G7 Ministers Explore Tapping Emergency Oil Reserves as Prices Hit USD 100 Amid Iran-Israel Escalation

Group of Seven finance ministers were set to discuss using emergency oil reserves after crude oil prices crossed $100. The talks followed renewed Iran-Israel conflict escalation 2026 and rising supply fears. A Financial Times report said the International Energy Agency organised the call for 8:30am New York time.

Brent Crude moved sharply on Monday as traders priced disruption risks. The global benchmark rose up to 29% to $119.50 in early trade. It later eased near $106.73. Even after the pullback, prices stayed about 15% higher on the day.

People familiar with the planning said at least three G7 members backed tapping emergency oil reserves. The United States was among those supporters. US officials reportedly judged that a release of 300 million to 400 million barrels could calm markets. That equals about 25% to 35% of the IEA system’s 1.2 billion barrels.

The IEA set up its emergency oil reserves framework in 1974 after the 1973 Oil Crisis. The Arab oil embargo then caused shortages and price spikes in Western economies. Since its creation, the agency coordinated five collective releases. Two were recent drawdowns after Russia invaded Ukraine in 2022.

Supply risks linked to emergency oil reserves and Middle East infrastructure

Pressure on supply routes and facilities added to the price jump. Reports said at least five energy sites near Tehran were struck during the escalation. Kuwait’s national oil company also announced a precautionary production cut. The Strait of Hormuz remained effectively closed for about a week, and it carries around one-fifth of global oil and seaborne gas.

European Union officials said the bloc’s oil and gas supply coordination groups would meet later this week. The groups were expected to review the conflict’s effect on regional flows. EU rules require member states to hold emergency oil reserves equal to at least 90 days of consumption. These safeguards may shape any wider response.

US President Donald Trump said the rise in crude prices was "a very small price to pay" for global security and peace. Iranian officials offered a different warning on price risks. A spokesperson for the Islamic Revolutionary Guard Corps said oil could exceed $200 a barrel if fighting widens. These comments added to market sensitivity.

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