G-7 signals readiness to act on oil market stability amid Iran conflict

(Bloomberg) - The Group of Seven (G-7) said it is prepared to take further measures to stabilize global energy markets, as volatility driven by the Iran conflict continues to ripple through oil and gas supply chains.

The statement followed a virtual meeting of finance and energy ministers, central bank leaders and representatives from the International Energy Agency (IEA), convened to assess the economic and financial impacts of the ongoing crisis.

“We stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market,” the G-7 said in a communique.

Earlier this month, the group agreed to support the use of strategic oil reserves to help address supply disruptions and market volatility. Individual member countries have also implemented domestic measures, including fuel subsidies for households and businesses. Japan is reportedly considering intervention in crude futures markets to ease pressure on both oil prices and the yen.

The surge in oil prices is contributing to rising inflation and slowing economic growth, while increasing uncertainty across financial markets. Central banks reiterated their commitment to maintaining price stability, noting that monetary policy will remain data-dependent as they monitor the impact of energy prices on inflation and economic activity.

The G-7 also emphasized the importance of maintaining secure and uninterrupted energy trade flows, including the protection of critical maritime routes, and called on countries to avoid imposing export restrictions on hydrocarbons.