This represents a significant pivot in US policy, serving as a direct response to the crude oil price rally ignited by the conflict in the Middle East, which threatens the global economy with an inflationary shock. Simultaneously, the Saudi giant Saudi Aramco is deploying contingency plans. With the Strait of Hormuz effectively closed, Riyadh is redirecting millions of barrels through the Red Sea and resorting to rare spot market auctions in a bid to bypass the geopolitical blockade and secure the flow of "black gold" to international markets.
Coordination between G7 and IEA
In more detail, G7 finance ministers will discuss a potential joint release of oil from strategic reserves in coordination with the International Energy Agency (IEA) during an emergency meeting today, Monday (March 9, 2026), aimed at addressing the spike in oil prices following the conflict in the Gulf. According to reports from the Financial Times, ministers and Fatih Birol, Executive Director of the IEA, will discuss the impact of the war in Iran. Three G7 nations, including the US, have so far expressed support for the initiative.
The 32 members of the IEA maintain strategic reserves as part of a collective emergency system designed for oil price crises. A source told the FT that some US officials believe a joint release in the range of 300-400 million barrels—representing 25% to 30% of the 1.2 billion barrels in total reserves—would be appropriate.
Pressures on Trump over oil prices
The meeting takes place as US President Donald Trump faces mounting pressure to halt the sharp rise in crude oil prices since the war began. The surge in oil prices last week triggered global side effects, threatening an inflationary spike that could cause lasting damage to economic growth worldwide. China, India, South Korea, Japan, Germany, Italy, and Spain are among the largest importers of crude, leaving them particularly exposed to price shocks.
Brent crude soared by 24% during Asian trading on Monday (March 9, 2026) to $116.71 per barrel, though it later retreated to a 19% gain at $110.85 following news of the G7 meeting. West Texas Intermediate (WTI), the US benchmark, rose 28% to $116.45 before settling around $108, marking an increase of nearly 19%.
The role of strategic reserves
Emergency oil stockpiles were established as part of the IEA's founding in 1974, following the Arab oil embargo which caused crude prices to skyrocket and led to major fuel shortages across the Western world. The reserves are designed to allow major oil-consuming nations to respond to significant energy shocks. There have been five collective releases by IEA member states since the organization's inception. The last two occurred in 2022 to counter the rise in oil prices following Russia's invasion of Ukraine.
During an emergency IEA meeting, a document prepared for the session stated that the IEA remains "ready to act to support the stability of oil markets." The confidential document noted that IEA countries held more than 1.24 billion barrels of public reserves, in addition to approximately 600 million barrels of industrial stocks that could bring additional supply to the market if required. These reserves could cover nearly a month of total oil demand in IEA countries and over 140 days of net imports. The US and Japan account for approximately 700 million barrels of the 1.24 billion total.
A 180-degree turn by the US
The decision to consider using strategic oil reserves marks a 180-degree turn for the Trump administration, which stated last week that a release from the stockpile would not be necessary to stabilize markets. However, energy analysts noted that the historic surge in oil prices over the past week left policymakers with few options other than releasing strategic reserves to attempt to calm the markets.
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