G7 energy ministers stand ready to take all necessary measures, including using strategic oil reserves, to counter soaring crude prices due to Middle East conflict.

PARIS: G7 energy ministers have declared they are ready to take “all necessary measures” in coordination with the International Energy Agency to tackle soaring crude oil prices.

The ministers’ statement came as G7 leaders prepared for a video conference to discuss the economic fallout from the Middle East war.

“We agreed to stand ready to take all necessary measures in coordination with IEA Members,” the ministers said in their statement.

They added that G7 members would carefully consider recommendations from recent crisis talks held by the IEA.

French Finance Minister Roland Lescure separately stated that no decision had been taken “at this stage”.

He emphasised the need to send a clear message about replacing oil shipments affected by the Strait of Hormuz closure.

The Wall Street Journal reported the IEA had proposed its largest ever release of oil reserves to counter price surges.

This release would exceed the 182 million barrels member countries released following Russia’s invasion of Ukraine in 2022.

Crude markets have experienced wild volatility since US and Israeli strikes on Iran began last month.

Tehran retaliated by attacking targets across the oil-rich Gulf, effectively shutting the crucial Strait of Hormuz.

President Emmanuel Macron had earlier discussed the possibility of G7 countries using emergency oil reserves.

IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks.

A further 600 million barrels of industry stocks are held under government mandates.

The Paris-based IEA was created to coordinate responses to major supply disruptions after the 1973 oil crisis.

It imposes an obligation on members to hold emergency stocks equivalent to at least 90 days of net oil imports.

 The Sun Malaysia