Ahead of the meeting of finance ministers from the G7 advanced economies in Paris on Monday, a senior European official highlighted how the situation in the Middle East underscores the vulnerability of the interconnected global economy to external shocks. In a statement, Eurogroup President Kyriakos Pierrakakis emphasized, "Reopening the Strait of Hormuz and achieving a complete end to the conflict are crucial to mitigating its economic impact." The Eurogroup, which brings together ministers from eurozone countries, is represented at this G7 meeting by Pierrakakis, who also serves as Greece's finance minister. The core members of the G7 include the United States, the United Kingdom, Canada, France, Germany, Italy, and Japan. Pierrakakis noted, "The European economy has demonstrated resilience in the face of this energy crisis. However, even if the conflict is resolved quickly, the global economy will still feel the pressure." In recent weeks, long-term borrowing costs have surged sharply across several G7 economies. Investors are concerned that tight energy supplies, due to the war in Iran cutting off oil and gas shipments through the critical Strait of Hormuz, will lead to rising inflation. Following a week of turbulent inflation data, U.S. Treasury yields spiked significantly on Friday, as traders also attempted to price in the interest rate policies of the new Federal Reserve Chair, Kevin Warsh. The yield on the 30-year U.S. Treasury surged nearly 11 basis points to 5.121%, reaching its highest level since May 22, 2025, and approaching its peak since October 2023. In the UK, the yield on 30-year government bonds, known as gilts, is at its highest level since the late 1990s, driven by political instability and concerns over rising inflation. Japan, a major energy importer, is particularly sensitive to inflation pressures related to the war in Iran, and its bond yields have also risen sharply in recent days. Bond yields move inversely to prices. When market confidence in the government issuing the bonds wavers, traders typically demand higher yields for investing in the debt. Meanwhile, oil prices remain elevated. International benchmark Brent crude futures for July delivery rose over 3% on Friday, closing at $109.26 per barrel. U.S. West Texas Intermediate (WTI) crude futures for June delivery increased over 4%, settling at $105.42 per barrel. Brent crude prices have risen 74% year-to-date but remain below the high of $118 per barrel touched in late April. The International Energy Agency (IEA) warned in its monthly update last week that global oil inventories are declining at a record pace to offset significant supply disruptions in the Middle East. If the Strait of Hormuz does not reopen, inventories will approach critical levels. As a result, the IEA stated that oil and fuel prices are likely to rise further ahead of the peak demand season this summer.