G7 countries were confused by Trump, whether to release oil reserves or not?
According to insiders, the position changed within a few hours. According to an insider disclosure by the Wall Street Journal, at the initial G7 emergency energy meeting, the U.S. representative took a strong and clear stance: telling allies that there was no need to release strategic oil reserves at this time. The market supply was sufficient, and there was no need to use the country's "life-saving granary." Early intervention could disrupt price signals.
This statement relieved European and Japanese representatives, as their own reserves were not obtained for free, and it was better to save if possible. However, the script was completely rewritten within a few hours. On the same afternoon after the meeting, international oil prices experienced abnormal fluctuations, and rumors spread that tensions in the Strait of Hormuz had suddenly escalated — intelligence indicated that this key waterway might face a risk of closure.
The original instruction of "no need to release" suddenly turned into "immediately coordinate with allies to take action." According to insiders, within a few hours, the White House completed a 180-degree turn from "opposing the largest oil market intervention in history" to "coaxing or pressuring allies to push forward this action." This speed left G7 diplomats who were preparing to return home unprepared.
A senior European official privately described the feeling as being "forcibly pulled onto a high-speed train without brakes," where just a second ago they were discussing standing by, and then suddenly were required to open the oil reservoirs.
Why did the U.S. self-contradict so quickly? Dao Ge believes it is due to the intense collision of two forces: fear of losing control and the obsession with dominance. First, the market's overreaction to sudden geopolitical crises. The Strait of Hormuz, as the throat of global oil transportation, any small incident can trigger a sharp rise in oil prices.
When the Pentagon captured the signal of "possible closure," the instant jump in oil prices triggered the sensitive nerves of the White House. For Trump, who places great emphasis on stock market performance and inflation data, uncontrolled oil prices mean voter dissatisfaction, which is an absolute risk that cannot be tolerated. Thus, the previous decision was quickly replaced by panic. In short, it's because they had no plan and no relevant response strategy.
Original article: toutiao.com/article/1859510103407628/
Statement: This article represents the personal views of the author.