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Paris – G7 finance ministers are assessing the economic repercussions of escalating tensions with Iran and exploring potential responses, according to sources. The discussions, held in Paris on Saturday, May 19th, centre on mitigating the impact on global markets and providing support to vulnerable nations.

French Finance Minister Bruno Le Maire has specifically called on the International Monetary Fund (IMF) and the World Bank to bolster their assistance to countries facing the greatest economic strain as a result of the ongoing situation. He emphasised the need for coordinated international action to address the challenges posed by the conflict.

While details of the specific measures being considered remain under wraps, sources suggest the focus is on ensuring financial stability and preventing a broader economic crisis. The G7 nations – comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom – represent some of the world's largest economies and their response carries significant weight.

The urgency of the situation stems from recent events, including heightened geopolitical risks in the Middle East. These events have already caused volatility in oil prices and raised concerns about supply chain disruptions. The G7 ministers are acutely aware of the potential for these disruptions to exacerbate inflationary pressures and slow global economic growth.

The IMF and World Bank, as key international financial institutions, are seen as crucial partners in providing both financial and technical assistance to countries struggling to cope with the economic fallout. Le Maire's call for increased support underscores the G7's recognition of the need for a proactive and coordinated response to the evolving crisis. Further announcements are expected following the conclusion of the G7 finance ministers’ meeting.