Article written by Matty Reiss, March 10th

The G7 Oil Conference

Finance ministers from the world's seven largest economies convened in an emergency virtual meeting on Monday to weigh a coordinated release of strategic oil reserves as crude prices rocketed above $100 per barrel in the wake of the escalating war with Iran, now entering its tenth day.

Oil Markets in Turmoil

Brent crude surged to a high of $119.50 per barrel in early Monday trading, a level not seen since mid-2022, before pulling back to around $106 per barrel, still more than 14% above Friday's close. West Texas Intermediate made similarly dramatic moves, briefly trading above $119.48 before retreating. The spike was driven by fears over supply disruptions through the Strait of Hormuz, which Iran has closed, choking off a corridor through which approximately 15 million barrels of crude, roughly 20% of the world's daily oil supply. The situation was further aggravated by escalating attacks on oil fields, refineries, and storage facilities across Gulf countries, undermining those nations' ability to produce, store, and export petroleum products. Iraq's oil output has plunged by 70% amid the crisis, and Saudi Arabia's major Shaybah oilfield was targeted by drones over the weekend.

G7 Signals Readiness to Act, But Stops Short of a Deal

The virtual G7 meeting, held at 8:30 a.m. EST and chaired by France, which currently holds the G7 presidency, brought together finance ministers alongside the heads of the International Monetary Fund, the World Bank Group, the OECD, and the International Energy Agency. After several hours of discussions, ministers released a joint statement declaring they stand "ready to take necessary measures, including to support the global supply of energy, such as stockpile release," but stopped short of announcing an immediate coordinated drawdown. France's Finance Minister Roland Lescure, who led the meeting, stressed the importance of international coordination. President Emmanuel Macron separately confirmed that the use of strategic reserves "is an envisaged option" and indicated G7 leaders could convene again later this week to finalize a response. A follow-up meeting of G7 energy ministers has been scheduled for Tuesday morning to continue deliberations, with any formal reserve release expected to follow that session.

Scope of the Proposed Reserve Release

According to sources familiar with the discussions, the United States believes a joint release of between 300 million and 400 million barrels would be appropriate, representing 25% to 30% of the 1.2 billion barrels held collectively by IEA member nations. Any coordinated drawdown would be organized by the International Energy Agency, which oversees the emergency reserve system shared across its 32 member countries. The scale of the proposed release would dwarf the 2022 response to Russia's invasion of Ukraine, which was the last time G7 nations coordinated a strategic petroleum release. President Donald Trump has struck a more cautious tone on tapping American reserves. On Saturday, he indicated that U.S. domestic supplies were ample and that prices would soon fall, writing that elevated oil costs are "a very small price to pay" for national and global security. Some analysts, however, have warned that even a large reserve release may have limited price impact without a clear path to restoring normal supply from the Gulf.

Global Markets Rattled by Stagflation Fears

Global financial markets endured a bruising session as energy price fears rippled outward. Japan's Nikkei 225 fell more than 5%, Europe's Euro Stoxx 50 tumbled around 1%, and South Korea's Kospi sank 6%. Wall Street and the FTSE 100 also headed lower. The South Korean won fell to a 17-year low against the U.S. dollar. The turbulence came on the heels of a surprisingly weak U.S. jobs report on Friday that had already raised concerns about economic momentum. Economists are warning of the risk of stagflation, a damaging combination of sluggish growth and persistent inflation, if oil prices remain elevated for an extended period. Germany's Bundesbank President Joachim Nagel, who attended the G7 talks, told CNBC that "this war is a burden for the economy in Germany, in Europe, and for the whole world." Goldman Sachs flagged that higher European natural gas prices, which have also spiked since the conflict began, pose particular inflation risks for European and Asian economies. With G7 energy ministers set to reconvene on Tuesday and G7 leaders potentially meeting later in the week, the coming days will be critical in determining whether the world's wealthiest nations can mount a coordinated response to what some energy analysts are already calling one of the most significant supply disruptions in modern history.

Citations:

"G7 Finance Ministers Hold Emergency Meeting Over Oil Prices." Bloomberg, 9 Mar. 2026, www.bloomberg.com.

"G7 Nations Weigh Coordinated Oil Reserve Release Amid Iran Crisis." Reuters, 9 Mar. 2026, www.reuters.com.

Nagel, Joachim. "G7 Oil Crisis Coverage." CNBC, 9 Mar. 2026, www.cnbc.com.

"G7 Considers 300–400 Million Barrel Reserve Release." Fortune, 9 Mar. 2026, www.fortune.com.

"Iran Closes Strait of Hormuz, Disrupting Global Oil Supply." UPI, 9 Mar. 2026, www.upi.com.

"European Markets Rattle as Oil Prices Surge." Euronews, 9 Mar. 2026, www.euronews.com.