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Nazrin Abdul

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Energy ministers of the Group of Seven (G7) countries will hold talks on the current situation in the global oil and gas market amid rising geopolitical tensions. As reported by AzerNEWS, the meeting will take place today via videoconference.

The ongoing tensions in the Middle East and the closure of the Strait of Hormuz continue to create significant uncertainty globally and increasing risks for oil markets. The situation has already pushed several Middle Eastern and Gulf producers to reduce oil output. Meanwhile, Egypt has raised prices for petroleum products and natural gas by 15–30 percent.

Despite the tensions, officials say there are currently no disruptions to oil and gas supplies in the United States and Europe. However, several Asian countries, including Thailand, Bangladesh, India and Vietnam, are facing difficulties securing urgent shipments of liquefied natural gas (LNG). While many countries have managed to secure LNG supplies for this month, some cargoes were purchased at significantly higher prices. LNG prices have more than doubled since the conflict in the Middle East began.

Earlier, during a meeting of G7 finance ministers, the impact of the Middle East conflict on the global economy was also discussed. Ministers said they are ready to take necessary steps to support energy supply, including the possible use of strategic oil reserves if needed. They also assessed whether additional measures to reduce energy costs are required following the closure of the Strait of Hormuz. According to the ministers, the G7 has already responded in a coordinated manner to rising oil prices with necessary measures aimed at stabilizing global energy markets.