Global oil markets are under intense pressure after crude prices surged to their highest level since 2022, reaching $119 per barrel on March 9, 2026. In response to the sharp rise, the Group of Seven (G7)—including the United States, Japan, Germany, France, the United Kingdom, Italy, and Canada—is weighing the possibility of releasing emergency oil reserves to stabilize supply.
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The global energy situation has been further strained by ongoing tensions linked to the conflict involving Iran, which has disrupted shipping routes across the Gulf region. These disruptions have pushed crude prices nearly 30% higher, intensifying concerns about worldwide fuel shortages.
Meanwhile, Saudi Arabia has begun cutting oil production. State energy giant Saudi Aramco has reportedly reduced output at several facilities, following earlier supply cuts by Iraq, Kuwait, Qatar, and the United Arab Emirates. With tanker movement restricted and storage facilities filling up, shipments from the region have slowed significantly.
G7 discusses emergency oil release
Finance ministers from the G7 have held discussions about releasing strategic oil reserves to counter the supply shock. A final decision could be made later this week by the group’s leaders.
The International Energy Agency (IEA) currently coordinates emergency energy responses among industrialized nations. According to the agency, member countries collectively hold more than 1.2 billion barrels of government-controlled emergency reserves, along with 600 million barrels stored by industry.
Supply disruptions across the Middle East
Analysts estimate the conflict involving Iran has already reduced global oil supply by around 200 million barrels in the past 10 days.
Over the weekend, Iraq slashed production at its main southern oilfields by 70%, reducing output to about 1.3 million barrels per day.
In Bahrain, energy firm Bapco Energies declared force majeure after an attack on its refinery complex.
Saudi Arabia is now redirecting some crude shipments via pipeline toward the Red Sea, while threats from Iran have brought tanker traffic through the Strait of Hormuz—a key global oil corridor—almost to a halt. Hundreds of tankers are reportedly stranded inside the Gulf or waiting outside the strait.
Countries prepare emergency measures
Governments around the world are also taking precautionary steps to manage the crisis.
Donald Trump, President of the United States, attempted to ease concerns over rising fuel costs after U.S. gasoline prices climbed 11% in one week.
Meanwhile, Japan, which relies on the Middle East for about 95% of its oil imports, has instructed one of its national storage facilities to prepare for a possible crude release—something the country has not done in three decades.
Other nations are introducing emergency measures as well. Vietnam has removed import tariffs on fuel, while Bangladesh temporarily shut universities to conserve electricity and fuel supplies.
At the same time, China has directed refiners to halt fuel exports and cancel previously planned shipments in order to secure domestic supply.
Adding to global concerns, Qatar, the world’s second-largest exporter of liquefied natural gas, has also suspended exports amid the escalating regional tensions.
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