G7 finance ministers will hold an emergency video conference at 13:30 Paris time (12:30 GMT) today to assess the economic impact of the US-Iran war as crude prices surge past $100/bl.
"This meeting was specially organised in response to the events of the past few days," the French finance ministry said. "This meeting should provide an opportunity to take stock of the situation in the Gulf, from an economic perspective."
Crude prices rose above $100/bl today for the first time since 2022, driven by concerns that supply disruption from the escalating US-Israeli war with Iran may be prolonged. Monday's rally delivered some of the sharpest intraday gains in years and increased pressure on governments to consider steps to stabilise the market.
The Financial Times reported that G7 ministers will discuss possible co-ordinated releases of emergency oil stocks with the IEA, and that three G7 countries support examining such action.
IEA executive director Fatih Birol said on Friday that member governments had "no plans for a collective release at this stage," saying the market remained well supplied and that the immediate constraint was logistical, not physical.
But attacks on energy infrastructure continued over the weekend, weighing on the outlook for supply. Kuwait's state-owned KPC said on Saturday that it has reduced crude output and refinery runs — becoming the second Mideast Gulf producer after Iraq to confirm a cut in production since the war began on 28 February. KPC also declared force majeure on oil exports, which depend entirely on the strait of Hormuz. Tanker traffic through the chokepoint remains at a virtual standstill.
In Saudi Arabia, the 1mn b/d Shaybah oil field was targeted by drones for a third straight day on Monday, all of which were intercepted, the defence ministry said. In Bahrain, state-owned Bapco Energies has declared force majeure on its refinery operations after Iranian drone strikes early on Monday in the Sitra area, home to its 405,000 b/d plant. And in the UAE, a fire broke out at Fujairah's oil storage and bunkering terminal after debris from an intercepted drone struck the manifold and berth area. Loading operations had only recently resumed after earlier drone incidents.
