G7 nations have announced their support for a coordinated release of oil from strategic reserves in an effort to combat rapidly increasing global prices. The International Energy Agency (IEA) is reportedly preparing its most substantial intervention in the oil market to date.
The conflict has led to a near-halt in oil exports through the critical Strait of Hormuz, impacting regional production and driving up prices. While experts caution that releasing reserves offers only a short-term solution, the IEA could potentially release between 300 to 400 million barrels, more than double the amount released following Russia's invasion of Ukraine.
G7 energy ministers stated, "In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves." IEA member countries are mandated to maintain 90 days of oil usage in reserve for global disruptions. However, analysts note a shortage in refining capacity, complicating the immediate impact of released stocks.