G7 to Hold Meeting to Suppress Oil Prices

Tokyo - The Group of Seven advanced industrial nations (G7) is scheduled to hold an online meeting on Monday local time to discuss measures to address the rise in crude oil prices amid the war between the United States-Israel and Iran. The meeting will involve finance ministers, energy ministers, and central bank governors. One of the agendas expected to be discussed in the virtual G7 meeting is additional coordinated releases of strategic oil reserves, which is currently being considered by the International Energy Agency (IEA). Following the conflict in the Middle East launched by US and Israeli airstrikes against Iran at the end of last month, Iranian forces have effectively blocked the Strait of Hormuz, a vital sea route for global oil transportation, causing supply disruptions and a surge in crude oil prices. Earlier this month, the IEA, a Paris-based body comprising 32 countries including G7 members, began releasing their oil reserves, totalling more than 400 million barrels. This effort is the first joint action since 2022 when Russia launched a full-scale invasion of Ukraine. Of the total coordinated oil production by the IEA, 79.8 million barrels came from Japan, the second largest among IEA members after the United States which contributed 172.2 million barrels, according to IEA data. Japan itself relies on the Middle East for more than 90 percent of its crude oil imports. The G7 finance ministers held talks on 9 March, followed by an energy ministers’ meeting the next day, with an agreement to be “ready” to take necessary steps. Led by France this year, the G7 also consists of the United Kingdom, Canada, Germany, Italy, Japan, the United States, and the European Union.