G7 energy ministers will hold a call on Tuesday to discuss sharply rising energy prices triggered by the ongoing war in Iran, officials said. A separate call later in the day will see European Union leaders addressing similar concerns, reflecting heightened global anxiety over fuel supply and costs.
Oil prices surged to their highest levels since mid-2022 on Monday, driven by fears of reduced Gulf output and disruptions to tanker traffic through key shipping routes. Even before the Iran conflict, European energy prices were generally higher than those in the United States and China.
G7 Prepares Response, But Stops Short of Releases
G7 finance ministers signalled readiness to take “necessary measures” in response to the price surge but did not commit to coordinated emergency releases of strategic oil reserves.
The G7, which includes United States, Canada, Japan, Italy, Britain, Germany, and France, will hold the call at 1245 GMT. French Finance Minister Roland Lescure, whose country holds the G7 presidency this year, said that Europe and the U.S. currently do not face immediate supply shortages.
EU Leaders Target Competitiveness and Energy Costs
Later on Tuesday, EU leaders will discuss energy prices and competitiveness, joining German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Belgian Prime Minister De Wever, and others.
The EU is highly exposed to global energy volatility, importing more than 90% of its oil and roughly 80% of its gas. EU Commission President Ursula von der Leyen has pledged proposals at next week’s EU summit to address rising prices.
Officials have already discussed measures including adjustments to energy taxes and potential amendments to the EU carbon price, which contributes around 11% to industrial power costs.
Coordinated Action Sought but Uncertain
The calls by the G7 and EU reflect a growing urgency to manage energy price shocks caused by the Iran war. While governments have the tools to intervene, officials are balancing the need to stabilize prices with broader fiscal and strategic considerations.
With oil and gas markets highly sensitive to geopolitical developments, both G7 and EU leaders face pressure to act quickly to prevent price spikes from translating into economic slowdowns or political unrest across their regions.
With information from Reuters.