“The use of strategic reserves is an envisaged option,” French President Emmanuel Macron declared Monday as G7 finance ministers raced into emergency talks, oil exploding past $116, highest since 2022, while Iran’s Gulf war threatens global markets and tests WTO trade limits. The ministers will hold the call at 8:30 a.m. New York time with Fatih Birol, executive director of the International Energy Agency, to assess the impact of the conflict on global energy markets.
Three G7 countries, including the United States, have expressed support for releasing oil from emergency reserves, according to people familiar with the discussions cited in media reports. Officials said policymakers are considering a coordinated release of 300 million to 400 million barrels, aimed at stabilizing global markets following the sharp rise in crude prices.
The proposed intervention would represent roughly 25% to 30% of the approximately 1.2 billion barrels held in strategic reserves by IEA member countries. Those reserves are maintained as part of a collective emergency response system designed to mitigate severe supply disruptions in global oil markets.
Oil prices surged after the escalation of hostilities in the Gulf. During Asian trading, Brent crude rose about 24% to $116.71 per barrel, while West Texas Intermediate (WTI) also jumped sharply, reflecting growing concerns that the conflict could disrupt key shipping routes and global supply chains.
The price shock has already rattled financial markets. Stock indices across Asia and Europe declined as investors reacted to fears that higher energy prices could intensify inflation and slow economic growth worldwide.
Emergency petroleum reserves were created when the International Energy Agency was established in 1974 following the Arab oil embargo, which caused severe global fuel shortages and price spikes. IEA member countries are required to maintain strategic stockpiles as part of a coordinated system designed to respond to major disruptions in oil supply.
According to documents prepared for recent discussions, IEA member states currently hold more than 1.24 billion barrels of public strategic stocks, with an additional 600 million barrels held by industry that could also be mobilized during a crisis. Together these reserves could cover roughly one month of oil demand in IEA countries and more than 140 days of net imports.
The United States and Japan account for around 700 million barrels of the public reserves held by IEA members, making them the largest contributors to the emergency stockpile system. Policymakers are now weighing whether another coordinated release similar to the intervention during the 2022 energy crisis following Russia’s invasion of Ukraine could help calm markets if supply disruptions worsen.