G7 energy ministers to discuss soaring prices amid Iran war

G7 energy ministers will discuss soaring energy prices due to the war in Iran on a call on Tuesday while a group of European Union leaders will do so later in the day, officials said.

Oil prices surged to their highest levels since mid‑2022 on Monday propelled by fears of Gulf output cuts and disrupted tanker traffic.

G7 finance ministers said on Monday they were prepared to implement "necessary measures" in response to the price surge but stopped short of committing to coordinated emergency releases of reserves.

Even before the Iran crisis, European energy prices typically sat higher than those in the US and China. European Commission chief Ursula von der Leyen has promised to propose measures to tackle the issue at an EU summit next week.

Read: Iran says oil blockade will continue until attacks end, Trump threatens to hit harder

Tuesday's G7 call is scheduled for 1245 GMT. French Finance Minister Roland Lescure, whose country holds the G7 presidency this year, said there were currently no supply problems in either Europe or the United States.

The G7 comprises the United States, Canada, Japan, Italy, Britain, Germany and France. Italy, Germany and France are also EU members.

EU leaders in the evening will discuss competitiveness, including energy prices, on a call with German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Belgian Prime Minister Bart De Wever and others.

The EU imports more than 90% of its oil and around 80% of its gas, making European countries highly exposed to fluctuations in global oil and gas prices.

EU commissioners discussed potential measures last Friday including changes to energy taxes and amending the EU carbon price, which accounts for roughly 11% of industries' power costs, a Commission document seen by Reuters showed.