Energy prices have skyrocketed across the globe since the start of the conflict which has seen the Strait of Hormuz effectively blocked by Iran.
Oil prices spiked again earlier today to around $116 per barrel, close to the highest level since the start of the war.
Governments around the world are facing tough choices on how to tackle the energy crisis which is putting pressure on consumers.
Finance leaders from all G7 nations have said they stand ready to take “all necessary measures” to safeguard energy market
stability and limit broader economic spillovers from recent
volatility.
G7 member Japan told its counterparts this afternoon that it was watching market moves with a high sense of urgency.
Japanese finance minister Satsuki Katayam said after the meeting of G7 finance leaders this afternoon that they agreed “we cannot let this drag on”.
The Japanese government is using 800bn yen (£3.8bn) of reserve funds for subsidies to try and keep gas prices at an average of around 170 yen per litre, in a measure that could cost as much as 300bn yen per month.
Other G7 members also have some measures in place to try and protect consumers from huge price shocks…
UK
Ofgem’s energy price cap means most UK households on the energy are protected from the impact of higher prices until the end of June.
But Chancellor Rachel Reeves has announced £53m in funding for low-income off-grid households using heating oil who have already been impacted by price rises.
For households generally, Reeves has indicated that targeted support for those most in need is being considered rather than sweeping cost of living measures, which would be considerably more expensive.
Sir Keir Starmer is also holding talks with Britain’s largest energy suppliers this afternoon amid the spike in energy prices.
Germany
The German government said it would curb frequent price hikes by allowing petrol stations to increase prices only once per day at midday, while allowing them to cut prices at any time.
Breaches can be punished with fines of up to €100,000 (£86,900).
Berlin has not announced any plan to subsidise prices.
France
Paris has announced more than €70m in fuel subsidies for the transport, farming and fishing industries for April in addition to a €153 energy voucher for 3.8 million low-income households to help pay their bills.
French Prime Minister Sebastien Lecornu announced earlier that the voucher scheme would be broadened to 700,000 more households from May.
Italy
The Italian government has allocated around €417m (£363m) to cut excise duties on petrol and diesel until 7 April.
However, prices have changed little and industry lobbies are calling for more effective steps.
Some countries outside the G7 have also introduced measures to reduced the financial burden on consumers…
Australia
The Australian government announced that fuel excise would be reduced by half for three months, with changes expected from Wednesday.
Australia is also pausing a road user charge on
heavy vehicles for three months.
Philippines
Protests have erupted over fuel prices as the country suffers from a critically low energy supply, with a national state of emergency declared.
The Philippines is working with the US to secure waivers and exemptions to allow it to obtain oil from US-sanctioned countries.
The energy ministry also said it was activating a 20bn peso (£249m) emergency fund to strengthen fuel security.
South Korea
Seoul has said it will ease limits on coal-fired power generation capacity and raise nuclear power plant utilisation to as high as 80%.
Last week it enforced a mandatory five-day vehicle rotation system for civil servants, but said today it could extend the driving curbs to the wider public if energy prices continue to rise.
As well as trying to protect supplies, South Korea is also considering additional energy vouchers to support
vulnerable households.
