Global energy markets are facing mounting pressure as the G7 countries consider tapping their strategic oil reserves to counter skyrocketing crude prices.
At the time of writing, Brent has since early trade dropped from $119 to $101 at 7:30 PM (Pakistan Standard Time) while WTI stands at $99 per barrel.
According to the Kobeissi Letter, the G7 may release up to 400 million barrels of oil, sending prices down nearly 20% in an effort to “buy time” after Iran closed the Strait of Hormuz for over 95% of its usual traffic.
A few moments ago, the G7 countries concluded their meeting on the subject but look nowhere near releasing the reserves.
The G7 collectively holds around 1.2 billion barrels of crude reserves, roughly equivalent to 60 days of oil flows through the Strait of Hormuz. The proposed 400 million barrel release could cover about 20 days of Strait of Hormuz supply, providing temporary relief to global markets. But this won’t change how the world’s leading economies will react when the extra time runs out.
Some argued on X that this measure carries significant risks. Should the Iran-US-Israel war persist beyond the depletion of these reserves, the world could face an unprecedented energy crisis.
US President Donald Trump’s strategy may have been aimed at buying just a few more weeks of market stability.
People are just beginning to realize how vulnerable things get once these emergency reserves run dry. Another X uuser opined that if Hormuz isn’t get unclogged before those G7 reserves run out, the next price spike starts from a much higher floor, possibly $140 per barrel, with nothing left to release.
Or you know…. you can stop fighting and killing innocent people in Iran for your boyfriend and our lord netayahu. He’s the real president of pakistan