Tokyo: The International Energy Agency has called on major economies to consider releasing emergency oil reserves as global energy markets face growing pressure from rising prices and geopolitical tensions.
During an online meeting of the Group of Seven finance ministers on Monday, the agency suggested a coordinated release of oil from strategic reserves to help stabilise the market. Japan’s finance minister said the proposal was discussed as countries reviewed the impact of the ongoing conflict in the Middle East on global energy supplies.
Oil prices have surged sharply in recent days amid fears that the widening conflict involving Iran could disrupt supplies from the region. The Middle East remains one of the world’s most important sources of crude oil, and any disruption to shipping routes has the potential to affect global markets.
The meeting brought together finance ministers and central bank leaders from the G7 nations along with representatives from international institutions including the International Monetary Fund, the World Bank and the Organisation for Economic Cooperation and Development.
Officials said the International Energy Agency warned that oil markets had become increasingly unstable and that governments should remain ready to use emergency reserves if needed. Strategic reserves are large oil stockpiles maintained by many countries to respond to major supply disruptions or sudden price spikes.
Despite the discussion, no decision has yet been taken on whether to release the reserves. Some G7 officials said countries are still evaluating the situation and monitoring developments in the Middle East before taking further action.
Analysts say a coordinated release could involve hundreds of millions of barrels of oil if the crisis deepens. Such a move would be aimed at easing supply fears and preventing further increases in fuel prices.
The surge in oil prices has raised concerns about rising inflation and slower economic growth around the world. Countries that depend heavily on imported energy are especially vulnerable to sudden price increases.
Several governments are also considering domestic measures to protect consumers and businesses from higher fuel costs if the energy market remains volatile.
Energy ministers from the G7 are expected to continue discussions in the coming days as they assess the situation in global oil markets and the possible need for coordinated action.