The G7 finance ministers will hold an emergency meeting tonight to coordinate the release of strategic oil reserves in response to the Middle East supply crisis.

According to reports, as the Middle East conflict has led to disruptions in oil transportation in the region, international oil prices continue to soar. Finance ministers of the Group of Seven (G7) countries are planning to discuss the possibility of jointly releasing emergency oil reserves on Monday. The report cited sources familiar with the matter as saying that G7 finance ministers will hold a phone conference at 8:30 am New York time on Monday, with actions coordinated with the International Energy Agency. It is understood that three G7 member countries, including the United States, have expressed support for this strategy. Historically, coordinated releases of strategic oil reserves have only occurred five times, with two occasions to address market turmoil caused by the Russia-Ukraine conflict in 2022. This mechanism has been activated previously during events such as Hurricane Katrina, supply interruptions in Libya, and the First Gulf War to address sudden supply crises. As the Strait of Hormuz is effectively blocked, oil exports from Persian Gulf countries are disrupted. Brent crude oil prices soared to nearly $120 per barrel on Monday, significantly higher than the pre-conflict level of around $72. Several major oil-producing countries, including the UAE and Iraq, have been forced to reduce production due to lack of storage space, while Saudi Arabia is urgently rerouting transport routes towards the Red Sea. The impact of the joint reserve release news has narrowed the price increase. The report quoted a source as saying that some US officials believe that releasing 300-400 million barrels (about 25% to 30% of the total reserves) from the current 1.2 billion barrels of strategic reserves is a more suitable option. The oil supply crisis triggered by the Middle East situation has had a significant impact on global consumers, with long queues at gas stations in many countries and rising aviation fuel prices pushing air ticket prices higher. Many Asian refineries that rely on Middle East oil have been forced to reduce operating rates due to difficulties in finding alternative sources of supply from the Persian Gulf.