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Finance leaders from the Group of Seven stressed the urgent need to reduce the economic fallout of the ongoing Middle East conflict, warning that a prolonged war could weigh heavily on global growth. Meeting on the sidelines of the International Monetary Fund and World Bank Group spring gatherings in Washington, officials also reaffirmed the importance of working toward a lasting peace.

The conflict was one of the top issues discussed by finance ministers and central bank governors, alongside concerns about securing supply chains for critical minerals. The group highlighted that disruptions from geopolitical tensions could further strain global markets and economic stability if not addressed promptly.

In addition, G7 officials reiterated their commitment to supporting Ukraine amid ongoing Russian aggression. The discussions, led under France’s G7 presidency, underscored a broader effort to manage geopolitical risks while safeguarding the global economy from escalating shocks.

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European Union foreign policy chief Kaja Kallas said Iran’s government is undermining its own future by launching indiscriminate attacks across the region. Speaking to reporters, she accused Tehran of pursuing a strategy aimed at spreading instability and escalating conflict in the Middle East, warning that such actions could ultimately backfire on the Iranian leadership.

Tensions escalated further after Turkey reported that NATO air defence systems intercepted an Iranian ballistic missile heading toward Turkish airspace. Radosław Sikorski, Poland’s foreign minister, criticised Iran’s actions, saying the country was widening the conflict by targeting nations that were not directly involved in the war.

Kallas also warned that the growing Middle East crisis risks diverting international attention away from the war in Ukraine. While she noted that the conflict could weaken Russia by costing it a regional ally, she cautioned that Moscow might still benefit from rising global oil prices triggered by the escalating tensions.

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