JAKARTA - G7 financial leaders have agreed to hold back the global economic shock amid the war between the United States and Israel against Iran. Kyodo News quoted Thursday, April 16, reporting that Japanese Finance Minister Satsuki Katayama said the group wanted to show a united stance as energy prices soared and the world's supply chains were disrupted.
The meeting in Washington on Wednesday showed that developed economies want to prevent a protracted Middle East war because the risks are clear, prices could rise again and economic growth could slow down. But the same conflict also shows a growing difference in views between the United States and Europe.
The G7 consists of the United Kingdom, Canada, France, Germany, Italy, Japan, the United States, and the European Union. At the forum, the finance ministers and central bank governors of member countries discussed steps to maintain economic stability amid new pressures on global markets.
The situation on the ground itself has not really calmed down. Even though the United States and Iran last week agreed to a two-week ceasefire, the war has not shown any signs of ending soon. The Strait of Hormuz, an important global trade route off the coast of southern Iran, is still largely closed to ship traffic.
Still according to the Kyodo News report, before the G7 meeting this year led by France, Katayama first met with US Treasury Secretary Scott Bessent. Katayama said the two agreed to strengthen close communication regarding the exchange rate. He also said Bessent gave an interesting explanation regarding the Iranian situation and other issues.
Through the X account, Katayama said he explained to Bessent about Japan's procurement of crude oil from the United States, as well as Tokyo's package of financial support for Asian countries amid the pressure of the energy crisis.
The package worth 10 billion US dollars announced by Japanese Prime Minister Sanae Takaichi is aimed at strengthening the energy supply chain in Asia, including through loans for the procurement of crude oil and petroleum products.
Katayama also revealed that Bessent planned to visit Japan before continuing his trip to China in the wake of President Donald Trump's visit in mid-May.
The G7 meeting was held on the sidelines of the International Monetary Fund and World Bank spring meetings. Japan was represented by Katayama and Bank of Japan Governor Kazuo Ueda.
However, this time the G7 financial leaders did not issue a joint statement after the talks ended. According to Katayama, Bessent also did not attend the meeting. He added, support for Ukraine and cooperation to secure critical minerals for high technology industries and national security were also on the agenda.
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