G7 Finance Ministers Meet in Paris to Tackle Economic Fallout from Middle East Conflict

The finance ministers from the G7 countries convened in Paris on May 18 and 19, 2026, to address the escalating economic impact of the Middle East conflict ahead of the upcoming June summit in Evian. The meeting focused on the dramatic surge in energy prices following the initial bombings in Iran and the blockade of the Strait of Hormuz by Tehran, which have led to rising costs for manufacturing and food, thereby intensifying inflation concerns.

International organizations, notably the International Labour Organization (ILO), have issued grave warnings. The ILO estimated that by 2027, the global economy could suffer losses of 1.1 to 3 trillion dollars, with up to 38 million full-time jobs at risk worldwide. These losses threaten to destabilize vulnerable regions, particularly those heavily dependent on remittances from Gulf countries.

South and Southeast Asian communities stand out as the most vulnerable, given their reliance on income from relatives working in the Gulf, which is now jeopardized due to the economic disruptions caused by the conflict. The G7 ministers' discussions aimed to formulate strategies to safeguard the global economy from further shocks and mitigate the ramifications of the Middle Eastern crisis.

By addressing energy market instability and economic disruption stemming from geopolitical tensions in the Middle East, the G7 seeks to preempt wider global economic destabilization. This Paris meeting serves as a preparatory step towards coordinated international action to preserve economic stability amid ongoing regional conflict.