G-7 Panic? World Leaders Weigh Emergency SPR Dump As Oil Prices Erupt Into Triple-Digit Territory

Asian and European equities traded lower, while U.S. equity futures fell 1% as Brent and WTI futures traded in triple-digit territory following the weekend escalation in Middle East tensions. The energy shock we have been warning about for the past week, citing top institutional desks from JPMorgan, UBS, Goldman, and others, is now staring G-7 leaders directly in the face as energy market panic erupts.

You know conditions are deteriorating very quickly when the Financial Times reports that G-7 finance ministers are set to hold an 8:30 a.m. New York time call to discuss a possible coordinated release of strategic oil reserves to combat runaway crude prices, as Brent crude hit $119/bbl overnight. Such a move to dump SPR on global markets shows just how afraid policymakers are that the oil shock could crush consumer sentiment and, in turn, hit economic growth.

There have been five coordinated SPR dumps onto the global market with the International Energy Agency. The last two occurred in 2022, in the early days of the Russian invasion of Ukraine, which sent energy prices through the roof. However, as we must note, dumping SPRs in 2022 did not work so well, and the market will likely look beyond current flows and focus on overall stockpiles being drained (read: here & here).

Hello @ENERGY it’s time to open the SPR

— zerohedge (@zerohedge) March 9, 2026

The scramble by G-7 leaders comes as Brent crude hit $119/bbl in Asia, up from about $72 before Operation Epic Fury kicked off more than a week ago, now in its second week. With the Strait of Hormuz effectively closed and Gulf producers cutting output as storage fills up, the worst-case scenario appears to be unfolding: an energy shock.

To cushion the shock, potentially bridging some of the supply gap of a short-term war (but definitely not a longer term or wider disruption) FT sources said world leaders could release 300 million to 400 million barrels, or about 25% to 30% of the 1.2 billion-barrel reserve.

Given the extreme moves, any announcement is likely to move prices (and indeed is already being somewhat discounted) but the question remain of whether that will actually impact the cost of pump prices in America (which are set to soar to $5 a gallon, however briefly, on a lagged response to WTI and RBOB price surges currently).

As Goldman’s Rich Privorotsky noted:

Such a release would buy time. If the disruption proves temporary, a coordinated SPR release makes sense. If the disruption persists for months, those reserves might arguably be more valuable at higher prices or in a more acute shortage 

WTI is down $20 from its overnight highs on the report of the coordinated SPR release…

Late last week, JPMorgan’s top commodity strategist, Natasha Kaneva, did the ‘Hormuz Math‘ and warned that production shut-ins were imminent – hence the weekend production cuts by major Gulf states and Brent crude spiking into triple-digit territory.

Additionally, energy economist Anas Alhajji warned UBS analysts last week about SPR limitations:

“The impact of the U.S. SPR is limited. Saudi Arabia is completely out of the picture. All of that spare capacity in OPEC is out of the picture. So what do we do? We are then left relying on demand destruction to curb prices. And because of the panic buying, prices would go above $100 easily in this scenario.”

Even if the conflict in the Middle East ended today, Alhajji explained that returning Gulf oil and gas production to a ‘normal state’ would take two months because of logistical and technical issues. This only implies that an energy shock has begun. Deutsche Bank warned in recent days that this was an “existential threat” to airlines, and next could very well be a shock to consumers. The only question now is whether the shock is big enough to cause a financial blow to countries that are among the largest importers of crude from the Gulf region, such as China and other Asian countries.