An aerial photograph shows the Greek-flagged oil tanker “Asahi Princess” off the Syrian port refinery of Baniyas along the Mediterranean Sea on April 15, 2026.
Bakr Alkasem | Afp | Getty Images
Ahead of a meeting of finance ministers of the Developed economies of the Group of Seven In Paris on Monday, a senior European official said the situation in the Middle East has highlighted how the interconnected global economy is exposed to external shocks.
“Opening the Strait of Hormuz and bringing a lasting end to the conflict are of the utmost importance to mitigate the impact on the economy,” Eurogroup President Kyriakos Pierrakakis said in a statement. statement.
The Eurogroup is a body that brings together eurozone ministers and is represented at the G7 meeting by Pierrakakis, who is also Greece’s finance minister. The main members of the G7 are the United States, the United Kingdom, Canada, France, Germany, Italy and Japan.
“The European economy has shown resilience in the face of this energy crisis. Yet the global economy will feel the pressure – even if the conflict is resolved quickly,” Pierrakakis said.
Long-term borrowing costs in several G7 economies have risen in recent weeks, as investors worry about rising inflation caused by tightening energy supplies, while the war in Iran chokes off oil and gas supplies through the crucial Strait of Hormuz.
U.S. Treasury yields climbed Friday after a week of messy inflation data and as traders sought to gauge interest rate policy under the new Federal Reserve chairman. Kevin Warsh.
The yield on the 30 year deposit jumped nearly 11 basis points to 5.121%, the highest since May 22, 2025 and close to the highest since October 2023.
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US Treasury yield at 30 years
In the UK, the yield on 30-year government bonds, known as gilts, is trading at its highest level since the late 1990s due to a combination of factors political instability and concerns about rising inflation.
Japan, particularly sensitive to inflationary pressures linked to the war in Iran, given its status as a major energy importer, has also seen bond yields rise drastically in recent days.
Bond yields and prices move in opposite directions, with traders often getting higher returns on debt investments when confidence in the bond-issuing government is shaken.
Meanwhile, oil prices remain high.
International reference Brent crude July futures gained more than 3% to close at $109.26 a barrel on Friday. WE West Texas Intermediate Futures for June, it increased by more than 4% to settle at 105.42 dollars per barrel.
Brent crude prices are up 74% since the start of the year, but below the peak of $118 a barrel reached in late April.
Global oil stocks are falling at a record pace to offset the sharp supply disruption in the Middle East and will approach critical levels if the Strait of Hormuz does not reopen.
As a result, rising oil and fuel prices are likely ahead of this summer’s peak demand, the International Energy Agency warned last week in its monthly update.
“Rapidly diminishing safety margins amid persistent disruptions could herald future price increases,” the IEA said.
