G20 finance ministers and central bank governors arrived in Bangkok facing an economic problem that no country could solve alone. Their meeting, held alongside the annual gatherings of the International Monetary Fund and World Bank, was expected to focus on the fallout from the war involving Iran. Instead of producing a shared plan, the talks closed without a joint communique or even a chair’s statement, leaving delegates to describe broad concern rather than concrete agreement.
At the center of the discussion was the Strait of Hormuz, the narrow waterway through which a large share of the world’s oil passes. Its disruption has helped keep crude prices elevated for months, sending costs through fuel markets, transport networks and household budgets. Australian Treasurer Jim Chalmers argued that reopening the strait was essential, saying the global economy urgently needed an end to the conflict. He warned that the war was pushing up fuel prices, inflation and interest rates, while also calling for an end to attacks on commercial shipping and energy infrastructure.
The meeting also revealed how difficult coordinated policy has become. Delegates discussed inflation driven by expensive oil, rising long-term interest rates and the risk of excessive currency swings, with Japan urging closer monitoring of financial markets. But the absence of the US Treasury Secretary, whose country holds the G20 presidency, underscored the political strain surrounding the talks. Previous meetings have already failed to produce consensus, particularly over trade language, and this Bangkok session suggested that the same divisions remain unresolved.
President Donald Trump has continued to insist that the war will end soon, predicting that oil prices will fall sharply once Iran is prevented from acquiring nuclear weapons. Yet markets appear less convinced. Even if hostilities stop quickly, officials acknowledge that supply chains, insurance costs and energy markets could take considerable time to stabilize. For now, the G20 has identified the problem clearly, but it has not yet shown that it can act together to contain it.
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