As the chief economist of JP Morgan forecasts that Brent crude could hit $150 a barrel if the Strait of Hormuz closure continues for only one month more and nations across the globe warn of impending energy “catastrophes,” central bankers and energy and finance ministers of the G7 bloc (Canada, France, Germany, Italy, Japan, the United States, and the United Kingdom) held an “unprecedented joint meeting” (virtually) on Monday to “assess the evolving situation in the Middle East and its implications for energy markets, the global economy, and financial stability.”
No decisions were taken, at least that could be announced publicly in their final communiqué. But rest assured, the G7 Central Banks “are strongly committed to maintaining price stability, and to ensuring the continued resilience of the financial system;” the G7 Energy and Finance Ministers remain strongly committed “to ensuring well-functioning, stable, and transparent energy markets;” and that the whole lot of them “stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market.” Meanwhile the IMF, the World Bank Group, the OECD, the International Energy Agency, and the Financial Stability Board (FSB) will “deepen their assessments” of what is happening, and report back to these august officials on such things as “critical minerals and food security” and, what most concerns these officials, “potential financial market vulnerabilities.”
