G7 Finance Ministers Explore Response to Fallout from Iran Conflict

AFP

France's Economy, Finances and Industry Minister Roland Lescure and other French officials.

France's finance minister has called on the International Monetary Fund (IMF) and the World Bank to intensify support for countries most vulnerable to the economic consequences of the conflict in the Middle East, as he hosted finance ministers and central bank officials from the G7 and other nations in Paris on Tuesday.

Finance ministers and central bank governors from the Group of Seven (G7) gathered in the French capital for a second day of discussions focused on the economic fallout from the regional conflict and ongoing volatility in global bond markets.

They were joined on Tuesday by representatives from several other countries, including Gulf states, Brazil and Kenya, as the world’s seven leading industrialised economies seek to forge new partnerships amid growing tensions over issues ranging from the conflict involving Iran to efforts to increase pressure on Russia over the war in Ukraine.

"We agree on the fact that the IMF and the World Bank have to step up their game ⁠for those countries (most vulnerable to the impact of the Middle East conflict) and make sure we help them," French Finance Minister Roland Lescure told reporters, adding that a shortage of fertiliser would have a particular impact.

U.S. President Donald Trump said on Monday he had paused a planned attack against Iran after Tehran sent a peace proposal to Washington, and that there was now a "very good chance" of reaching a deal limiting Iran's nuclear programme.

Some G7 countries have expressed frustration that Washington and Israel launched strikes against Iran without fully factoring in the economic consequences, particularly the risk of disruption to global energy markets and the possible closure of the Strait of Hormuz, a key maritime route for oil and gas shipments.

Officials from Qatar and the United Arab Emirates were attending the meeting in Paris to discuss the crisis in the Gulf, Lescure said.

Syria and Ukraine participated in parts of the discussions, underscoring the G7’s focus on stabilising countries viewed as central to both regional and global security. Officials from Brazil, India and South Korea also took part, reflecting efforts to expand international partnerships at a time when traditional alliances are being increasingly tested and reassessed.

Lescure said participants also discussed diversifying the supply of rare earths and critical minerals, and addressing global imbalances - a theme of France's G7 presidency.

He also stressed the need for continued pressure on Russia after the United States announced another 30-day extension of a sanctions waiver allowing purchases of Russian seaborne oil to aid "energy-vulnerable" ⁠countries.

"From the EU point of view, we do not think that this is the time to ease pressure on Russia," Dombrovskis told reporters on Tuesday, adding that U.S. Treasury Secretary Scott Bessent had been "reassuring" that it would only be temporary, but also noting it was the second extension of this measure.

Source: Reuters



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