G7 finance ministers and central bank governors are meeting in Paris as the Iran War, disruptions in the mostly closed Strait of Hormuz, and Iran’s planned transit fees drive oil, inflation, and sovereign debt concerns.
Finance ministers and central bank governors from the Group of Seven are meeting in Paris for two days as the Iran War and continued disruption in the Strait of Hormuz intensify risks for energy, inflation, bond markets, and sovereign borrowing costs. Oil prices rose sharply, with Brent crude reaching $111.42 a barrel and U.S. West Texas Intermediate at $107.98, after U.S. President Donald Trump warned Iran that time was running out and negotiations with Washington remained stalled over a peace deal and reopening the strait. According to the reports, a fragile April ceasefire has not restored normal transit, Iran has kept the waterway mostly closed, and it plans transit fees for passage. The International Energy Agency said global oil inventories are falling at the fastest pace on record as markets absorb lost Middle East supply and warned stockpiles could approach critical levels if the strait remains blocked. The Paris agenda also includes trade imbalances, public debt sustainability, sanctions enforcement, energy security, inflation, bond market volatility, and critical mineral supply chains, as officials assess how higher energy prices, supply disruptions, and military spending could lift yields, raise financing costs, and deepen economic strain.