French finance chief calls for stronger IMF, World Bank response to Iran war fallout

French Finance Minister Roland Lescure urged multilateral lenders to step up as G7 officials met in Paris, warning the Iran war is intensifying inflation, energy shocks and food insecurity in vulnerable economies, British media reports.

“We agree on the fact that the IMF and the World Bank have to step up their game ⁠for those countries (most vulnerable to the impact of the Middle East conflict) and make sure we help them,” Lescure told reporters, adding that fertiliser shortages could have significant spillover effects on global food markets.

The meeting brought together finance ministers and central bank governors from advanced economies alongside representatives from Gulf states and emerging economies, as policymakers focused on how instability in the Middle East could ripple through energy markets and global supply chains.

Officials also discussed risks tied to the Strait of Hormuz, a key shipping route for global oil flows, warning that any disruption could amplify inflationary pressures already weighing on major economies.

Beyond the immediate crisis, G7 officials examined longer-term challenges including trade fragmentation, rare earth supply dependence on China, and widening global economic imbalances.

German Finance Minister Lars Klingbeil warned that Europe must adapt more aggressively to shifting global trade dynamics, saying: “We see how others are changing the rules, and I have no desire for us to end up ⁠being the fools,” and calling for stronger industrial policy tools such as local content requirements.

The discussions also included coordination on sanctions policy and energy market stability, with European officials reiterating the need to maintain pressure on Russia despite temporary adjustments to US measures on Russian oil purchases.

The talks underscore growing concern among G7 members that overlapping geopolitical shocks—from the Middle East conflict to tensions with Russia—are increasingly shaping the global economic outlook.

By Aghakazim Guliyev