G7 Leaders Sidestep Trump Blame for 30% Oil Spike as Iran Truce Eases Summit Tensions
Updated
Updated · Reuters · Jun 17
G7 Leaders Sidestep Trump Blame for 30% Oil Spike as Iran Truce Eases Summit Tensions
3 articles · Updated · Reuters · Jun 17
Summary
France's G7 meeting is set to avoid directly faulting Donald Trump for a war-driven economic hit, even after inflation rose and oil prices jumped 30% following the U.S.-Israel conflict with Iran.
A weekend U.S.-Iran agreement to halt fighting and reopen the Strait of Hormuz reduced the odds of a summit clash, but economists say trade and fuel markets may take months—and bunker fuel up to a year—to normalize.
The economic strain is already visible: the ECB and Bank of Japan raised rates, while European leaders have warned about higher energy bills, food-supply risks and political fallout from rising prices.
The IMF struck a less dire tone after the truce, saying there is no global slowdown yet; its July 8 forecast may lean toward 3.1% growth in 2026, versus a 2% worst-case scenario.
The episode has sharpened doubts about the G7's relevance as it avoids its central economic shock and now represents 44.1% of global GDP, down from 60.5% at its founding.