Pre-meeting briefing? G7 Group: Principally supports the use of strategic oil reserves

The G7 released an important signal just hours before a key summit, stating in principle support for using strategic oil reserves to address energy market turmoil caused by the Iran conflict.

According to Bloomberg, G7 energy ministers said in an email statement on Wednesday that they will work closely with the International Energy Agency (IEA), monitor energy market trends, and coordinate within the G7 as well as with international partners, IEA member countries, and other nations.

The G7 energy ministers added that they “principally support taking proactive measures, including the use of strategic reserves,” to respond to the situation.

Notably, French President Emmanuel Macron, the current G7 chair, will convene a video summit of G7 leaders at 22:00 Beijing time on Wednesday to focus on the Iran crisis and the sharp rise in energy prices.

The discussion will center on “energy situation” and the Strait of Hormuz issue, with a clear statement that “I doubt this will be just a verbal intervention.” If G7 leaders announce substantive measures after the meeting, tonight could trigger the third consecutive trading day of significant oil price fluctuations.

Energy Ministers’ Meeting: Principled Support, No Final Decision Yet

On Tuesday, G7 energy ministers held a video conference with the IEA to discuss the impact of the Iran conflict on energy markets and supplies. Afterward, in a joint statement issued on Wednesday, they said they are “closely monitoring energy market dynamics with the IEA and strengthening coordination within the G7 and with international partners and IEA member countries.”

The statement also welcomed the IEA Council meeting held that day, calling it a “key opportunity” for member countries to assess current supply security and market conditions.

However, according to Reuters, the energy ministers did not reach an agreement on releasing strategic oil reserves during Tuesday’s meeting. Instead, they asked the IEA to assess the current situation before taking action. The phrase “principally support” in the statement indicates that specific action plans are still pending final approval at the leader level summit.

Oil Prices Volatile This Week, Market Highly Sensitive

Oil prices have experienced two major swings this week, with markets extremely sensitive to any policy signals. On Monday, benchmark prices surged to nearly four-year highs; on Tuesday, Trump predicted the Middle East conflict might end soon, causing oil prices to plummet 11%. Later that evening, a tweet—considered a “blunder”—from the U.S. Energy Secretary claimed the U.S. Navy had successfully escorted a tanker through the Strait of Hormuz, leading to a sudden 20% drop in oil prices.

Against this backdrop, the outcome of the G7 summit is closely watched by the market. If substantial reserve releases are announced afterward, it could directly pressure oil prices downward; if only verbal commitments are made, market reactions may be more limited.

Risk Warning and Disclaimer

Market risks are inherent; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.