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In brief:
- Ministers from G7 countries are set to meet on Monday to discuss the economic fallout of the war in the Middle East.
- World governments want greater clarity from the US on its war aims, and how it quickly it plans to end the conflict.
Ministers from the Group of Seven (G7) nations are set to convene on Monday to discuss the economic fallout from the ongoing conflict in the Middle East, according to the French government. This meeting comes amid a sharp increase in oil and gas prices.
In late February, the United States and Israel carried out military strikes on Iran, prompting Tehran to retaliate by targeting key oil-exporting nations in the region and disrupting shipments through the Gulf.
These actions have significantly tightened supply chains, leading to a surge in oil and natural gas prices and affecting numerous industries worldwide.
French Finance Minister Roland Lescure announced that the G7 discussions will take place via videoconference. The meeting will feature participation from energy and finance ministers, central bank leaders, and heads of other international organizations.
“There are already differences in the responses largely linked to differences in exposure to the crisis,” Lescure told a news conference on Friday, stressing that Asia was particularly exposed to the turmoil.
“That is one of the reasons why we wanted to convene a G7 of finance, energy and central banks,” he said.
He added that the idea was to exchange views on the impact on financial markets and the economy, later telling local media it was the first time in half a century the G7 had used this format.
The G7, an informal grouping of the US, Canada, Britain, France, Germany, Italy and Japan, helps shape policy debates in the world’s wealthiest nations.
The United States has sought support from the group to help halt Iran’s blockade of the Strait of Hormuz shipping route.
After a meeting last week, G7 foreign ministers said it was an “absolute necessity” for Iran to re-establish free passage through the strait and called for an end to attacks on civilian infrastructure.
Governments under pressure
Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices.
But a lack of clarity over US war aims, along with uncertainty over the potential length of the conflict and the spread of hostilities, has left governments scrambling for coherent responses.
On Monday, the federal government announced the long-standing fuel excise would be halved for three months as concerns around fuel supply grow. Prime Minister Anthony Albanese himself brought up the same lack of certainty as to how long the conflict could continue.
“I want to see more certainty in what the objectives of the war are, and I want to see a de-escalation,” Albanese told journalists during a press conference about changes to the fuel excise.
US officials, including President Donald Trump, have said their goals in the war are almost achieved, but thousands of US personnel have been sent to the region in an unprecedented military build-up.
Activists based outside Iran say the US-Israeli campaign has killed more than 3,000 people in the country, over half of them civilians, while Lebanese officials have said more than 1,000 have been killed there since Israel began attacking its territory in retaliation for Hezbollah attacks on 2 March.
Officials in Israel and countries across the Gulf have also reported much smaller numbers of casualties.
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