By Our Correspondent

G7 nations are convening an emergency meeting on Monday to tackle surging oil prices and market turmoil caused by the ongoing US-Israeli conflict with Iran.

The unprecedented gathering of finance ministers, including UK Chancellor Rachel Reeves, comes as Brent crude surpassed $100 a barrel, and global stock markets plunged amid fears of prolonged disruptions to energy supplies.

The conflict has sharply reduced oil shipments through the strategic Strait of Hormuz, which handles roughly a fifth of the world’s crude.

On Monday, Brent crude briefly jumped 25% to $119.50 per barrel before settling near $107, while US West Texas Intermediate (WTI) crude traded around $104 a barrel.

UK gas futures also soared by nearly 25%, reaching 171p per therm, before easing to 156p.

The G7’s emergency talks may consider coordinated releases from petroleum reserves, guided by the International Energy Agency (IEA), marking the first such action since 2022, when the global community responded to Russia’s invasion of Ukraine.

Analysts warn that disruptions in the Gulf could drive inflation higher, limiting central banks’ ability to reduce interest rates.

Iran escalated the crisis by naming Mojtaba Khamenei as successor to his father, Ali Khamenei, confirming hardline leadership amid continued US and Israeli airstrikes on Iranian oil depots.

In retaliation, Iran targeted energy infrastructure in neighboring Gulf states, while Saudi Arabia intercepted multiple drone attacks on its oil fields.

Global markets have responded sharply: Europe’s Dax and Cac 40 fell about 2.5%, London’s FTSE 100 dipped 1.5% with oil giants BP and Shell as rare gainers, and Asia saw dramatic losses with Japan’s Nikkei 225 down 5.2% and South Korea’s Kospi plunging 6%, triggering a temporary circuit breaker to curb panic selling.

Experts highlight the volatility is linked to halted production and the expectation of a protracted conflict.

US President Donald Trump downplayed the impact on oil prices, stating that short-term increases are “a small price to pay for US and global security,” while Americans face gasoline costs averaging $3.32 per gallon, up 11% from last week.