France Calls G7 Finance Chiefs to Address Middle East Crisis Fallout
France announced on Wednesday it will host an urgent meeting of G7 finance ministers and central bank governors early next week, aiming to forge a unified economic response to the escalating Middle East crisis and its global financial repercussions.
"We have agreed to hold this meeting at the beginning of next week," French Economy and Finance Minister Roland Lescure told Franceinfo radio, confirming discussions with U.S. Treasury Secretary Scott Bessent. "We want to let a week go by to see how the conflict develops, how the markets evolve. The idea is to discuss the state of the situation and assess any coordinated responses that might be needed."
France currently holds the rotating presidency of the Group of Seven advanced economies. The meeting underscores the bloc's concern that regional hostilities could spiral into a wider economic shock.
The conflict, ignited by a U.S.-Israeli strike on Iran last Saturday, has sent tremors through global markets. European indices have borne the brunt, with France's CAC 40 and Germany's DAX shedding over 5% and 6% respectively since Monday. The primary trigger for investor anxiety is the security of the Strait of Hormuz, a chokepoint for roughly 20% of the world's seaborne oil and liquefied natural gas.
Iran's Revolutionary Guards have asserted "complete control" over the strait, warning of missile or drone threats to shipping. In a sharp rebuttal, U.S. President Donald Trump stated the U.S. Navy stands ready to escort tankers, setting the stage for a potential flashpoint.
This volatility has thrust energy prices and inflation risks back into the spotlight. French Junior Energy Minister Maud Bregeon acknowledged expectations of a "limited" short-term rise in pump prices, but stressed the nation's fuel supplies were secure due to strategic stockpiles. Minister Lescure added that inspections would be conducted to ensure any price increases remained "reasonable."
Analysts note the G7's move is preemptive, seeking to prevent market panic and signal coordinated vigilance. "This isn't about immediate intervention, but about establishing a crisis dashboard and a common playbook," said a senior EU diplomat familiar with the planning.
Voices from the Street:
"Finally, some proactive coordination. Letting markets spiral helps no one. This meeting is a necessary step to calm nerves and plan contingencies," said David Chen, a portfolio manager in London.
"It's just talk. These meetings produce lofty statements while ordinary people pay more for fuel. What concrete action will they take to shield households and ensure energy stability?" argued Sophie Lefevre, an economist and frequent critic of G7 efficacy.
"The market reaction shows how intertwined global stability is. A localized conflict shouldn't crash European indices, but here we are. Central bankers' presence is key—liquidity signals matter," noted Klaus Berger, a Frankfurt-based financial analyst.