Financial leaders from the world’s most advanced economies convened in Paris this week to address economic disruptions caused by escalating Middle East tensions, with France’s top finance official calling for enhanced international assistance.
During their two-day gathering in the French capital, finance ministers and central bank governors from G7 nations discussed how the regional conflict has affected global markets and created economic instability worldwide.
The Tuesday session expanded to include representatives from Gulf nations, Brazil, and Kenya as the group of seven wealthy countries seeks to strengthen international partnerships while managing multiple global crises including ongoing pressure on Russia regarding 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.
However, several G7 nations have voiced concerns that Washington and Israel proceeded with military action against Iran without fully considering economic ramifications, including the potential shutdown of the Strait of Hormuz, a crucial shipping route for global energy supplies.
According to Lescure, officials from Qatar and the United Arab Emirates joined the Paris discussions to address the Gulf region crisis.
Representatives from Syria and Ukraine took part in portions of the talks, reflecting the G7’s focus on supporting nations considered essential to regional and worldwide stability.
Delegates from Brazil, India and South Korea also participated, representing efforts to expand international cooperation during a period when established alliances face challenges.
The gathering also addressed strategies for diversifying sources of rare earth elements and essential minerals, along with tackling global economic imbalances – key priorities during France’s G7 leadership.
Lescure has emphasized that worldwide economic disparities are creating trade tensions and could lead to dangerous market disruptions, pointing to patterns where China under-consumes, the United States over-consumes and Europe under-invests.
“We see how others are changing the rules, and I have no desire for us to end up being the fools,” German Finance Minister Lars Klingbeil told reporters on Monday, calling for Europe to set local content requirements and assert its interests.
Regarding essential minerals and rare earth elements, G7 governments are working together to decrease dependence on China, which controls supply networks crucial for electric vehicle technology, clean energy systems, and defense equipment.
European Economic Commissioner Valdis Dombrovskis said the G7 is making progress in raw materials partnerships, but he added it is not something that would happen overnight. “That requires time and adequate preparation.”
He also emphasized maintaining pressure on Russia following the United States’ announcement of another 30-day extension for a sanctions waiver permitting purchases of Russian seaborne oil to assist “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.
