Representatives of the seven most developed economies in the world (G7 — the USA, the UK, Germany, France, Italy, Canada, and Japan) discussed this issue, and their joint statement noted: "We are ready to take necessary measures to support global energy supply, including the release of reserves."
However, French Finance Minister Roland Lescure clarified that the decision to use national reserves has not yet been made. "We have not yet reached that stage," he noted at the end of a video conference held on March 9, adding that if necessary, they will use all available means to stabilize the market.
IEA Confirms Oil Market Crisis
Lescure also reported that work to monitor the situation in the oil market will continue in the coming days. Fatih Birol, the head of the International Energy Agency (IEA), was also present at the meeting and indicated the deterioration of the situation in global oil markets.The countries within the IEA hold more than 1.2 billion barrels of strategic oil reserves, along with an additional 600 million barrels of industrial reserves. These countries typically release their strategic reserves in crisis situations to stabilize the market or respond to supply shortages, although they do so quite rarely.
The press service of the European Commission reported on the same day that, despite supply disruptions, EU countries have sufficient oil and gas reserves. "We are more concerned about high energy prices than supply security," their statement said.
Oil Prices Exceed $100, Iran Threatens Price Increases
As a result of the conflict between the USA and Israel with Iran and the effective blockade of the Strait of Hormuz, oil prices have exceeded $100 for the first time since 2022. At the beginning of trading on March 9, Brent crude oil futures on the London exchange temporarily increased by nearly 26%, reaching $116.6 per barrel (159 liters), according to Reuters.On March 7, Israel attacked Iran's oil infrastructure for the first time, striking five energy facilities in Tehran and its surroundings. In response, the Islamic Revolutionary Guard Corps (IRGC) threatened to attack oil facilities in the Gulf states. "If you are ready for oil prices above $200 per barrel, go ahead," the IRGC press service quoted The Guardian.
On February 28, Israel and the USA struck Iran. Donald Trump announced plans to destroy the nuclear program of the Islamic Republic.
Iran responded with strikes on Israeli territory and other countries in the Middle East where US military bases are located. Strikes were carried out on Bahrain, Qatar, Kuwait, Abu Dhabi, and Dubai (UAE), as well as Riyadh (Saudi Arabia).
As a result of the US-Israeli operation, Iran's Supreme Leader Ayatollah Ali Khamenei was killed. His wife, Mansure Khodjaste, also died from her injuries.
Donald Trump stated that military actions in Iran would last about four weeks, while Iran declared jihad against the USA and Israel, emphasizing that negotiations are not planned.
The current situation in the Middle East has global consequences, including for Kyrgyzstan. Currently, thousands of tourists are stranded in the UAE due to the conflict. Contact numbers for embassies and consulates for Kyrgyz citizens abroad can be found here.
