G7 Finance Ministers Press U.S. to End Iran War Amid Economic Strain

At the G7 finance ministers’ meeting in Paris, French Finance Minister Roland Lescure, chairing the talks, and German Finance Minister Lars Klingbeil privately urged U.S. Treasury Secretary Scott Bessent to end the United States-Israel-led war with Iran. Both ministers said the conflict must end quickly and that reopening the Strait of Hormuz is essential for Europe’s economy.

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The war has pushed oil prices higher, strained food and fertilizer supplies, and slowed growth across the EU, prompting the European Commission to prepare a downgrade of its 2024 growth forecast. European governments, already burdened by high debt, are budgeting extra support for households facing higher energy bills. Meanwhile, the United States extended a pause on Russian oil sanctions until mid-June, a move the EU says will generate billions of extra revenue for the Kremlin.

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European ministers framed the war as a direct threat to growth and called for an immediate negotiated settlement and open Hormuz Strait. Bessent replied that allies should step up sanctions on Iran and defended the Russian sanctions pause as a temporary measure to stabilize crude markets and ensure oil reaches the most energy-vulnerable countries. The EU Economy Commissioner Valdis Dombrovskis said the United States should not relax sanctions on Russia. The G7 communiqué echoed these concerns, noting that the conflict heightens global inflation risks and that a swift return to free transit through Hormuz is imperative.

New York Times

European officials criticized the U.S. sanctions relief, saying it undermines pressure on Moscow, could worsen energy volatility, and noted that the pause’s impact is disputed while the EU’s growth downgrade remains unspecified.

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• “It’s not only the Europeans who think that. We all think that it must end as soon as possible,” — Roland Lescure, French Finance Minister

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• “I made our position clear once again: We want the war to end quickly, we want a negotiated solution, and we want the Strait of Hormuz to remain open,” — Lars Klingbeil, German Finance Minister

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• “Of course, the United States is hardly alone in facing the scourge of terrorism, especially from Iran. Yet, too often, we seem to be alone in our resolve to thwart it,” — Scott Bessent, U.S. Treasury Secretary

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• “now is not the time to relax sanctions on Russia.” — Valdis Dombrovskis, EU Economy Commissioner

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The G7 leaders pledged to monitor the economic fallout of the Iran war and to pursue a swift reopening of the Strait of Hormuz. Future finance-minister meetings will address coordination on sanctions policy and the search for a negotiated settlement in both the Middle East and Ukraine.

New York Times