PARIS: Ministers from the G7 will hold talks on Monday to unpack the economic consequences of the war in the Middle East, the French government said, as oil and gas prices continue to soar.

The United States and Israel launched strikes on Iran in late February and Tehran has hit back by targeting crude-exporting countries in the region and halting shipments through the Gulf.

The squeeze on supply has pushed oil and natural gas prices higher, with drastic knock-on effects for supply chains in countless industries.

French Finance Minister Roland Lescure said the G7 meeting, to be held via videoconference, would include energy and finance ministers as well as central bank chiefs and the heads of other international agencies.

"There are already differences in the responses largely linked to differences in exposure to the crisis," Lescure told a news conference on Friday, stressing that Asia was particularly exposed to the turmoil.

"That is one of the reasons why we wanted to convene a G7 of finance, energy and central banks," he said.

He added that the idea was to exchange views on the impact on financial markets and the economy, later telling local media it was the first time in half a century the G7 had used this format.

‘Absolute necessity’

The G7, an informal grouping of the US, Canada, Britain, France, Germany, Italy and Japan, helps shape policy debates in the world's wealthiest nations.

The United States has sought support from the group to help halt Iran's blockade of the Strait of Hormuz shipping route.

After a meeting last week, G7 foreign ministers said it was an "absolute necessity" for Iran to re-establish free passage through the strait and called for an end to attacks on civilian infrastructure.

Governments scrambling

Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices.

But a lack of clarity over US war aims, along with uncertainty over the potential length of the conflict and the spread of hostilities, has left governments scrambling for coherent responses.

US officials, including President Donald Trump, have said their goals in the war are almost achieved, but thousands of US personnel have been sent to the region in an unprecedented military build-up.

Activists based outside Iran say the US-Israeli campaign has killed more than 3,000 people in the country, over half of them civilians, while Lebanese officials have said more than 1,000 have been killed there since Israel began attacking its territory in retaliation for Hezbollah attacks on March 2.

Officials in Israel and countries across the Gulf have also reported much smaller numbers of casualties.

Articles tagged with "Oil and Gas Prices"

G7 ministers set to tackle financial fallout of Mideast war