European governments are weighing emergency measures including tapping oil reserves to combat soaring energy prices triggered by Middle East conflict. G7 finance ministers signaled readiness to release strategic stockpiles as oil prices neared $120 per barrel before retreating on Trump's comments about a swift war resolution.

Officials from G7 nations are coordinating what could be one of the largest strategic oil reserve releases in history. The move aims to counter production losses from Iranian blockades and regional instability. EU economy commissioner Valdis Dombrovskis noted discussions remain preliminary, with energy ministers expected to approve action this week.

The US recently waived sanctions on Russian oil to allow India purchases, angering European allies who insist the oil price cap must remain. Meanwhile, Ukraine's refusal to allow EU inspectors access to a damaged Russian pipeline has frustrated Brussels, potentially jeopardizing a €90bn aid package and geopolitical support at a critical juncture.