Oil without brakes, the G7 evaluates whether to tap into strategic reserves. The shock wave in…

The G7 finance ministers will discuss a possible joint release of oil from reservescoordinated by the International Energy Agency, in one emergency meeting which will be held today, aimed at countering the surge in oil prices following the conflict in the Gulf. The Financial Times reports it. According to sources close to the situation, including a senior G7 official, the ministers and Fatih Birol, executive director of the IEA, will hold a call at 8.30am (Eastern time) to discuss the impact of the war with Iran.

So far, according to sources cited by the Financial Times, three G7 countries, including the United States, have expressed their support for the idea. The IEA’s 32 members hold strategic reserves as part of a collective emergency system designed to deal with oil price crises.

One source said some U.S. officials believe a joint release of 300-400 million barrels, or 25-30% of the 1.2 billion barrels in reserve, would be appropriate. The meeting takes place while US President Donald Trump is under pressure to stop the sharp price rise of crude oil since the start of the war.

“The use of strategic reserves is an option being evaluated,” a source told AFP, as finance ministers from the G7 (United States, Japan, Canada, United Kingdom, France, Germany and Italy) meet at 1.30pm French time (12.30 GMT) under the French presidency to address the economic consequences of the war in the Middle East, which has caused oil and gas prices to soar in the past week.

This morning, Asian stock markets tumble after a jump in oil prices. On the Tokyo Stock Exchange, the benchmark Nikkei index lost 5%. In Seoul, the Kospi index fell by 6.52%, the Hang Seng index in Hong Kong fell by 1.64%. Taipei loses 4%, Sydney 2.52%. The Chinese ones were also negative with Shanghai recording -0.54% and Shenzhen -0.63%.

Crude oil above 112 dollars a barrel

Oil prices have soared, with WTI crude rising 25% to over $112 a barrel, in a market panicked over the ongoing war in the Middle East and the ongoing blockade of the Strait of Hormuz. At around 2:00 GMT, West Texas Intermediate (WTI, the US benchmark) rose 25.71% to $114.25 a barrel. Brent crude, the global benchmark, jumped 22.30% to 113.34 dollars a barrel.