Britain’s finance minister will call on her Group of Seven (G-7) peers on March 30 to avoid unilateral actions like new trade barriers amid the Iran conflict, arguing that these measures could jeopardize energy security further.
In a meeting involving G-7 finance ministers, energy ministers, and central bank governors, Rachel Reeves will assert that the G-7 “must collaborate, rather than taking actions that increase pressure on partners or diminish shared resilience,” according to a statement from her ministry.
The G-7 affluent countries comprise the US, UK, Canada, France, Germany, Italy, and Japan, as well as the European Union.
Reeves is anticipated to assert that protectionism and fresh trade barriers might hinder supply chains and increase expenses, emphasizing that collaboration is essential to maintain the flow of energy and goods and to reduce costs in the long run.
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The conflict against Iran initiated by the US and Israel on February 28 has expanded throughout the Middle East, resulting in thousands of deaths and causing the most significant disruption to global energy supplies in history, impacting the world economy.
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British Prime Minister Keir Starmer will hold an emergency meeting regarding the economic impact of the war in Iran on March 23, which will include Finance Minister Rachel Reeves and Bank of England Governor Andrew Bailey, as stated by the government.
Investors are preparing for a turbulent week in financial markets after Iran warned it would target the energy and water infrastructure of Gulf neighbors if US President Donald Trump acts on his threat to attack Iran’s electricity grid.
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Britain is observing with notable apprehension. The nation's considerable reliance on imported natural gas, ongoing high inflation, and strained public finances have caused its government bonds to experience a much sharper drop compared to global counterparts.