Paris: Energy ministers from the Group of Seven (G7) have declared their readiness to implement ‘all necessary measures’ in cooperation with the International Energy Agency (IEA) to counter threats to global energy supplies arising from the ongoing conflict in the Middle East, as outlined in a statement issued on Wednesday. They made this announcement following a virtual meeting on Tuesday with Fatih Birol, the head of the IEA, to evaluate the impact of the regional crisis on global energy markets.
According to Anadolu Agency, the group emphasized their vigilance in monitoring the security of oil and gas supplies and the volatility of energy prices both among member countries and worldwide. In a joint communique, they stated their commitment to working alongside the IEA to scrutinize energy market trends and coordinate efforts within the G7 and with international partners.
The G7 also expressed support ‘in principle’ for proactive measures to mitigate potential disruptions, which could include utilizing strategic reserves. Subsequently, the IEA proposed the possibility of a coordinated release of approximately 300 million to 400 million barrels from strategic stockpiles held by its member countries. If implemented, this would represent the largest emergency oil release in the IEA’s history.
The energy ministers underscored the importance of carefully reviewing recommendations from their discussions and reiterated their readiness to take action if required. The communique affirmed their agreement to stand prepared to take all necessary measures in coordination with IEA Members.
The situation has intensified since Israel and the US launched joint attacks on Iran on February 28, resulting in over 1,200 casualties, including former Supreme Leader Ali Khamenei. In retaliation, Iran has executed drone and missile strikes against Israel, Jordan, Iraq, and Gulf countries hosting US military assets.
Moreover, Iran has effectively closed the Strait of Hormuz around March 1. This strategic waterway typically handles about 20 million barrels of oil shipments daily and accounts for roughly 20% of the global liquefied natural gas trade.