In a joint statement issued after meetings in Paris, the G7 officials said it was “imperative” to restore normal transit through the strategic waterway, which handles a substantial share of global oil and liquefied natural gas shipments.

The statement was released following discussions among finance chiefs from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as tensions linked to the Middle East conflict continue to disrupt international trade and energy flows.

The ministers also emphasized the need to address widening global current account imbalances and reaffirmed their commitment to multilateral coordination in responding to threats facing the world economy.

The G7 warned against arbitrary export restrictions and stressed the importance of maintaining stable and predictable energy markets at a time of heightened geopolitical uncertainty and supply chain volatility.

The Strait of Hormuz, located between Iran and Oman, remains one of the world’s most strategically significant maritime chokepoints. Any disruption to traffic through the corridor can have immediate consequences for oil prices, shipping costs and inflationary pressures across major economies.

The latest G7 statement reflects growing international concern over the economic fallout from escalating regional tensions and the broader impact on global trade, energy security and financial markets.

Klingbeil is due to travel to Paris for a meeting of G7 finance ministers and central bank governors scheduled for Monday and Tuesday, where the Iran conflict and its economic implications are expected to feature prominently on the agenda.

“The G7 is the right place to discuss how we can help bring about a lasting end to the war in Iran,” Klingbeil said in remarks released before the meeting. He added that Germany and its European partners remained committed to cooperation, open trade and rules-based international partnerships.

The minister said recent geopolitical and economic shocks had reinforced the need for Germany and Europe to strengthen resilience in critical sectors including raw materials, energy supplies and industrial supply chains.

The conflict has heightened concerns over shipping through the Strait of Hormuz, one of the world’s most strategically important oil transit routes. Any prolonged disruption could affect global energy markets and trade flows.

Klingbeil also said finance ministers from Brazil, India, South Korea and Kenya would participate in discussions in Paris as part of a broader effort to deepen international economic partnerships beyond the G7 bloc.

He said Germany would continue supporting Ukraine despite mounting tensions in the Middle East and would not allow the Iran crisis to divert attention from Russia’s war in Ukraine.

Klingbeil is expected to sign a double taxation agreement with Ukrainian Finance Minister Sergii Marchenko during the Paris meetings, a step he said would strengthen economic cooperation and provide greater legal certainty for businesses operating between the two countries.

Even before the latest hostilities, analysts described Iran’s economy as deeply fragile, weighed down by sanctions, energy imbalances, inflation and declining exports. The impact of renewed strikes and the effective closure of Hormuz a critical artery for global energy shipments has sharply intensified those pressures.

The blockade threatens more than 90% of Iran’s annual trade, estimated at over $100 billion, according to analysts, cutting off vital oil exports that account for roughly 80% of government revenue. Estimates cited by experts suggest losses of around $435 million per day, potentially exceeding $13 billion monthly.

Energy infrastructure constraints are compounding the crisis. With limited storage capacity and continued production, Iran risks being forced to halt oil output within weeks, raising the possibility of long-term damage to oil fields and a permanent reduction in production capacity.

On the domestic front, economic indicators point to severe distress. The Iranian rial has sharply depreciated, while food inflation has surged into triple digits, eroding purchasing power and fueling social discontent.

Shortages of energy have also disrupted key industries such as steel, cement and petrochemicals.The blockade’s effects are further magnified by limited alternative trade routes. Infrastructure outside the Gulf, including overland corridors and non-Hormuz ports, can handle only a fraction of normal throughput, leaving Iran with few options to offset lost maritime access.

Internal divisions are also emerging over the management of foreign currency revenues and economic policy, with some officials warning that significant portions of export earnings are not reaching state coffers.

Former Iranian foreign minister Mohammad Javad Zarif has called for compromise, urging Tehran to consider limiting its nuclear program and reopening Hormuz in exchange for sanctions relief to prevent further economic deterioration.Analysts say the government’s response is driven less by economic logic than by strategic considerations.

Sanam Vakil of Chatham House said the conflict is viewed by Iran’s leadership as existential, limiting the likelihood of policy shifts despite economic strain.The longer-term outlook remains uncertain.

Researchers at Royal United Services Institute warn that postwar recovery could be hampered by damaged infrastructure, reduced access to regional financial networks and strained ties with Gulf partners, particularly the United Arab Emirates, a key trade hub for Iran.

With reconstruction costs expected to be substantial and trade channels constrained, the economic consequences of the conflict may prove more enduring than the military phase itself.

A three-judge panel at the US Court of International Trade will consider lawsuits filed by 24 mostly Democratic-led states and two small businesses seeking to block the tariffs, which took effect on February 24.

The plaintiffs contend the policy sidesteps a decision by the US Supreme Court that struck down a broad set of earlier tariffs imposed under the International Emergency Economic Powers Act.

The Trump administration has defended the tariffs as a lawful response to persistent trade imbalances, arguing that the United States’ long-standing deficit importing more goods than it exports justifies emergency measures.

The tariffs were enacted under Section 122 of the Trade Act of 1974, which permits duties of up to 15% for a limited period in cases of significant balance-of-payments deficits or to prevent a sharp depreciation of the U.S. dollar.

Plaintiffs argue that the provision is intended for short-term monetary crises and does not apply to routine trade deficits, which they say do not meet the statutory threshold.The legal dispute marks a further test of executive authority over trade policy, an area traditionally involving congressional oversight.

Trump has made tariffs a central element of his economic and foreign policy agenda in his second term, asserting broad unilateral powers to impose import duties.

The case follows a February 20 ruling by the Supreme Court that invalidated many of Trump’s earlier tariffs under the International Emergency Economic Powers Act, finding that the statute did not grant the authority he had claimed.

The current lawsuits do not challenge other tariffs imposed under more conventional legal frameworks, including duties on steel, aluminum and copper imports.

Iran’s Revolutionary Guards said ships should avoid the main navigation zone and instead follow designated entry and exit paths to reduce the risk of collision with naval mines.

“All ships intending to transit the Strait of Hormuz are hereby notified they should take alternative routes for traffic,” the statement said, emphasizing maritime safety concerns.

The announcement follows Tehran’s agreement to temporarily reopen the strategic strait as part of a two-week truce reached with Washington. The ceasefire was agreed late Tuesday, shortly before a deadline set by U.S. President Donald Trump for Iran to comply with demands related to the reopening of the passage.

The Strait of Hormuz is a critical global energy corridor, through which roughly one-fifth of the world’s oil supply typically passes.

Iran had effectively restricted traffic through the route since early March, contributing to a surge in global energy prices and heightening concerns over supply disruptions.

The designation of alternative routes signals continued operational risks in the waterway despite the ceasefire, underlining the fragile security environment and the potential for further disruption to global shipping and energy markets.

In a post on Truth Social, Trump warned Tehran to restore access to the strategic shipping lane, which Iran has effectively closed since hostilities intensified. “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!” he wrote, linking potential military action directly to the disruption of maritime traffic through the strait.

The president’s remarks, delivered in forceful language, underscored the growing pressure on Iran amid ongoing military exchanges. The Strait of Hormuz is a critical artery for global energy supplies, and its closure has heightened concerns over disruptions to oil shipments and broader economic repercussions.

Trump also said he would hold a news conference on Monday in the Oval Office following a U.S. military operation that rescued two American pilots whose aircraft had been downed in Iran. Details of the rescue mission were not elaborated in the statement.

The threat of strikes on infrastructure marks a potential widening of targets beyond military assets, signaling an escalation in U.S. strategy as tensions persist in the region. Iran has not publicly responded to Trump’s latest warning.

The developments come amid continued fighting involving U.S. and Israeli forces and Iranian targets, with both sides reporting damage to infrastructure and military assets over the past month.

The FAO Food Price Index, which tracks international prices of a basket of widely traded food commodities, averaged 128.5 points in March, up 2.4% from a revised February level, according to the agency.

The increase reflects upward pressure in global food markets, though the FAO did not specify individual commodity drivers in its summary release.

In a separate report, the FAO slightly raised its forecast for global cereal production in 2025 to a record 3.036 billion metric tons, representing a 5.8% increase compared with the previous year.The updated outlook suggests improved supply prospects for staple crops, even as price trends point to continued volatility in international food markets.

The bottleneck includes 12 very large gas carriers and 50 very large crude carriers, with only six ships transiting the strait between Tuesday and Wednesday, far below the typical daily average of around 120 vessels in peacetime, data from maritime analytics firm Kpler showed.

Limited movement has been permitted through a tightly controlled corridor near Iran’s Larak Island, with access largely restricted to vessels linked to Iran or countries maintaining favorable relations with Tehran. Lloyd’s List estimates that at least 48 ships have passed through the route since last week under such arrangements.

Iran imposed the blockade following strikes by the United States and Israel on Feb. 28, effectively constraining a waterway that normally handles about one-fifth of global oil and gas shipments. Shipowners granted passage have reportedly faced fees of up to $2 million per transit, although Tehran has indicated that vessels from allied nations may be exempt.

Malaysian authorities said tankers operated by companies including Petronas, Sapura Energy and MISC were awaiting clearance, with Iran assuring Kuala Lumpur that fees would be waived due to bilateral ties. Officials cautioned that heavy congestion could delay passage regardless of exemptions.

China said at least three of its vessels had recently transited the strait following coordination with relevant parties. Ship-tracking data indicated that two container ships exited the Gulf on a subsequent attempt while sailing in close formation and at increased speed, in what analysts described as the first such movement by non-Iranian container vessels since the escalation began.

A small number of other ships have also managed to leave, including a Greek-operated tanker carrying Saudi crude to India and several Indian-flagged liquefied petroleum gas carriers transporting essential cargo.

Shipping sources said some crews have adopted risk mitigation measures such as nighttime navigation or disabling tracking systems to reduce exposure to threats including mines, missiles and drones.Despite limited transits, exports from major Gulf producers such as Saudi Arabia and Qatar remain largely suspended, with hundreds of vessels and an estimated 20,000 seafarers still awaiting clearance in and around the Gulf.

A Pakistani oil vessel reached Karachi after successfully transiting the strait, while another shipment arrived via an alternative route. Officials said further deliveries could follow in the coming weeks.The disruption has intensified diplomatic efforts to reopen the waterway.

Britain is preparing to host talks involving around 35 countries to address maritime security, while China and Pakistan have jointly called for a ceasefire and urged all sides to ensure safe passage for commercial shipping.U.S.

President Donald Trump reiterated on Wednesday that Iran must lift the blockade, warning of potential military action if it fails to comply.

Speaking to reporters aboard Air Force One, Trump said Washington would not oppose a shipment from Russia or other countries if intended to alleviate shortages. “If a country wants to send some oil into Cuba right now, I have no problem whether it’s Russia or not,” he said.

Shipping data cited in reports shows a tanker carrying roughly 730,000 barrels of oil nearing Cuba’s eastern coast, with an expected arrival in Matanzas. The vessel is expected to deliver fuel that could yield about 180,000 barrels of diesel, enough to meet the country’s demand for more than a week.

The tanker, identified as the Anatoly Kolodkin, is under sanctions imposed by the United States, the European Union and the United Kingdom following the war in Ukraine.

Trump’s remarks come despite his administration’s intensified efforts to restrict oil flows to Cuba in a bid to pressure its government. He has previously threatened punitive tariffs on third countries supplying oil to the island.

The blockade has contributed to widespread fuel shortages, with reports of prolonged blackouts and disruptions to public transport and healthcare services across Cuba.Cuba has long been a focal point of strategic competition between the United States and Russia.

Trump dismissed suggestions that allowing the shipment would benefit Russian President Vladimir Putin, saying the delivery would have limited impact beyond addressing immediate needs.

He said he would prefer allowing fuel deliveries to ease hardship for civilians, citing the need for electricity, heating and cooling as essential services.

A wave of cautious optimism is spreading across global semiconductor and automotive industries as reports surface suggesting that chipmaker Nexperia may soon resume shipments from its Chinese facilities.

Though neither the Dutch government nor Nexperia has officially commented, the potential move signals progress toward stability in the international chip supply chain, which has been under pressure for months due to trade restrictions.

The semiconductor sector, vital for car manufacturers like Ford, General Motors, and Honda, has faced significant supply disruptions in recent years.

The anticipated resumption of Nexperia shipments could bring relief to automakers worldwide, helping them meet growing demand and maintain production targets.

Industry experts view this development as a positive sign that nations are moving toward more collaborative, solution-oriented discussions around technology trade and manufacturing.

The Netherlands released a statement emphasizing ongoing communication with China and other international partners. The country reiterated its commitment to finding a “constructive solution” that ensures both economic balance and technological cooperation.

This approach highlights the importance of dialogue and partnership in managing complex global trade relationships, especially in sectors as essential as semiconductors.

Nexperia, a company owned by China’s Wingtech, has been vocal about its desire to see tensions de-escalate. A company spokesperson reaffirmed that Nexperia remains committed to stability and innovation in the global tech ecosystem.

The company has consistently advocated for fair trade practices that allow technology and innovation to flow freely across borders, benefiting economies and consumers alike.

The semiconductor industry plays a critical role in modern economies, powering everything from smartphones and computers to electric vehicles and renewable energy systems.

The potential reopening of Nexperia’s supply channels marks a hopeful turning point in ensuring a steady supply of chips to industries that depend heavily on them.

This would not only stabilize production but also inspire confidence in global manufacturers navigating post-pandemic supply chain challenges.

As the chip industry recovers, many nations are working together to strengthen supply networks and reduce dependency bottlenecks.

The Netherlands’ balanced diplomacy and its efforts to maintain dialogue with China demonstrate how collaboration can overcome trade friction.

A renewed partnership between European and Asian industries could also set a positive precedent for future global trade relations.

Automakers, who have faced months of uncertainty, see this development as a chance to regain momentum. A stable chip supply means smoother production cycles, timely deliveries, and sustained innovation in vehicle technology.

For consumers, this could translate into greater availability of advanced vehicles, including electric and hybrid models that rely heavily on semiconductor components.

Despite previous challenges, the resilience of the tech and automotive industries has remained strong. Companies have adapted, diversified their suppliers, and invested in domestic chip manufacturing.

Nexperia’s potential return to global operations reinforces this resilience and symbolizes a gradual return to equilibrium across interconnected markets.

In the broader picture, this positive shift supports the idea that diplomacy, cooperation, and innovation can coexist to strengthen global progress.

As governments and corporations prioritize dialogue over division, industries dependent on technology and manufacturing can continue to thrive.

The story of Nexperia underscores the power of collaboration in creating a balanced, sustainable, and forward-looking economic environment.