WASHINGTON - Finance chiefs from the Group of Seven industrial powers agreed Wednesday to do everything possible to stabilize the global economy amid considerable uncertainty brought on by the U.S.-Israeli war on Iran.
With energy prices soaring and supply chains worldwide disrupted, Japanese Finance Minister Satsuki Katayama also told reporters after their meeting in Washington that many central bankers appeared to favor a wait-and-see stance on monetary policy.
While acknowledging it is hard to tell whether a fragile ceasefire in the more-than-month-long war will lead to a lasting peace, she said, "I believe there was a shared understanding that we need to do our best to defuse the situation, including ensuring freedom of navigation in the Strait of Hormuz."
Katayama said U.S. Treasury Secretary Scott Bessent did not attend the meeting due to a schedule conflict, adding that a non-G7 joint statement organized by Britain is "generally what everyone thinks."
The finance ministers and central bankers of the G7 -- a group comprising Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union -- did not issue a joint communique after concluding the talks.
Together with Britain, the finance ministers from Australia, Japan, Sweden, the Netherlands, Finland, Spain, Norway, Ireland, Poland and New Zealand said Wednesday in the document on the Middle East that "even with a durable resolution of the conflict, impacts on growth, inflation and markets will persist."
Among other points, the ministers committed to "promoting cooperation and integration to support regional and global stability." The war has exposed a deepening rift between the United States and Europe.
The world has welcomed the two-week ceasefire agreement reached last week between the United States and Iran, but there is still no end in sight to the war, with the Strait of Hormuz -- a critical waterway for global trade off Iran's southern coast -- remaining largely closed to maritime traffic.
At the two-hour G7 meeting, held on the sidelines of the spring gatherings of the International Monetary Fund and the World Bank, the participants also discussed support for Ukraine and cooperation on securing critical minerals, which are essential to high-tech industries and national security, according to Katayama.
Before the G7 meeting, chaired by France, which holds the group's presidency this year, Katayama met with Bessent.
Katayama wrote on social media that she had agreed with Bessent to "strengthen close communication" between the two sides on exchange rates, adding that he offered a "very intriguing" briefing on the Iran situation.
Katayama said she had briefed Bessent on Japan's crude oil procurement from the United States and on Tokyo's financial package for other Asian countries amid the energy crunch.
The $10 billion in financial support, announced by Prime Minister Sanae Takaichi on Wednesday, is aimed at improving energy supply chains in Asia, such as through loans to procure crude oil and petroleum products.
Later in the day, when she met with the press, Katayama disclosed that Bessent is "very much looking forward to visiting Japan" before accompanying President Donald Trump on his trip to China in mid-May.
Asked what kind of information she obtained from him on the Iran situation, Katayama said she cannot go into detail but hinted that it was related to the Trump administration's view on when the war might unwind and the issue of sanctions.
