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The G7 Finance Ministers, meeting in Paris this Tuesday (19), advocated for the reopening of the Strait of Hormuz and warned about the risks of the Middle East conflict on the global economy. According to
DW Español, the final communiqué, however, did not present deadlines or concrete mechanisms. The United States extended the suspension of sanctions on Russian oil to contain prices, a measure that displeased the European Union and exposed divergences within the G7 itself.
The G7 concluded its meeting of Finance Ministers in Paris with a communiqué that calls for a “quick return to free and safe navigation” through the Strait of Hormuz and reaffirms the commitment to energy market stability. The problem is that, between the request and reality, there is no concrete plan. The strait, through which 20% of global oil and liquefied natural gas exports transit, has been practically paralyzed since the United States and Israel launched attacks against Iran at the end of February. Tehran blocked the passage in retaliation, and since then Brent oil has exceeded 110 dollars per barrel, pressuring the global economy in a way that the G7 recognizes but cannot resolve.
The G7 meeting also exposed a divergence that had been accumulating behind the scenes. On the eve of the summit, the United States Treasury Department announced a 30-day extension of the suspension of sanctions on Russian oil at sea, an attempt to contain rising prices. The European Union publicly disagreed: the European Commissioner for the Economy warned that the bloc “does not believe it is time to ease pressure on Russia.” The G7, which should project unity, left Paris with a visible rift.
What the G7 communiqué really says
The final text of the Paris meeting reaffirms the commitment of the seven countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—to multilateral cooperation and “stable and transparent” energy markets. The G7 communiqué calls for all countries to avoid arbitrary export restrictions and highlights the importance of diversifying supply chains for energy, food, and fertilizers.
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However, the document does not present any operational mechanism to reopen the Strait of Hormuz. There is no mention of a timeline, specific diplomatic pressure on Iran, or naval operations to ensure passage. The French Minister of Economy, Roland Lescure, merely stated that the G7 will monitor the repercussions with international organizations. In practice, the communiqué functions more as a declaration of intentions than as a plan of action and the markets reacted with skepticism.
The divergence over sanctions on Russian oil
The most significant fracture within the G7 does not concern Iran, but Russia. The United States unilaterally decided to extend the exemption of sanctions on Russian oil cargoes held in tankers, a measure first granted in March to address the supply shortage caused by the closure of Hormuz. The decision mainly benefits India, one of the largest buyers of Russian oil, and was made after several countries requested more time to acquire the product.
Europe was not pleased. For the European Union, easing sanctions on Russian oil at a time when Moscow maintains the war in Ukraine sends the wrong message. The American Treasury Secretary, Scott Bessent, who participated in the G7 meeting in Paris, argued that the priority is to prevent energy prices from spiraling out of control and that flexibility is needed for that. The divergence exposes the central contradiction of the G7: the group wants to pressure Russia while at the same time needing Russian oil to contain inflation.
The economic impact of the closure of Hormuz
The International Monetary Fund revised down the global growth projection from 2.9% to 2.5% in 2026, directly citing the impact of the conflict in the Middle East. IMF Managing Director Kristalina Georgieva warned against measures that could exacerbate inflation. The UN also published a report indicating that the closure of Hormuz interrupted the disinflation trajectory that had been observed since 2023 and that the increase in energy prices will be felt more intensely in developing economies.
The G7 acknowledged in the communiqué that “economic uncertainty has increased the risks to growth and inflation,” especially due to pressures on energy and food supply chains. The effects on the global economy are already measurable: The wave of sovereign bond sales in recent days has raised public debt interest rates in several countries, complicating the fiscal scenario. For Latin America, the impact is mixed: oil-exporting countries may benefit from high prices, while importers face additional inflationary pressure.
What is needed for the G7 to translate words into action
The G7 leaders’ summit is scheduled for June 15-17 in the French Alps and will be the next opportunity for the seven countries to turn the Paris communiqué into operational decisions. Until then, the G7 needs to resolve at least three impasses: how to coordinate the reopening of Hormuz without entering into direct confrontation with Iran, how to maintain sanctions on Russia without worsening the energy crisis, and how to prevent inflation from destabilizing the global economy and the most vulnerable nations.
Minister Lescure acknowledged that the group needs to advance in diversifying the supply of rare earths and critical minerals to reduce dependence on China, an issue also mentioned in the communiqué. But while the G7 discusses long-term diversification, the short-term problem remains unsolved: the Strait of Hormuz remains closed, oil remains expensive, the global economy remains under pressure, and the rift between the United States and Europe over Russia remains open.
Do you think the G7 will be able to push for the reopening of the Strait of Hormuz or will Iran maintain the blockade as a pressure tool? What worries you more: oil above 110 dollars, Russian sanctions, or the lack of a concrete plan? Tell us in the comments.
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