Amid continuing concerns about the future of the global energy market, Reuters reported, citing a source in the French government, that member countries of the Group of Seven (G7) plan to review a proposal for the coordinated release of strategic emergency oil reserves.
A meeting of finance ministers from the G7 countries— the United States, the United Kingdom, Canada, Japan, France, Italy, and Germany— is scheduled to take place on Monday, March 9.
Reuters wrote that following production cuts by major oil producers and the introduction of Mojtaba Khamenei as the new leader of the Iranian regime—seen as a sign of the continued dominance of hardliners in power—oil prices have experienced an unprecedented surge.
Iran’s Youth Are Selling Their Kidneys as the Economy Continues to Plunge
Under these conditions, various countries are trying to adopt measures to contain the consequences of rising oil prices for their economies and consumers.
A spokesperson for the European Commission said the Iran crisis has pushed oil prices to more than 100 dollars per barrel.
Meanwhile, the European Union announced that its oil and gas supply coordination groups will hold a meeting on March 9.
During the meeting, the impact of Middle East conflicts on the energy market will be reviewed, along with the latest assessments by member states regarding the status of their oil reserves.
The military campaign against the Iranian regime and the regime’s retaliatory attacks have caused the Strait of Hormuz—one of the world’s most vital shipping routes—to become nearly closed.
The Strait of Hormuz is a narrow waterway between Iran and Oman through which about one-fifth of the world’s crude oil and liquefied natural gas passes.
U.S. President Donald Trump downplayed the rise in oil prices on Sunday evening, March 8, saying the situation would be temporary and that prices would quickly decline after the destruction of the Iranian regime’s nuclear program.
He added that the rise in oil prices is a very small price to pay for the security and peace of the United States and the world.
Decline of Stock Indexes in Asian Financial Markets
Reuters added in its report that as concerns intensified about a prolonged disruption in energy supply, stock indexes in Asian financial markets declined and the value of the U.S. dollar increased.
Asian countries obtain about 60% of their required oil from the Middle East. The figure is about 70% for South Korea and nearly 95% for Japan.
Lee Jae-myung, the president of South Korea, announced that the government will set a cap on fuel prices for the first time in about 30 years.
Lee said in an emergency government meeting that this crisis is placing significant pressure on the country’s economy because it is highly dependent on global trade and energy imports from the Middle East.
A senior member of Japan’s parliament also said the government has instructed one of the country’s strategic petroleum reserve facilities to prepare for a possible release of crude oil.
However, Japan’s Chief Cabinet Secretary later stated that no decision has yet been made to draw from the country’s oil reserves.
Reports indicate that the Iranian regime continues its attacks against countries in the region.
On the morning of March 9, a drone attack by the Iranian regime targeted the BAPCO oil refinery in Bahrain and caused damage.
BAPCO is Bahrain’s main oil refining facility and one of the key centers of the country’s energy sector.
Qatar had previously warned that oil prices could rise to as high as 150 dollars per barrel.
