme.
Japan has instructed a national oil reserve facility to prepare for a possible release of crude oil, although the timing remains unclear.
Vietnam plans to temporarily remove fuel import tariffs until the end of April to ensure stable supplies, while Indonesia will increase fuel subsidies to help keep energy prices affordable.
China has asked refiners to halt signing new fuel export contracts and try to cancel shipments already scheduled.
Bangladesh has also introduced emergency measures, announcing that universities will close from Monday and the Eid al‑Fitr holidays will be brought forward to conserve electricity and fuel.
The spike in oil prices has rattled global markets. Japan’s benchmark Nikkei 225 index fell 7%, extending last week’s losses, while South Korea’s market dropped more than 8%.
China reported consumer prices rose 1.3% in February compared with a year earlier, even before the latest oil surge. While higher inflation could add pressure on households, it may also help counter the country’s prolonged period of weak price growth.
With tensions showing no signs of easing and some tankers avoiding the Strait of Hormuz, investors are bracing for a prolonged period of elevated energy costs.
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