MW G7 scrambles emergency meeting and could deploy unprecedented oil reserves as prices soar

By Nora Redmond

Oil prices spiked over the weekend after three countries in the Middle East said production had been cut.

Group of Seven finance ministers plan to discuss a coordinated release of petroleum reserves, as an escalating Iran conflict drove oil prices above $100 a barrel.

French President Emmanuel Macron, who is now head of the G7, told reporters on his way to Cyprus on Monday morning that "the use of strategic reserves is an envisaged option" as energy costs soar, according to the Associated Press.

The Financial Times reported that Fatih Birol, the executive director of the International Energy Agency, will head a call with G7 finance ministers to discuss the conflict at 8:30 a.m. Eastern. The IEA did not respond to a request for comment from MarketWatch.

The IEA's strategic petroleum reserves are meant to shield countries from short-term oil price crises, with members required to ensure oil stock levels equal to no less than 90 days of net imports. Those members must be "ready to collectively respond to severe supply disruptions affecting the global oil market," the IEA says.

Some U.S. officials would like to see a joint release of about 25% to 30% of the overall 1.2 billion barrels held, or 300 million to 400 million barrels, one source told the FT. That would mark the largest amount of oil released from reserves since the IEA's inception.

Since the reserves were set up in 1974, there have been five such releases. The last two happened shortly after Russia's invasion of Ukraine in February 2022. The agency said the release in April of that year was its biggest ever, with 120 million barrels made available.

The U.S. and two other G7 members have voiced their support for the proposal, the report said.

The report helped to bring oil prices off levels that surged near $120 a barrel on Sunday. West Texas Intermediate crude (CL.1) was last up 11% to just over $101 a barrel after Iraq, Kuwait and the United Arab Emirates all announced reductions in their output of oil amid escalating tensions in the Middle East.

Brent crude futures (BRN00) also pared gains, but were still up 11% to $103 per barrel.

Oil prices began to spike over the weekend after three Middle Eastern states confirmed production cuts.

-Nora Redmond

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March 09, 2026 07:32 ET (11:32 GMT)

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