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G7 Vows Action to Stabilize Energy Markets Amid Iran Conflict Disruptions

The G7 has declared its readiness to take all necessary measures to stabilize global energy markets following major disruptions from the Iran conflict. The effective closure of the Strait of Hormuz has triggered supply fears, sending Brent crude prices soaring past $116-$120 per barrel. Japan's industry minister revealed preparations are underway for a possible additional coordinated release of strategic oil reserves. Japanese officials warned that rising crude prices threaten the foreign exchange market, people's lives, and the broader economy.

Key Points: G7 Pledges Action on Energy Markets After Iran Conflict

  • Oil prices spike past $120
  • Strait of Hormuz effectively blocked
  • G7 ready for all necessary measures
  • Coordinated oil reserve release considered
  • Japan warns of economic threat
2 min read

G7 ready to take all necessary measures to stabilise energy markets amid Iran conflict disruptions

G7 ministers pledge all necessary measures to stabilize energy markets as Iran conflict disrupts supplies and sends oil prices soaring past $120.

"preparations are underway for a possible additional coordinated release of strategic oil reserves - Ryosei Akazawa"

Tokyo, March 31

The Group of Seven on Monday declared its readiness to take "all necessary measures" to stabilise global energy markets amidst the ongoing war in Iran, the Kyodo News reported.

This decision follows significant disruptions to global energy supplies, with Brent crude oil prices spiking past $116-$120 per barrel due to fears of a prolonged conflict and the effective closure of the Strait of Hormuz.

As reported by Kyodo News, in a statement issued after a virtual meeting of finance ministers, energy ministers and central bank governors, the G7 reaffirmed its "commitment to keep pressure" on Russia over sanctions tied to the Ukraine-Russia war.

The grouping, according to Kyodo News, also urged "all countries to refrain from imposing unjustified export restrictions" on petroleum products, while pledging to "coordinate closely" with international partners and "remain prepared to meet as needed in response to further developments."

Speaking in Tokyo after the talks, Japan's industry minister Ryosei Akazawa, as quoted by Kyodo News, told reporters that "preparations" are underway for a possible additional coordinated release of strategic oil reserves being considered by the International Energy Agency (IEA).

Japanese Finance Minister Satsuki Katayama, as quoted by Kyodo News, warned that rising crude prices are "affecting the foreign exchange market" and could threaten "people's lives and the economy," adding Tokyo is monitoring the situation with "extremely high vigilance."

The market turbulence follows the escalation of the West Asia conflict after US and Israeli strikes on Iran, with Iranian forces effectively blocking the Strait of Hormuz, a critical artery for global oil shipments, triggering supply disruptions and a surge in crude prices.

Earlier this month, the Paris-based IEA, which includes 32 member countries such as the G7 nations, initiated a coordinated release of over 400 million barrels of oil reserves, its first such move since 2022 following Russia's full-scale invasion of Ukraine.

According to the IEA, Japan contributed 79.8 million barrels to the release, the second-largest share after the United States, which supplied 172.2 million barrels.

Japan, which depends on the Middle East for more than 90 per cent of its crude imports, remains particularly vulnerable to the disruption.

The G7 meetings, chaired this year by France, were held on March 9 and 10, with ministers agreeing to "stand ready" for further action as the situation evolves.

- ANI

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Reader Comments

S
Sarah B
While G7 action is necessary for global stability, it often feels like a reactive band-aid. The real solution is accelerating the transition to renewable energy. Countries like India are making strides in solar, which is the way forward to reduce this geopolitical dependency.
A
Arjun K
Strait of Hormuz blocked? This is a nightmare scenario. India imports so much oil from that region. Our strategic reserves are not infinite. The timing is terrible with inflation already biting. Jai Hind, but we need some serious diplomatic maneuvering now.
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Priya S
Respectfully, the G7 statement feels a bit hollow. "All necessary measures" and "prepared to meet" – these are just words. We need concrete, immediate action to prevent a global recession. Releasing reserves is good, but what's the long-term plan to de-escalate the conflict?
K
Karthik V
Our government should fast-track agreements with other oil suppliers. Russia, maybe? But with sanctions, it's complicated. This is why Atmanirbhar Bharat in energy is so crucial. We must reduce imports.
M
Michael C
The interconnectedness of the global economy is stark. A conflict in West Asia affects a finance minister in Tokyo and a taxi driver in Mumbai. Coordination is key, but prevention of such conflicts should be the ultimate goal.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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