An aerial photo shows the Greek-flagged crude oil tanker “Asahi Princess” off the coast of Syria’s Baniyas refinery port, near the Mediterranean Sea on April 15, 2026.
Bakr Alkasem Afp | Getty Images
Ahead of a meeting of finance ministers of the Group of Seven advanced economies in Paris on Monday, Europe’s top official says the situation in the Middle East has revealed how the interconnected global economy is exposed to external shocks.
“Opening the Strait of Hormuz and ending the conflict is very important in easing the impact on the economy,” Eurogroup President Kyriakos Pierrakakis said in a statement.
The Eurogroup is a group of ministers from the euro area and is represented at the G7 meeting by Pierrakakis, who is also Greece’s finance minister. The main members of the G7 are the US, UK, Canada, France, Germany, Italy and Japan.
“The European economy has shown resilience in the face of this energy crisis. However, the global economy will feel the pressure – even if the conflict is resolved quickly,” said Pierrakakis.
Long-term borrowing costs in several G7 economies have risen in recent weeks, as investors worry about rising inflation caused by tight energy supplies while Iran’s war chokes oil and gas supplies through the key Strait of Hormuz.
US Treasury yields rose on Friday following a week of dodgy inflation data and as traders eyed an interest rate policy under new Federal Reserve Chairman Kevin Warsh.
The 30-year bond yield jumped nearly 11 basis points to yield 5.121%, the highest since May 22, 2025, and approaching the highest since October 2023.
The US 30-year Treasury yield
In the UK, yields on 30-year government bonds, known as gilts, have traded sharply higher since the late 1990s due to a mix of political instability and inflationary concerns.
Japan, which is particularly sensitive to inflationary pressures linked to the Iran war, given its status as a major energy importer, has also seen bond yields rise sharply in recent days.
Bond yields and prices move in opposite directions, with traders often commanding higher yields on debt investments when confidence in the government issuing bonds is shaky.
Meanwhile, oil prices remain high.
International Brent crude futures for July gained more than 3% to close at $109.26 a barrel on Friday. US West Texas Intermediate futures for June advanced more than 4% to settle at $105.42 per barrel.
Brent crude prices are up 74 percent year-to-date, but below the peak of $118 a barrel reached in late April.
Global oil production is falling at a record pace to compensate for major supply disruptions in the Middle East and will reach critical levels if the Strait of Hormuz does not reopen.
Higher oil and gasoline prices may be ahead of peak demand this summer as a result, the International Energy Agency warned last week in its monthly update.
“Buffers are rapidly shrinking amid ongoing disruptions, which may herald future price increases,” the IEA said.
