G7 to release 100M barrels from emergency reserves over four months

G7 leaders agreed on Friday to immediately begin a coordinated release of 100 million barrels from emergency oil reserves over four months, responding to surging energy prices and market volatility exacerbated by ongoing geopolitical tensions, according to a statement issued after a virtual meeting of the group's leaders.

Emergency Release Details

The release, coordinated through the International Energy Agency, will include a "frontloaded substantial diesel release" by G7 members and partners within the first 20 days, according to the statement. The group said it would meet within the agency's framework in the coming days to discuss possible additional diesel releases if necessary.

"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the statement said. The leaders also agreed to coordinate maintenance schedules across G7 refineries to avoid simultaneous capacity shutdowns and temporarily increase utilization rates where possible, while the agency was asked to monitor implementation and deliver a follow-up report within 20 days.

EU Welcomes Coordinated Action

European Council President Antonio Costa welcomed the coordinated action, saying EU leaders would address the energy situation at their Oct. 15-16 meeting. "I welcome today's G7 coordinated measures in response to the global energy situation: a coordinated release through the IEA of 100 million barrels, beginning immediately and continuing over four months, with the release of diesel front-loaded, by G7 members and partners; a commitment to refrain from imposing export restrictions on energy and energy products between G7 countries, and a call on all producers to refrain from imposing bans that could exacerbate market tensions," Costa said in a post on the US social media platform X.

He said EU leaders will discuss "how we can alleviate the impact of rising energy prices on European citizens, businesses and industry" during the October summit. According to Costa, the crisis also highlighted the need to reduce dependence on fossil fuels and accelerate the transition toward homegrown energy sources.

Strait of Hormuz and Russia Sanctions

The G7 also called for the "immediate and full restoration" of navigational rights in the Strait of Hormuz, expressing its "determination to redouble our collective efforts to that end." The statement came as global energy markets face sustained pressure from supply disruptions and ongoing conflicts affecting key shipping lanes.

The group said it would maintain sanctions against Russia while working with the International Energy Agency and other partners to limit spillovers into fuel, gas and other commodity markets. The coordinated release aims to stabilize prices that have fluctuated amid concerns over supply constraints and regional instability affecting major transit routes.