Mark Carney Urges G7 to Release Oil Reserves Amid Iran Conflict
Canadian Prime Minister Mark Carney has urged G7 member nations to urgently open their strategic oil reserves to dampen the shock of surging global oil prices triggered by escalating armed conflict in Iran.
Carney made the statement in the Canadian Parliament (House of Commons) whilst responding to questions regarding the government’s strategy in supporting citizens affected by inflation caused by the war.
“The best option is de-escalation, to create peace,” Carney said in French. He then added, “We need to use G7 oil reserves.”
The call comes as the International Energy Agency (IEA) prepares to meet on Tuesday to discuss releasing strategic oil reserves, with the aim of strengthening supplies and calming volatile energy markets.
The conflict has disrupted key shipping routes for Persian Gulf oil, namely the Strait of Hormuz off Iran’s coast. As a result, global oil prices have surged to their highest level since Russia’s invasion of Ukraine in 2022. Previously, G7 finance ministers had met but refrained from ordering reserve releases, instead requesting the IEA first review market conditions.
The situation escalated after Iranian drone strikes hit the Ruwais Industrial Complex in the United Arab Emirates on Tuesday. The area is home to the Middle East’s largest oil refinery operated by ADNOC with production capacity reaching 922,000 barrels per day.
Although Abu Dhabi Media reported no casualties in the fire, refinery operations were temporarily halted as a precautionary measure.
On the defence front, relevant ministries reported having intercepted eight ballistic missiles and 26 drones, though nine other drones succeeded in penetrating air defences.
In the United States, the escalation has triggered anger from senior Democratic Party figures who have labelled the conflict as “Donald Trump’s War”. They contend that Trump’s policies have strangled the American economy.
“Donald Trump is risking the lives of our troops, the safety of the American people, the stability of the global economy, and wasting one billion dollars per day on his whims, feelings, and contradictions. His incompetence is extremely dangerous and damaging,” said Senate Minority Leader Chuck Schumer.
Echoing Schumer, Hakeem Jeffries from the Democratic faction in the US House of Representatives criticised the Republican Party, which he said had failed to reduce the cost of living. He stated that the government was unwilling to “spend one cent to lower your grocery bills,” yet instead was “raising gas prices for working-class Americans.”