France Says Planning G7 Finance Meeting on Mideast
Paris: France plans to hold a meeting of G7 finance ministers with the participation of central bankers on the Middle East crisis, French Economy and Finance Minister Roland Lescure said on Wednesday.
“I met with various counterparts, especially US Treasury Secretary Scott Bessent. We agreed to hold a meeting at the beginning of next week,” he told Franceinfo radio.
“We want to wait a week to see how the conflict develops, how the markets develop. Finance ministers and central bank governors will also be there.”
France currently holds the rotating presidency of the Group of Seven Advanced Economies, which also includes Canada, Germany, Italy, Japan, the United Kingdom and the United States.
The first meeting of finance ministers under the French presidency was held on January 27.
Lescure said next week’s meeting is expected to be an exchange of views.
“We will listen to developments from the business community, from economists in these different parts of the world,” he added.
“The goal is to be able to discuss the status of the situation so that we can consider the responses that may be necessary if we need to take action.
“In a conflict that is currently a local conflict in one region but has global repercussions, it is of course very important that we coordinate.”
Fuel prices
The war in the Middle East, which started with the US-Israel bombing of Iran on Saturday, has led to sharp declines in stock markets, especially in Europe and Asia, in recent days.
France’s benchmark CAC40 index has lost more than five percent since the beginning of the week. Its German equivalent, the Dax, fell by almost six per cent, while London’s FTSE 100 fell almost four per cent.
Investors are concerned about a sharp rise in hydrocarbon prices due to supply disruptions in the Strait of Hormuz, which carries about 20 percent of the world’s seaborne oil and liquefied natural gas.
Iran’s Revolutionary Guards have stressed that they have “full control” of the strategic waterway and that any ship seeking to use it risks damage from missiles or roving drones.
However, US President Donald Trump said the US Navy was ready to escort the tankers along the shipping route.
Like many countries, France is watching the impact of the war on oil prices from the pump.
Deputy energy minister and government spokeswoman Maud Bregeon told BFMTV on Wednesday they were expecting a “limited” short-term increase of “a few centimetres”.
“As for what happens next, that will depend on how intense the conflict becomes,” he added.
However, he stressed that there was “no risk of interruption in fuel supply” due to stocks and diversified imports.
When asked about the possibility of measures to offset price increases, he said it was “too early to talk about it” and that the priority was to work towards reopening the Strait of Hormuz.
Lescure said inspections would be carried out to ensure any increase in fuel prices was “reasonable”.
