G7 finance, energy, and central bank leaders will convene via videoconference on Monday to assess the accelerating economic fallout from the conflict in the Middle East, as disruptions to oil and gas supplies drive global prices upward and strain supply chains.
The meeting, announced by the French government, follows military exchanges that began with U.S. and Israeli strikes on Iran in late February. Iran’s subsequent targeting of shipping and halting of crude exports through the Gulf region has tightened global energy markets. This supply squeeze has pushed oil and natural gas prices to multi-year highs, creating significant knock-on effects for industries worldwide.
French Finance Minister Roland Lescure, who will chair the talks, noted existing divisions among major economies in their responses to the crisis, largely due to varying levels of dependency on Middle Eastern energy. He highlighted that Asian economies are particularly vulnerable to the turmoil, which prompted the expanded G7 format involving energy and financial portfolios alongside central banks.
“It is the first time in half a century that the G7 has used this format,” Lescure said, stressing the aim is to coordinate views on financial market stability and broader economic impacts. The informal G7 grouping—comprising the United States, Canada, Britain, France, Germany, Italy, and Japan—seeks to shape policy responses among the world’s wealthiest democracies.
A key focus will be U.S. efforts to secure G7 backing for keeping the Strait of Hormuz, a critical oil shipping route, open. Last week, G7 foreign ministers called it an “absolute necessity” for Iran to restore free passage and end attacks on civilian infrastructure.
Meanwhile, governments globally have rushed out measures to cushion households and businesses from soaring energy costs and supply bottlenecks. However, uncertainty surrounding the duration and scope of the conflict, coupled with a lack of clarity on U.S. war objectives, has complicated coordinated action.
The conflict’s human toll continues to rise. Activists report over 3,000 deaths in Iran, more than half civilians, while Lebanese officials cite over 1,000 killed in that country since March. Casualty counts from Israel and Gulf nations are lower.
The emergency G7 talks underscore the severity of the economic threat posed by the prolonged energy supply disruption. Outcomes from the meeting are expected to influence energy security strategies and monetary policy responses in the months ahead.
