G7 welcomes potential record release of oil reserves

G7 nations have said they would support the collective release of oil from their reserves to tackle soaring prices since the start of the US-Israel war with Iran.

The group of countries has been meeting with the International Energy Agency (IEA), which is reported to be readying its biggest ever intervention in the oil market on Wednesday afternoon.

The conflict has caused oil exports through a key waterway south of Iran to virtually stop and production in the region to slump.

Prices have jumped since the conflict started but stabilised following reports that oil could be released from countries' stockpiles though some experts say the move would only be a short-term solution.

According to reports, the IEA could release 300 to 400 million barrels of oil — more than double the amount it released following Russia's full-scale invasion of Ukraine in early 2022.

Following a meeting with the IEA on Wednesday, G7 energy ministers said: "In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves."