Global oil prices surged dramatically after attacks on oil facilities and the closure of the Strait of Hormuz, reaching over $119 per barrel. However, after G7 countries signal emergency oil releases, prices began to fall, easing pressure on the market. This development comes as energy markets respond to supply concerns caused by geopolitical tensions in the region.
On Monday, Brent crude oil rose by $21.25 to reach $119.50 per barrel, while U.S. WTI crude gained $21 to hit $119.48 per barrel. This marked the first time crude oil exceeded $100 per barrel since the COVID-19 pandemic. The sudden spike created global concern over energy supply stability.
In response, the G7 countries proposed using emergency oil reserves to stabilize the market. A virtual meeting of G7 finance ministers, led by France, discussed the potential release of strategic reserves. While no final decision has been made, all members agreed to use every possible measure to stabilize the market if needed.
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The International Energy Agency (IEA) confirmed that member countries currently hold over 1.2 billion barrels of government-controlled emergency reserves, in addition to 600 million barrels of industrial reserves under government supervision. Previously, these reserves were used in 2022 to support the market after Russia’s invasion of Ukraine.
After the G7 signal, global oil prices began to fall rapidly. Brent crude dropped from $119.50 to $98.69 per barrel, while WTI fell from $99.80 to $95.65 per barrel. Analysts note that the G7 countries signal emergency oil releases has helped reduce market panic, even as the Strait of Hormuz remains closed, affecting about one-fifth of the world’s daily oil and significant natural gas flows.
