warned last month<\/a> that disruptions to oil markets stemming from the Middle East conflict could slow growth, fuel inflation and raise the possibility of a global recession.<\/p>\nWhile the finance ministers gathered, concern was increasing over a global bond market sell-off that has been fueled by fears that higher energy prices will lead to a fresh bout of inflation.<\/p>\n
\u201cWhen oil prices hover above $100 and there is already impact of this war baked in, inevitably there would be a response,\u201d Kristalina Georgieva, the managing director of the International Monetary Fund, said of the bond market volatility on Monday.<\/p>\n
Ms. Georgieva said that policymakers needed to monitor the inflation situation carefully to ensure that they \u201cdon\u2019t put in place measures that would make the situation worse.\u201d<\/p>\n
At recent G7 gatherings, U.S. tariffs have driven a wedge between Washington and its allies. Mr. Trump\u2019s import duties continue to be a contentious issue this year.<\/p>\n
\u201cThat\u2019s not gone away,\u201d said Josh Lipsky, head of international economics at the Atlantic Council. \u201cSo it\u2019s hard to talk about cooperation with Iran economically when you have this hanging over their heads.\u201d<\/p>\n
European Union officials paused their work toward carrying out a trade deal with the United States in February after the Supreme Court struck down Mr. Trump\u2019s sweeping tariffs.<\/p>\n
Earlier this month, Mr. Trump vented his frustration about the lack of progress and he threatened to increase tariffs on European cars and trucks to 25 percent from the previously agreed 15 percent.<\/p>\n
The United States gave the European Union until July to finalize the agreement, which Ursula von der Leyen, the president of the European Commission, said on May 7 was making \u201cgood progress.\u201d<\/p>\n
Russia could also be a point of contention between the Washington and the rest of the G7.<\/p>\n
European nations were frustrated when the United States granted sanctions exemptions allowing the sale of some Russian oil as a way to contain oil prices that were rising because of the Iran war.<\/p>\n
The general license authorizing the Russian oil sales was enacted in March and extended in April through last Saturday. The Treasury Department briefly allowed the exemption to lapse, but<\/p>\n
late on Monday, Mr. Bessent announced another 30-day reprieve that he said would help the most vulnerable nations gain access to Russian oil that is currently at sea.<\/p>\n
\u201cThis extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,\u201d Mr. Bessent said in a post on social media. \u201cThis general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries.\u201d<\/p>\n
Before that announcement, Mr. Lescure said that the meetings would include discussions about how to increase support for Ukraine, whose finance minister will be in attendance and the future of Western sanctions on Russia.<\/p>\n
\u201cWe need to have a conversation to make sure that we all agree on one, Ukraine needs to be supported, and two, Russia shouldn\u2019t be a winner of that conflict,\u201d Mr. Lescure said.<\/p>\n
The United States has been facing pressure from its allies to be tougher on Russia going forward.<\/p>\n
\u201cNow is not the time to release sanctions pressure against Russia,\u201d said Valdis Dombrovskis, the European commissioner responsible for the trade bloc\u2019s economy. \u201cInstead, we actually need to enforce and strengthen that pressure.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Top finance officials from the world\u2019s wealthiest economies convened in Paris on Monday in hopes of devising a…\n","protected":false},"author":3,"featured_media":805806,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[64,69782,5959,79,323666,8697,145327,327908,3644,249734,310253,209164,145326,277,67,134777,69783,16852,132,68],"class_list":["post-805805","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-customs-tariff","tag-donald-j","tag-economy","tag-embargoes-and-sanctions","tag-european-union","tag-fees-and-rates","tag-foreign-investments","tag-group-of-seven","tag-inflation-economics","tag-metals-and-minerals","tag-oil-petroleum-and-gasoline","tag-prices-fares","tag-trump","tag-united-states","tag-united-states-economy","tag-united-states-international-relations","tag-united-states-politics-and-government","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116597372480753089","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/805805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=805805"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/805805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/805806"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=805805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=805805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=805805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}