G20 ministers meet in Bangkok amid Middle East conflict and debt concerns

G20 finance ministers and central bank governors met in Bangkok, Thailand, alongside the annual meetings of the International Monetary Fund and the World Bank to address escalating global economic risks. The summit concluded without a joint declaration due to political divisions among member nations.

A primary focus of the discussions was the economic impact of the conflict involving the United States, Israel, and Iran. Disruptions to maritime traffic in the Strait of Hormuz have contributed to crude oil prices remaining above $100 per barrel for much of the last eight months. Australian Treasurer Jim Chalmers emphasized that the conflict is driving up fuel prices, inflation, and interest rates globally, calling for the restoration of major maritime routes.

Policymakers also addressed rising sovereign debt, which has exceeded 100 percent of GDP in major economies including the United States, Canada, Japan, Italy, and France. IMF Managing Director Kristalina Georgieva warned that increasing public debt threatens global economic stability, potentially forcing governments to implement tax hikes or spending cuts.