G7 & European Union — European Central Bank

G7: G7 finance ministers agreed on the need for action to tackle trade imbalances and address the economic fallout from the Iran war, including supporting vulnerable countries and diversifying critical mineral supplies.

European Union — European Central Bank: The European Union — European Central Bank raised interest rates in response to inflation fueled by the Iran war, becoming the first major central bank to do so, aiming to dampen consumer price inflation.

G7: The G7 leaders welcomed the interim deal between the US and Iran, demanding a ceasefire in Lebanon and expressing readiness to contribute to securing shipping in the Strait of Hormuz. They also emphasized the need to address Iran's nuclear program.

European Union — European Central Bank: The European Union — European Central Bank (ECB) welcomed the US-Iran ceasefire, with President Christine Lagarde noting its potential to reopen the Strait of Hormuz. However, policymaker Joachim Nagel cautioned that it would not bring immediate relief to high euro zone inflation, influencing market expectations for future rate hikes.

G7: Donald Trump is expected to discuss demining the Strait of Hormuz during the G7 summit, indicating the international importance of resolving the blockade.

European Union — European Central Bank: The European Union — European Central Bank raised interest rates due to war-driven inflation, highlighting the broader economic impact of the conflict.

G7: The G7 organized a loan program for Ukraine, which is currently funded by interest raised from Russian assets.

European Union — European Central Bank: The European Union — European Central Bank is concerned that the reparations loan plan could undermine confidence in the euro single currency.