The leaders of the G7 are urging a resolution between Israel and Iran amid escalating rounds of strikes, saying they will “remain vigilant” and respond if the conflict impacts international energy markets.
“We will remain vigilant to the implications for international energy markets and stand ready to coordinate, including with like-minded partners, to safeguard market stability,” a joint statement from the G7 leaders reads.
In the statement, the leaders said they affirm that Israel has a right to defend itself and reiterated their support for the country, while stressing the importance of protecting civilians.
They added they’re hopeful a resolution could lead to a “broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza.”
“Iran is the principal source of regional instability and terror,” the joint statement reads. “We have been consistently clear that Iran can never have a nuclear weapon.”
The joint statement from G7 leaders came Monday evening following meetings in Kananaskis, Alta.
Oil prices were driven higher on Tuesday as the conflict continued, though major oil and gas infrastructure and flows had been spared from substantial impact.
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Though there has been no noticeable interruption of oil flows, Iran partially suspended gas production at the South Pars field that it shares with Qatar following an Israeli strike started a fire on Saturday.
Saxo Bank analyst Ole Hansen told Reuters the market was largely worried about disruption through the Strait of Hormuz, though the risk was low.
There is no appetite for closing the waterway, given that Iran would lose revenue and the U.S. wants lower oil prices and lower inflation, Hansen added.
Despite the potential for disruption, there are signs oil supplies remain ample amid expectations of lower demand.
In its monthly oil report on Tuesday, the International Energy Agency revised its world oil demand estimate downwards by 20,000 barrels per day (bpd) from last month’s forecast and increased the supply estimate by 200,000 bpd to 1.8 million bpd.
U.S. President Donald Trump spoke about the conflict before a meeting with Prime Minister Mark Carney, reiterating his comments that Iran should have made a nuclear deal with the U.S. early and said Tehran should “talk immediately before it’s too late.”
He then left the G7 late Monday, with the White House telling reporters he was leaving due to the escalating conflict in the Middle East but not elaborating further.
However, French President Emmanuel Macron told reporters Monday evening that discussions were underway on a ceasefire between Israel and Iran, though Trump denied that he was working on such a move.
He said Macron “mistakenly said that I left the G7 Summit, in Canada, to go back to D.C. to work on a ‘cease fire’ between Israel and Iran. Wrong.”
Trump went on to say he was heading to Washington for something “much bigger” that has nothing to do with a ceasefire.
The president also, early Tuesday morning, said on Truth Social that he had not reached out to Iran for “‘Peace Talks’ in any way, shape, or form.”
— with files from Reuters and The Associated Press
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