G7 nations will hold an emergency meeting on Monday to discuss surging oil prices as crude jumped above $100 a barrel and stock markets slumped over the escalating US-Israeli war with Iran.
Finance ministers from leading industrialised countries, including UK Chancellor Rachel Reeves, will gather to discuss the economic impact of the conflict.
Global oil prices reached nearly $120 on Monday over fears of a prolonged disruption to energy supplies through the key Strait of Hormuz shipping route and the UK’s FTSE 100 share index fell 1.5%.
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 invasion of Ukraine.
Major disruption to energy supplies from the region threatens to push up prices for consumers and businesses around the world.
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.
On Sunday, Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as Supreme Leader, signalling that more than a week into the conflict hardliners remain in charge of the country.
The US and Israel launched fresh waves of airstrikes across Iran over the weekend, hitting multiple targets including oil depots.