Europe’s top economies are warning that the Iran war could push the continent toward a major economic crisis, as G7 finance ministers reportedly confronted U.S. officials over rising oil prices, Hormuz disruption and recession fears. France, Germany, Italy and the European Union urged Washington to rapidly de-escalate tensions, warning that prolonged instability in the Middle East could trigger wider food, fuel and fertilizer shocks across global markets. U.S. Treasury Secretary Scott Bessent instead pushed allies to increase sanctions pressure on Iran, while also extending a pause on some sanctions targeting Russian oil exports, angering several European officials. Despite sharp disagreements, G7 nations issued a joint warning that the Iran conflict now threatens global supply chains, economic growth and energy security worldwide.
