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G7 Finance Chiefs Warn of Rising Growth and Inflation Risks as Iran Crisis Strains Energy Routes

They urge safe passage through the Strait of Hormuz to relieve pressure on vital supply routes.

Overview

  • The G7 finance ministers and central bank chiefs, who met in Paris and issued a statement Tuesday, said the Iran war has raised risks to global growth and inflation.
  • They called the rapid restoration of free and safe transit through the Strait of Hormuz imperative, noting the chokepoint carries much of the world’s oil plus key inputs like fertilizers.
  • The group pledged to watch market conditions with international bodies and backed stable, transparent energy and commodity trade, urging countries to avoid arbitrary export bans.
  • Ministers advanced plans to diversify supplies of rare earths and other critical minerals to cut reliance on China, with France pointing to the Franco‑Japanese Caremag plant as a model.
  • France said it will roll out a June fuel‑aid package after early‑May fuel tax receipts fell by about €300 million on a roughly 30% drop in consumption, signaling strain on households and haulers.