Speaking to reporters at the lakeside resort of Evian-les-Bains at the close of the G7 summit in France, President Donald Trump defended the United States' decision to endorse a peace deal with Iran, saying his priority was to prevent a deep economic downturn.
"So the one thing I didn’t want to see is, I didn’t want to see economic catastrophe. If you kept this going, that could have happened," the president told the assembled press corps.
He additionally invoked the memory of the U.S. presidency during the 1929 market collapse, saying he did not want to be like Herbert Hoover, who held the presidency in October 1929 when the stock market crash led to the loss of billions of dollars and helped trigger what became known as the Great Depression.
The regional conflict, which began after U.S. and Israeli strikes on Iran on February 28 and subsequently broadened, has had immediate macroeconomic effects, according to observers cited in the briefings surrounding the summit closure. Energy prices have risen sharply, contributing to renewed inflationary pressures, and there are growing concerns about a pronounced food supply crisis in developing countries.
Economists responding to the deal described it as favorable news for the global economy, while cautioning there are substantial risks if the agreement collapses and the fighting intensifies. They note that normalizing trade flows will not be instantaneous and could require months or more, slowing the recovery of global commerce.
Analysts focused on the fuel and maritime sectors add that logistical and supply-chain disruptions will take time to resolve. Their assessments indicate bunker fuel provision and other ship-fueling operations may need up to a year to return to pre-conflict norms, prolonging elevated transport costs and complicating supply routes.
Context and consequences
- President framed the deal as a defensive economic measure aimed at averting wider market damage.
- Immediate effects of the regional conflict include higher energy prices and renewed inflationary pressures.
- Concerns persist about food supply disruptions in developing countries and prolonged disruptions to maritime fuel and trade flows.