Finance leaders from the Group of Seven (G7) have indicated they are prepared to step in if needed, to shield the global economy from the fallout of the war involving Iran, as concerns grow over rising energy prices and supply disruptions.
They "reaffirmed the pressing need to move toward a lasting peace," according to a statement from France, which holds the G7 presidency this year.
The war was the biggest of three key topics discussed by the finance ministers and central bank governors of the world's richest democracies on the sidelines of the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington.
"The conclusion was unanimous: it is urgent to limit the cost to the global economy of an enduring conflict. G7 members reaffirmed the pressing need to move toward a lasting peace," the statement said.
French Finance Minister Roland Lescure said there was a “wide range of outcomes” for the global economy, depending largely on how quickly the conflict comes to an end.
“We need to make sure that we understand where the balance of risks is tilting in the next few weeks,” Lescure said, reflecting a cautious but alert stance among the world’s leading economies.
The group said it has already taken action once. Backed by G7 governments, the International Energy Agency (IEA) said it released a record volume of oil from strategic reserves last month to ease pressure after supply routes through the Strait of Hormuz were disrupted.
Lescure made clear that similar moves remain on the table. “We are meeting again in a month’s time in Paris and we want to make sure that we monitor the situation, we evaluate the impact and that if we need to act, as we did with releasing inventories a few weeks back, we will,” he said.
He also said it was important to ensure free transit for ships through the Strait of Hormuz, adding that G7 ministers agreed that vessels should not have to "pay one dollar" to Iran to pass through the international waterway.
Central banks are also on alert. François Villeroy de Galhau said policymakers are determined to prevent higher energy and commodity prices from feeding into broader, longer-lasting inflation.
“We will act, without hesitation, if and when necessary, but we are not in a rush mode. We need to have more data,” he said.
Meanwhile, Leaders reiterated their commitment to supporting Ukraine, with Lescure warning that the country must not be overlooked amid the focus on Iran.
“Ukraine should never be a collateral damage of the current war in Iran,” he said. “Russia mustn’t be getting benefits from what’s happening in Iran.”
The group also vowed to continue to aid Ukraine, including helping it prepare for next winter after a difficult winter this year with constant Russian attacks on Ukrainian energy infrastructure.
The French statement said the discussion focused on Ukraine's economic reforms under its $8 billion IMF programme, the need to keep up economic pressure on Russia, meeting Ukraine's energy needs, and actively contributing to the repair of the Chernobyl nuclear power plant's confinement arch.
Meanwhile, efforts are also under way to reduce reliance on China for rare earths and other critical minerals.
G7 members are working on plans to build alternative supply chains, with proposals expected to be presented at a leaders’ summit in June in the French Alpine town of Evian-les-Bains.
France holds this year's presidency of the G7, which also includes the U.S., Canada, Japan, Britain, Germany and Italy.
Iran’s army said it targeted U.S. military facilities in Bahrain and Kuwait with drone attacks. Tehran said the operations were carried out in retal...
Georgia has secured two major financial commitments this week, with one aimed at easing road congestion around the capital and the other at strengthen...
A Turkish-owned cargo ship was struck by a drone in the Black Sea after leaving a Ukrainian port, in the latest incident to raise concerns over the sa...
Ukraine targeted a warehouse belonging to Russia’s largest retailer, Wildberries, and an oil refinery overnight, while Moscow said its forces struck a ship carrying military cargo in the Black Sea.
The U.S. military said it completed its latest wave of strikes on Iran, a two-hour operation that hit dozens of targets. Washington described the strikes as a "powerful response" to Iranian missile attacks targeting U.S. forces in the Middle East a day earlier.
Iran’s army said it targeted U.S. military facilities in Bahrain and Kuwait with drone attacks. Tehran said the operations were carried out in retaliation for recent U.S. strikes.
Thousands of migrants have crossed into the Spanish exclave of Ceuta from Morocco, overwhelming border security and prompting local authorities to call for a national emergency and military deployment.
AnewZ travelled across northeastern Syria, where the scars of more than a decade of war remain visible but many believe the country has entered a new chapter.
Thousands of people spent the night on beaches, waiting by fences or wading through the sea in the hope of reaching Europe, as an estimated 49,000 migrants crossed into Spain's enclave of Ceuta in just 24 hours.
Carlos Cordeiro, senior adviser to FIFA president Gianni Infantino, has resigned with immediate effect in protest over proposals to sell a stake in the FIFA World Cup, calling the plan "a bad deal for football."
Ukraine targeted a warehouse belonging to Russia’s largest retailer, Wildberries, and an oil refinery overnight, while Moscow said its forces struck a ship carrying military cargo in the Black Sea.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 31st of July, covering the latest developments.
At least 18 coal miners have been killed and 14 others remain trapped after a powerful methane gas explosion caused part of a mining complex to collapse in Pakistan's southwestern Balochistan province, officials said on Thursday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment