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G7 Summit · Global Economy · Inflation · Iran War
President Donald Trump's Iran war is casting a significant shadow over the G7 summit in Évian-les-Bains, France, as global leaders grapple with the conflict's severe economic fallout, including U.S. inflation hitting 4.2 percent in May, its highest mark in three years.
The war has rattled oil markets, disrupted energy supplies, and fueled global inflationary pressures, creating domestic political and economic problems for nations heavily dependent on the Strait of Hormuz. European leaders, including French President Emmanuel Macron, are actively seeking a final deal with Iran to reopen the strait and have invited Saudi Crown Prince Mohammed bin Salman, Qatari Emir Tamim bin Hamad Al Thani, and Egypt’s Abdel Fattah El-Sisi to discuss solutions.
The Bank of Japan is expected to raise interest rates to a 31-year high, and the World Bank reported on Thursday that the war is harming global economic growth prospects, projecting 2026 output growth at 2.5 percent, down from 2.9 percent over the last two years.
