G7 Defers Oil Release, Calls on IEA to Review Global Supply Solutions

G7 Holds Off on Oil Reserve Release, Calls on IEA to Assess Market Options

Energy ministers from the G7 countries on Tuesday chose not to release strategic oil reserves immediately, instead asking the International Energy Agency (IEA) to assess global market conditions before any action. The IEA said it will convene an extraordinary meeting of member states to evaluate scenarios for stabilizing supply amid rising geopolitical tensions.

“Everyone is willing to take measures to stabilise the market, including the United States,” French Finance Minister Roland Lescure said. “We have asked the IEA to elaborate scenarios for a potential oil stock release. We need to be ready to act at any moment.”

Oil prices, which had spiked to a more than three-year high in the previous session, fell 7% on Tuesday after US President Donald Trump suggested the Middle East conflict could end soon, easing fears of prolonged disruptions to supply.

Later in the day, European leaders—including German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, and Belgian Prime Minister Bart De Wever—will discuss energy prices and competitiveness. Many in Europe remain concerned about a repeat of the 2022 energy crisis, when soaring prices forced some industries to shut down following Russia’s invasion of Ukraine.

Europe’s Energy Vulnerability

Even before the Iran conflict, European energy prices were higher than those in the US and China. European Commission President Ursula von der Leyen highlighted the region’s dependence on expensive fossil fuel imports, saying the Middle East crisis underscores Europe’s structural energy vulnerabilities. “The reduction in nuclear energy has further increased our exposure,” she added.

The EU imports more than 90% of its oil and around 80% of its gas. The G7 comprises the United States, Canada, Japan, Italy, Britain, Germany, and France, all of whom face heightened pressure to manage volatile energy markets amid global uncertainty.