Oil prices surged past $110 a barrel on Monday, reaching their highest level since mid-2022, as escalating tensions in the Middle East fueled concerns about supply disruptions. West Texas Intermediate (WTI) crude later pulled back to around $105 per barrel, while the global benchmark Brent crude pared gains to about $108.8 per barrel, according to CNBC reporting.
The price spike followed a weekend of intensified conflict involving the United States, Israel, and Iran, including airstrikes targeting oil facilities in Iran and neighboring Gulf states. Traffic through the Strait of Hormuz, a critical shipping route for global oil supplies, has been significantly curtailed since the conflict began, raising fears of prolonged disruptions. Approximately one-fifth of the world’s oil supply transits the Strait of Hormuz.
In response to the surging prices, the G7 finance ministers are scheduled to hold an emergency call at 8:30 a.m. EST to discuss a coordinated release of crude oil from their strategic reserves, the Financial Times reported, citing sources familiar with the situation. The United States and two other G7 members are reportedly supporting the plan, while others are assessing market conditions before committing. G7 finance ministers will discuss releasing oil from emergency reserves on March 9, according to CNBCTV18.
The G7 collectively holds approximately 1.2 billion barrels of crude oil, though this figure is lower year-on-year, according to Mukesh Sahdev, Founder CEO and Chief Oil Analyst at XAnalysts. Sahdev cautioned that even if a release is agreed upon, “it will take G7 time to release and work the freight and insurance.”
Iraq, Kuwait, and the United Arab Emirates, three major OPEC producers, have also cut oil output due to limited storage capacity and an inability to export through the Strait of Hormuz, owing to Iranian threats against tankers. The U.S. Has ordered staff to depart Saudi Arabia as the conflict expands.
President Donald Trump posted on Truth Social that a short-term increase in oil prices was a “very small price to pay” for eliminating Iran’s nuclear threat, adding, “Only fools would think differently!”
The planned G7 discussions follow an initial jump in oil prices of more than 25% on Monday morning, triggered by concerns over potential shipping disruptions linked to the expanding conflict. Brent crude had earlier reached nearly $120 per barrel. The conflict began on February 28 with US and Israeli strikes on Iran, according to News18.
The G7 comprises the United States, United Kingdom, Canada, France, Germany, Italy, and Japan. The European Union also participates in G7 meetings but is not a formal member country.
As of Monday afternoon, the G7 finance ministers had not issued a public statement regarding the outcome of their discussions.
