The Wall Street Journal reported Tuesday, citing officials familiar with the matter, that the IEA had proposed its largest ever release of oil reserves to counter soaring crude prices driven by the US-Israeli war with Iran.

After a virtual meeting on Tuesday with the IEA's executive director, they said in a statement: "G7 members will carefully consider the recommendations issued during these discussions."

"In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves," they said, adding they were coordinating within the G7, with IEA member countries and beyond.

"We agreed to stand ready to take all necessary measures in coordination with IEA Members," the statement said.

G7 finance ministers met on Monday and G7 energy ministers on Tuesday to discuss the potential release of emergency stocks.

"We want to be ready to react at any moment," French Finance Minister Roland Lescure, whose country holds the rotating presidency of the Group of Seven advanced economies, said Tuesday.

Asian equities extended gains Wednesday while oil stabilised after the WSJ report.

The crude market has been hit by wild volatility since the United States and Israel began striking Iran at the end of last month, with Tehran retaliating by attacking targets across the oil-rich Gulf and effectively shutting down the crucial Strait of Hormuz.

IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government mandates.

The Paris-based IEA was created to coordinate responses to major supply disruptions after the 1973 oil crisis.

In order to ensure energy security, the IEA imposes on its members an obligation to hold emergency oil stocks equivalent to at least 90 days of net oil imports.