France's finance minister Roland Lescure told the Financial Times that governments cannot decide on releasing additional oil reserves to address Iran war-driven supply disruptions without knowing how long the conflict will last. He hosted G7 finance ministers in Paris this week, including US Treasury secretary Scott Bessent, where the issue was not discussed.

Lescure emphasized that strategic reserves are finite and cannot be deployed without visibility on conflict duration and intensity. The Strait of Hormuz remains largely closed, blocking about 20% of global oil and LNG shipments. Previous IEA-coordinated releases of 400 million barrels in March helped reduce oil prices by 11%, though Brent crude now trades around $108 a barrel.

The economic fallout has forced the EU to cut growth forecasts to 0.9% from 1.2%, while inflation expectations jumped to 3%. France faces €6 billion in additional war-related costs, primarily from higher interest payments. The government expanded crisis aid to €1.18 billion total but maintains restraint compared to pandemic-era support.

With the global economy in limbo until the Strait reopens, central banks face the dilemma of whether to treat this as recessionary or stagflationary. Lescure described the situation as "orange warning lights" rather than red, citing France's nuclear energy mix and social welfare system as buffers against the crisis.