Reeves to Join Emergency G7 Meeting as Oil Hits $116

Published: March 30, 2026. The English Chronicle Desk. The English Chronicle Online—Providing trusted news and professional analysis for the UK.

Chancellor Rachel Reeves is set to join an emergency virtual summit of G7 finance ministers and central bank governors today, as global oil prices surged to $116 a barrel following a weekend of escalating rhetoric from Washington. The meeting, which will also include Energy Secretary Ed Miliband, comes at a critical juncture for the global economy. Brent crude, the international benchmark, jumped more than 3% in early Monday trading, its highest level in nearly two weeks, after U.S. President Donald Trump suggested in an interview with the Financial Times that he was considering “taking the oil” in Iran and potentially seizing the vital export hub of Kharg Island.

The Chancellor is expected to use the G7 forum to advocate for a dual-track response to the energy shock. Sources close to the Treasury indicate that Ms. Reeves will call for an immediate, coordinated effort to stabilize the fossil fuel market while simultaneously urging G7 nations to “redouble” their commitment to homegrown clean energy to break the cycle of dependence on volatile Middle Eastern supplies. This meeting follows the International Energy Agency’s (IEA) historic decision earlier this month to release 400 million barrels of strategic reserves—the largest in its history—to counter the blockade of the Strait of Hormuz. Despite that intervention, the “Trump premium” and fresh reports of Houthi missile strikes on Israel have kept the markets in a state of high-voltage anxiety.

The domestic stakes for the Chancellor are immense. With UK petrol prices already climbing above 150p per litre for the first time in two years, the Treasury is under intense pressure to cancel a planned 5p rise in fuel duty scheduled for later this year. While Ms. Reeves has previously warned retailers against “price gouging,” the opposition has labeled the government’s response as insufficient. The Conservative Party has used the latest spike to launch a new “pro-drilling” campaign, arguing that the only way to ensure UK energy security is to maximize North Sea production. However, the Chancellor remains firm that “stability is the most important thing,” and that a pivot toward renewables is the only long-term solution to the inflationary “gut-punch” delivered by the current conflict.

As the G7 ministers gather, the prospect of oil hitting $150 a barrel—a level analysts warn could trigger a full-blown global recession—hangs over the deliberations. While some European allies have discussed the possibility of an oil price cap similar to the one imposed on Russia in 2022, diplomats have tempered expectations, suggesting the group is “not there yet” on such a radical measure. For now, the focus remains on “any necessary tools” to reassure jittery markets. For Rachel Reeves, today’s meeting is not just about global diplomacy; it is a desperate attempt to protect a fragile UK recovery from being smothered by the rapidly rising cost of the world’s most essential commodity.

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