A sudden shock to the world’s oil arteries has pushed major economies toward an emergency response, with a potential G7 oil reserve release now under active discussion among global leaders.

Energy ministers from the Group of Seven nations are scheduled to hold a virtual meeting Tuesday morning to weigh whether tapping strategic oil stockpiles could stabilize markets rattled by the war involving Iran and disruptions in the Strait of Hormuz, according to sources familiar with the talks.

The meeting follows a separate discussion Monday among finance ministers from the Group of Seven, who debated the idea but stopped short of announcing a final decision.

G7 Leaders Signal Readiness to Act

The G7 includes Canada, France, Germany, Italy, Japan, United Kingdom, and the United States — economies that collectively wield enormous influence over global energy policy.

Sources told CNBC that the talks have so far been “positive,” signaling growing momentum behind a coordinated move.

Any official decision on a G7 oil reserve release would likely follow Tuesday’s meeting of energy ministers, the sources said.

“We stand ready to take necessary measures, including to support global supply of energy such as stockpile release,” G7 finance ministers said in a statement issued after their Monday session.

Massive Oil Release Under Consideration

Officials familiar with the discussions say Washington is advocating a significant release of crude oil from emergency reserves.

According to sources, the United States believes a coordinated release of 300 million to 400 million barrels could help ease the crisis.

Such a move would represent roughly 25% to 30% of the 1.2 billion barrels collectively held in strategic reserves among participating nations.

The proposal reflects the scale of the current disruption — a supply shock that analysts say could ripple through global markets like a tremor beneath the world’s energy foundation.

Oil Prices Surge Past $100

Markets have already reacted sharply to the escalating tensions.

Oil prices briefly surged above $100 per barrel as the strategically vital Strait of Hormuz — a narrow shipping corridor connecting the Persian Gulf to the global ocean — remains effectively closed amid threats from Iran.

Roughly 20% of the world’s oil consumption typically flows through this critical waterway.

However, expectations that governments may unleash emergency reserves cooled prices slightly Monday.

U.S. crude oil was trading around $95 per barrel, while the global benchmark Brent crude hovered just below $100.

A Historic Supply Shock

According to analysts at consulting firm Rapidan Energy Group, the closure of the strait has triggered what could become the largest oil supply disruption in modern history.

The situation is particularly severe because key Gulf producers cannot access global markets.

With the waterway blocked, exports from Saudi Arabia and the United Arab Emirates are effectively stranded inside the Persian Gulf, analysts said.

Unlike previous energy shocks, the world currently has little spare production capacity available to offset the loss.

Strategic Reserves Face Limits

Even the United States’ vast emergency oil stockpile may not fully cushion the blow.

The U.S. Department of Energy reports that the Strategic Petroleum Reserve currently holds about 415 million barrels of oil.

That amount represents roughly 58% of its authorized capacity of 714 million barrels.

Rapidan analysts warn that the reserve alone cannot replace the massive supply trapped inside the Persian Gulf.

Global Energy Agencies Under Pressure

Because of that reality, analysts say countries belonging to the International Energy Agency may face mounting pressure to coordinate the release of their strategic reserves.

“This is the only remaining supply response option,” Rapidan analysts said.

The coming hours could therefore prove critical for global energy markets.

If the G7 moves forward with a coordinated G7 oil reserve release, it could temporarily calm markets and restore some stability to the world’s energy supply chain.

But until the Strait of Hormuz reopens, the global oil market may remain balanced on a razor’s edge — one geopolitical shock away from another price surge.