Oil prices rise as G7 ministers to meet on strategic reserves and Iran war – National
Germany’s finance ministry said on Monday that G7 finance ministers would meet later in the day to discuss the impact of the Iran war.
Oil prices rose to near US$120 per barrel before retreating on Monday as the war with Iran escalated, threatened production and shipping in the Middle East and rattled financial markets.
The price of a barrel of Brent crude, the international standard, rose to $119.50 a barrel early in the morning but was later trading near $106 a barrel, up 14 percent, before the opening bell.
West Texas Intermediate, a sweet, crude oil produced in the United States, rose above $119.48 a barrel but eased to near $103.
The cost of the war on civilian targets increased as Bahrain accused Iran of attacking its drinking water desalination plant.
Bahrain’s national oil company has declared force majeure for its exports after an Iranian attack set fire to its refinery. A statutory declaration relieves the company of contractual obligations due to extraordinary circumstances.
Oil depots in Tehran went up in smoke following overnight Israeli strikes.
Oil prices have soared as the war, now in its second week, has seized countries and territories important to the production and movement of oil and gas in the Persian Gulf.
Prices were moderated after the Financial Times reported that some members of the Group of Seven industrial nations were considering releasing strategic oil reserves to ease pressure on markets.
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French President Emmanuel Macron said on Monday that “the use of strategic reserves is a possibility.” He said G7 leaders could meet this week to coordinate a response to rising electricity prices.
France currently holds the presidency of the G7 group. Separately, finance ministers from the G7 countries met on Monday via video conference to discuss the effects of the war.
On Saturday, US President Donald Trump downplayed the idea of tapping into the US Strategic Petroleum Reserve, saying US supplies are sufficient and prices will drop soon.
About 15 million barrels of crude oil – about 20 percent of the world’s oil – are typically shipped daily through the Strait of Hormuz, according to independent research firm Rystad Energy. The threat of Iranian missile and drone attacks has stopped tankers carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran from passing through the port, which is located on the northern border with Iran.
Iraq, Kuwait and the UAE have cut oil production as storage tanks fill due to reduced crude export capacity. Iran, Israel and the United States have also attacked oil and gas facilities since the war began, further exacerbating supply concerns.
Rising oil and natural gas costs are pushing up fuel prices, which are affecting other industries and the sluggish Asian economies that are most vulnerable to the region’s heavy reliance on imports from the Middle East.
Iran exports an estimated 1.6 million barrels of oil a day, mainly to China, which has called for an immediate end to hostilities. Beijing may need to look elsewhere for supplies if Iranian exports are disrupted, another factor that could push up energy prices.
“All sides have their own responsibility to ensure that the current situation is stable and smooth,” Chinese Foreign Ministry spokesman Guo Jiakun said at a briefing on Monday.
“China will take necessary measures to protect its energy security.”
South Korean President Lee Jae Myung warned Monday of tough penalties for refiners and fuel stations caught collecting or rigging prices, saying it would be wise to find alternative supply routes that must pass through the Strait of Hormuz.
Across Southeast Asia, rising prices have led to long lines outside filling stations.
“High oil and gas prices will affect everyone and our economy,” said Le Van Tu, who was waiting outside a gas station in Vietnam’s capital, Hanoi.
“All jobs, including those that use fuel for transportation will be affected.”
South Korea’s Kospi fell six percent to 5,251.87.
The last time Brent and US crude futures traded close to current levels was in 2022, after Russia invaded Ukraine.
Higher energy costs are driving up inflation, straining household budgets and reducing consumer spending, which is the backbone of many major economies. Those worries have fed into financial markets, causing stock prices to plummet.
In Canada, the national gas price as of early Monday is sitting at C$1.54 as published, up from about $1.32 a week earlier, according to the CAA.
In the US, the average price of a gallon of regular gasoline rose to $3.48 as of early Monday, up nearly 50 cents from last week, according to the AAA auto club.
Diesel, which is used mainly in shipping, is selling for about $4.66 a liter, a weekly increase of more than 80 cents.
The price of natural gas in the US also rose during the war, although not as much as oil. It was selling for about $3.34 per 1,000 cubic feet early Monday. That’s up from Friday’s closing price of $3.19.
– Via files from Reuters and Global’s Ariel Rabinovitch
© 2026 The Canadian Press
