Oil Surges, Stocks Tumble: G7 Considers Emergency Reserve Release Amid Gulf Conflict

Global oil prices are climbing sharply while stock markets plunge as the conflict in the Gulf escalates. Finance ministers from the Group of Seven (G7) are set to hold an emergency meeting to discuss a coordinated release of strategic petroleum reserves to stabilize markets and curb inflation.

The meeting, scheduled for Monday morning in New York, will include consultations with the International Energy Agency (IEA) to assess the conflict’s impact on energy supply. Several countries, including the United States, have already signaled support for a joint release of emergency oil stockpiles. IEA member states collectively hold more than 1.2 billion barrels of strategic oil reserves, designed to respond to sudden supply disruptions.

Officials are reportedly considering releasing 300 to 400 million barrels—roughly a quarter of total reserves—marking one of the largest potential emergency releases since 2022, when similar measures were taken after Russia’s invasion of Ukraine. Additional industry reserves could also be mobilized if necessary.


Oil prices have surged sharply. Brent crude briefly jumped over 20 percent in Asian trading to above $116 per barrel, while U.S. benchmark West Texas Intermediate showed similar gains. Gasoline prices in the U.S. rose to an average of $3.45 per gallon, up sharply from under $3, raising concerns about consumer costs amid already fragile economic conditions.

Meanwhile, global stock markets have reacted negatively. Asian indexes fell steeply, European shares dropped, and U.S. futures pointed to further declines. Investors fear prolonged disruption to energy supplies and its impact on inflation and economic growth worldwide.


The Strait of Hormuz, a critical chokepoint for about a fifth of the world’s oil supply, has seen near-total shipping disruption. Airstrikes in Iran have targeted oil depots and energy infrastructure, while neighboring Gulf states have intercepted multiple waves of drones heading toward key facilities. A coordinated release of strategic reserves is one of the few immediate tools available to calm markets.

Such measures were used previously during the Gulf War, after Hurricane Katrina, and in response to supply shocks triggered by geopolitical crises. Easing global oil prices is critical not only for controlling inflation but also for preventing other actors from exploiting high energy revenues to fund military operations.
As the situation unfolds, volatility in oil prices and stock markets is likely to continue, while global economies brace for the wider impact of the Gulf conflict.