Releasing strategic oil reserves in a bid to stabilise energy markets rocked by the Middle East crisis will be one option discussed at today's G7 finance ministers' meeting, a French government source said.
The Financial Times had reported earlier that G7 finance ministers were scheduled to discuss a joint release of strategic oil reserves coordinated by the International Energy Agency.
The French finance ministry said the meeting would "review the situation in the Gulf from an economic point of view" and the "events of recent days".
"The use of strategic reserves is an option being considered," the government source said.
France holds the rotating presidency of the Group of Seven advanced economies, which also includes Canada, Germany, Italy, Japan, the UK and the US.
European and Asian stock markets plunged todayas oil prices soared on fears about supplies from the Middle East as the US-Israeli war against Iran continued into a second week with no sign of letting up.
The surge was pared after the Financial Times report, which said that three G7 countries, including the US, had so far backed the idea.
US President Donald Trump said the spike in prices was a "small price to pay" to eliminate Iran's nuclear threat, repeating the White House's insistence that the rise is temporary.
The IEA was created to coordinate responses to major supply disruptions after the 1973 oil crisis.
In order to ensure energy security, the IEA imposes on its members an obligation to hold emergency oil stocks equivalent to at least 90 days of net oil imports. These stocks are either controlled directly by the state or by private companies.
