Leaders of the Group of Seven nations signaled readiness to take action to stabilize global energy supplies after the United States–Israel war with Iran sent oil prices sharply higher and rattled financial markets worldwide.
Finance ministers from the G7 and officials from the International Energy Agency held a virtual meeting to assess the impact of the conflict, which has disrupted energy infrastructure and halted major shipping routes through the Persian Gulf.
While ministers discussed the possible release of emergency crude reserves, the meeting concluded without a final decision on deploying stockpiles.
Officials said they would continue monitoring energy markets closely as the conflict intensifies and supply risks grow.
The surge in prices followed a sharp escalation in military strikes over the weekend.
The United States and Israel launched waves of airstrikes targeting locations across Iran, including oil depots near Tehran.
Iran responded by targeting energy infrastructure across the Gulf region, while Saudi Arabia reported intercepting drones headed toward a major oilfield.
These developments have heightened fears of prolonged disruptions to energy supplies.
Traffic through the Strait of Hormuz, a narrow passage through which about one fifth of the world’s oil typically moves, has largely halted since the fighting began more than a week ago.
Brent crude briefly jumped to about $119.50 a barrel in early Monday trading before retreating below $100 later in the day.
Gas prices also surged, with UK month-ahead gas prices jumping sharply at the start of trading before easing later in the session.
Global markets reacted quickly to the uncertainty surrounding the conflict.
Major Asian stock indexes dropped sharply, including declines of more than five percent in Japan and South Korea.
European markets also slipped, with Germany’s DAX and France’s CAC 40 both closing lower.
Oil companies were among the few gainers as higher prices lifted shares of major energy firms.
The G7 said in a statement, “We stand ready to take necessary measures, including to support global supply of energy such as stockpile release.”
French finance minister Roland Lescure said governments were “not there yet” in deciding whether to release emergency reserves.
Analysts warned that the longer the conflict continues, the greater the pressure on global energy markets and inflation.