The G7 ( Group pf 7) has signalled readiness to act as oil prices surged above $110 per barrel, following escalating tensions involving the United States, Israel, and Iran. Officials warned that the conflict could disrupt global energy supplies if fighting near the Strait of Hormuz continues, a key route for roughly one‑fifth of the world’s oil shipments.
The sharp jump in oil prices sent shockwaves through global stock markets. Major indices in Asia and Europe, including Japan’s Nikkei 225 and Hong Kong’s Hang Seng, fell steeply as investors worried about broader economic fallout from the energy squeeze.
During an emergency virtual meeting, G7 finance ministers said they were ready to take “necessary measures” to stabilise energy supplies. This could include tapping strategic oil reserves, though no immediate release was announced as further coordination with international partners is required.
Fatih Birol, head of the International Energy Agency, cautioned that global oil markets are under significant stress. Disruptions in production and shipping have heightened the risk of supply instability, he said, urging governments to monitor the situation closely.
The rise in oil prices is expected to increase fuel costs for consumers and add pressure on inflation, already a concern for many economies. Analysts warn that if the conflict continues, prices could climb even higher, affecting households and businesses worldwide.
The rise in oil prices is expected to push up fuel costs for consumers and add inflationary pressure in economies already grappling with uncertainty. Analysts caution that if the conflict continues, prices could climb further, affecting households and businesses worldwide.
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