The British government has signalled it is prepared to release emergency oil reserves as tensions with Iran threaten to disrupt global energy supplies and push prices higher.
Chancellor Rachel Reeves told the Treasury Select Committee that the United Kingdom is ready to take part in a coordinated effort with international partners if necessary. The move is aimed at stabilising the oil market and preventing a deeper energy crisis.
Speaking to MPs, Ms Reeves said Britain was willing to support any joint action designed to protect supply. She explained that releasing strategic reserves could help calm the market and reduce pressure on oil prices.
“The UK is willing to play its part in using those reserves to put downward pressure on oil prices and ensure that supply remains strong,” she told the committee.
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The comments came as finance ministers from the Group of Seven (G7) nations met earlier this week to discuss possible emergency measures. Energy ministers from the same group later said they supported, in principle, the use of strategic oil stockpiles if the situation worsens.
The discussions follow growing fears that the conflict involving Iran could disrupt one of the world’s most important shipping routes for energy supplies. Nearly a fifth of global oil and gas exports move through the Strait of Hormuz, the narrow waterway linking the Persian Gulf with the Gulf of Oman.
Iran has warned that it could target ships using the route, raising concerns among governments and energy markets. British security officials reported that a cargo vessel travelling through the strait was struck overnight by what they described as an “unknown projectile”. The incident has added to fears that the conflict could spill into vital trade routes.
The oil market has already shown signs of instability. Crude prices swung sharply between 86 and 91 dollars per barrel after the United States escalated its military campaign against Iran. Washington carried out air strikes on underground missile facilities believed to be used by the Iranian regime.
Against this backdrop, the International Energy Agency (IEA) has reportedly proposed a major coordinated release of global oil reserves. According to reports, the Paris-based agency is considering a release even larger than the 182 million barrels placed on the market in 2022 after Russia invaded Ukraine.
The IEA, created in 1974 after the Arab oil embargo, works with member countries to manage strategic petroleum reserves and coordinate emergency responses during supply shocks. Its 32 member nations are expected to discuss the proposal further this week.
Despite the growing tensions, officials have so far stopped short of immediately releasing reserves. During Monday’s meeting between G7 finance ministers and the IEA, governments resisted early calls to tap into their stockpiles while they continue to monitor developments in the Middle East.
However, analysts say the option remains firmly on the table. If the Strait of Hormuz were to face prolonged disruption, global oil supplies could tighten rapidly, pushing energy prices higher and adding new pressure on inflation and economic growth.
For Britain and its allies, releasing emergency reserves may become a key tool to steady markets and reassure consumers if the crisis deepens.
