PARIS — Finance ministers from leading industrialized countries will hold an emergency meeting on Monday to discuss the possible release of emergency reserves as oil prices jumped above $100 a barrel over the escalating US-Israeli war with Iran. The talks were first reported by the Financial Times, which said the International Energy Agency would join the discussions.Three G7 countries, including the US, have so far expressed support for the idea, the FT said, citing sources. The report came as global oil prices surged more than 25%to nearly $120 on Monday, their highest levels since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran. The Financial Times reported the G7 meeting will discuss a joint release of petroleum from reserves, co-ordinated by the International Energy Agency (IEA). If reserves are released by IEA members it would be the first time since 2022, when action was taken following Russia’s full-scale invasion of Ukraine. Major disruption to energy supplies from the region threatens to push up prices for consumers and businesses around the world. Rising inflation could lead to fewer interest rate cuts by central banks. About a fifth of the world’s oil supply is usually shipped through the Strait of Hormuz. But traffic through the narrow passage has all but halted since the war started more than a week ago. The US and Israel launched fresh waves of airstrikes across Iran over the weekend, hitting multiple targets including oil depots. Meanwhile, Iran targeted energy infrastructure in neighboring Gulf states. Overnight, Saudi Arabia said it had intercepted and destroyed two waves of drones heading towards a major oilfield. Adnan Mazarei from the Peterson Institute for International Economics said the jump in oil prices was expected, given how production has been halted in some Gulf countries and the signs of a prolonged conflict in the region. “People are realising that this won’t end quickly,” he said, adding that the promises of insurances and objectives laid out by the US are “becoming more unrealistic.” US President Donald Trump, who campaigned on bringing down the cost of living, has repeatedly dismissed concerns about rising oil prices. On Sunday, he posted on his Truth Social platform: “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!” His Energy Secretary, Chris Wright, told US broadcasters on Sunday that Israel, not the US, was targeting Iran’s energy infrastructure, amid some concern about rising domestic pump prices caused by the war. Data from motorists group AAA showed the average price for regular gasoline in the US rose 11% last week to $3.32 a gallon. — Agencies
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