G7 vows ‘all necessary steps’ to stabilise energy markets as crude oil surges to $116 amid escalating West Asia war

G7 ministers, after an emergency meeting, issued a stern warning on Monday (March 30) against "unjustified export restrictions" on hydrocarbons, as the group moved to stabilise the global economy reeling from the ongoing war in West Asia. The bloc vowed to take "all necessary measures in close coordination with partners" to preserve the "stability and security of the energy market."

In a rare joint communiqué involving finance ministers, energy ministers, and central bank chiefs, the group signalled its readiness to intervene further in energy markets to prevent a full-scale global recession.

"We call on all countries to refrain from imposing unjustified export restrictions on hydrocarbons and related products," it said in a statement released after emergency talks.

The Group of Seven (G7) is a powerful bloc of advanced Western economies, including the United States, the United Kingdom, France, Germany, Italy, Canada and Japan. The meeting was convened as Brent crude oil prices surged past $116 per barrel on Monday, marking one of the highest monthly gains in history.

The energy crisis was triggered by Iran's effective closure of the Strait of Hormuz, a vital waterway through which nearly 20 per cent of global oil transits, in retaliation for a joint US-Israeli bombing campaign against the Islamic Republic on February 28.

The campaign aimed at sparking regime change in Tehran through decapitation strikes against top Iranian leadership, killing key figures including Supreme Leader Ayatollah Ali Khamenei and other senior officials; however, it did not yield a favourable outcome.

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Oil and gas prices were further aggravated by Iran's strikes on energy facilities across Gulf nations, mostly US allies hosting its military bases, in response to US-Israeli attacks on its own energy facilities, including the key oil export hub at Kharg Island.

However, President Trump on Monday claimed that the US is in serious discussions with the new Iranian regime to end military operations in the Islamic Republic. He also reiterated his warning to hit "electric generating plants, oil wells and Kharg Island" if the Strait of Hormuz does not "open for business".

Beyond energy supply, the ministers addressed the threat of war-induced inflation, noting that "G7 central banks are strongly committed to maintaining price stability" and that monetary policy will remain strictly "data-dependent."

The session concluded with a pledge to "continue to exchange information and coordinate closely" within the G7 and with international partners, as the members remain prepared to meet again at any time to respond to further developments in the ongoing conflict.

Japan's Finance Minister Satsuki Katayama, after the meeting, said that G7 nations should be prepared to unlock more emergency oil supplies to help stabilise prices, even as the International Energy Agency’s 32-member countries announced they would release nearly 400 million barrels of emergency crude.

(Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)