G7 energy ministers announced Wednesday they are ready to implement "all necessary measures" in coordination with the International Energy Agency (IEA) to combat rising crude oil prices. The potential move follows reports of the IEA proposing its largest-ever release of oil reserves to counter volatility driven by the US-Israeli conflict with Iran.
Following discussions with the IEA's executive director, G7 members stated they would "carefully consider the recommendations" and "support the implementation of proactive measures, including the use of strategic reserves." The ministers emphasized ongoing coordination within the G7, with IEA member countries, and internationally.
Asian equities saw gains while oil prices stabilized after news of the potential reserve release. The crude market has experienced significant volatility since the US and Israel began strikes against Iran, which has retaliated by targeting operations in the Gulf and impacting the Strait of Hormuz.
IEA member nations collectively hold over 1.2 billion barrels of public emergency oil stocks, in addition to 600 million barrels of industry stocks. The IEA, established after the 1973 oil crisis, mandates member countries maintain emergency oil stocks equivalent to at least 90 days of net oil imports to ensure energy security.