G7 foreign ministers have warned that the U.S.-Israel war on Iran is causing a global economic catastrophe, but acknowledge their limited ability to influence Washington's policy.
Economic Fallout
- Energy prices have surged since the conflict began in late February.
- Damage to Gulf infrastructure: 30-40% of refining capacity and 17% of gas production destroyed, with repairs taking up to three years.
- Closure of the Strait of Hormuz, through which a fifth of global oil and gas flows, has severely restricted supplies.
Diplomatic Stalemate
- The U.S. claims indirect talks with Iranian officials via intermediaries and has proposed a peace plan.
- Iran rejects direct negotiations, stating message exchanges do not constitute talks, and demands control over the Strait of Hormuz among five points.
- The G7 meeting includes guest delegations from Saudi Arabia, Brazil, India, South Korea, and Ukraine.
U.S. Military Buildup
- The U.S. is deploying additional troops to the region for potential escalation, including seizing Kharg Island or reopening the strait.
- Iran's parliament speaker warned of possible enemy occupation of an Iranian island with regional support.
G7's Constrained Influence
- European G7 members express frustration at not being consulted before the war.
- President Trump has criticized allies for not joining military operations, questioning NATO's value.
- This limits G7 sway over U.S. Iran policy amid ongoing conflict.