France warns against tapping oil reserves too quickly amid Mideast turmoil

LONDON

France’s economy minister has urged caution over the use of strategic oil reserves, warning that supplies must be preserved in case of a prolonged conflict in the Middle East.

Roland Lescure said Europe and the G7 should “keep ammunition” in the form of emergency stockpiles rather than releasing them too quickly in response to current market pressures.

Speaking to CNBC Europe on Wednesday, he stressed the importance of preparing for multiple scenarios while avoiding overreaction.

“What we need to make sure of is that we are preparing for these scenarios,” he said. “We are monitoring them, we are tracking them, and making sure that we react accordingly, not too quickly, not too strongly either.”

His comments come amid concerns that disruptions to oil transport through the Strait of Hormuz could continue, putting sustained pressure on global energy markets.

Lescure suggested that the prospect of a short-lived conflict had diminished, increasing the likelihood of prolonged instability affecting hydrocarbon flows.

Strategic reserves, which he said could cover around 108 days of shortages, are being treated as a critical buffer.

He warned, however, that stockpiles are only a temporary measure and cannot replace normal supply routes.

“We know that the only way to free up the oil market is to see oil flow through the Strait of Hormuz. You can’t replace flows with stocks. This is a one-off measure,” he said.

Despite rising prices, he insisted there was no immediate shortage of oil in Europe or North America.

Tensions in the Middle East have escalated since the US and Israel launched a joint offensive on Iran on Feb. 28, which has killed around 1,300 people so far, including then-Supreme Leader Ayatollah Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq and Gulf countries, which it says host US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.

The Strait of Hormuz has been at the center of global energy concerns since Iran’s Islamic Revolutionary Guard Corps announced its closure to most vessels in retaliation for the US-Israeli attacks.

Before the conflict, around 20 million barrels of oil passed through the strait daily. Its disruption has pushed oil prices higher.

Brent crude remained above $100 per barrel as the war entered its third week with little sign of de-escalation.