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.
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The Ebola outbreak in eastern Democratic Republic of the Congo is "outpacing containment efforts" amid conflict, weak disease surveillance and limited access to healthcare, according to London-based pharmacist and health commentator Thorrun Govind.
Kazakhstan has reiterated that no existing route can replace the Caspian Pipeline Consortium (CPC), which carries more than 80% of the country's crude oil exports through Russia to the Black Sea.
The U.S. and Iran have reportedly reached a preliminary 60-day ceasefire and nuclear talks deal, pending Donald Trump’s approval, Axios reports. Meanwhile, the GCC condemned Iran’s missile strike on a U.S. airbase in Kuwait, which Tehran said was retaliation for a U.S. strike near Bandar Abbas.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Bolivia’s President Rodrigo Paz has taken steps towards potentially declaring a state of emergency as anti-government protests intensify in the early months of his administration.
Russian President Vladimir Putin arrived in Kazakhstan on Wednesday for a three-day state visit focused on energy, transport and economic cooperation with one of Moscow’s closest regional partners.
Muslims around the world have marked Eid al-Adha with prayers, celebrations and acts of charity, though for many Palestinians the holiday unfolded amid conflict, restrictions and loss.
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The British government has unveiled 300,000 new work experience and training placements for young people after a major review warned that rising youth unemployment could leave more young people disconnected from work, education and training.
Billions of dollars' worth of gold continue to be extracted illegally from Brazil’s Amazon rainforest, according to a Greenpeace study, despite President Luiz Inácio Lula da Silva’s pledges to curb wildcat mining.
Soaring temperatures across Europe have broken records in Portugal and sparked heat alerts in Italy and France, affecting events including the French Open tennis tournament.
NATO member Romania reported on Friday that a Russian drone injured two people in the southeastern city of Galati during an overnight attack on neighbouring Ukraine. The incident marks the first time in the war that a drone has struck a densely populated area in Romania and caused injuries.
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