G7 Summit 2025: Leaders Grapple with Middle East Tensions and Economic Instability

KANANASKIS, Alberta — As the 51st G7 Summit convenes in Kananaskis, Alberta, on June 16-17, 2025, world leaders face a complex array of challenges, including escalating Middle East tensions, global economic instability, and pressing climate change concerns.

The summit brings together leaders from the G7 nations: Canadian Prime Minister Mark Carney, U.S. President Donald Trump, French President Emmanuel Macron, German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Japanese Prime Minister Shigeru Ishiba, and UK Prime Minister Keir Starmer. Representatives from the European Union, including President of the European Council António Costa and President of the European Commission Ursula von der Leyen, are also in attendance. Additionally, leaders from Australia, Brazil, India, Mexico, South Africa, South Korea, and Ukraine have been invited to participate.

The agenda is dominated by the recent escalation in the Israel-Iran conflict. On June 13, Israel launched strikes targeting Iranian nuclear facilities and military infrastructure, leading to a significant surge in global oil prices. Brent crude spiked by 11%, reaching its highest level in a month. The conflict has raised concerns about potential disruptions to global energy supplies, particularly through the Strait of Hormuz, a critical chokepoint for one-fifth of the world's oil exports.

U.S. President Donald Trump has called for immediate negotiations between Israel and Iran to de-escalate the situation. British Prime Minister Keir Starmer and German Chancellor Friedrich Merz have emphasized the need to prevent Iran from acquiring nuclear weapons-capable materials. European Commission President Ursula von der Leyen labeled Iran as a key source of instability and called for de-escalation.

The summit also addresses global economic stability and trade relations. President Trump's imposition of tariffs on allies, including Canada, has strained traditional alliances. He has advocated for re-admitting Russia into the G7 and potentially including China, despite ongoing friction over tariffs. These policies have led to tensions among member nations, with some leaders expressing concerns over the impact on global trade and economic growth.

Climate change remains a critical topic, though specific details of discussions have not been highlighted. The European Union is pushing forward with plans to eliminate remaining Russian fossil fuel imports, although debates persist, particularly about dependence on Russian nuclear technology. EU energy ministers are meeting to discuss these strategies, with a full proposal expected soon.

In a departure from tradition, Canada has opted to forgo a full joint communiqué, instead planning chair summaries to sidestep potential disagreements. This approach aims to maintain unity among member nations despite differing positions on various issues.

The Israel-Iran conflict has significantly impacted global markets. Oil prices surged by over 10%, reaching their highest levels since January, reflecting market fears of disruptions to oil supplies from the region, especially via the strategic Strait of Hormuz. U.S. stock markets closed lower, with the Dow Jones Industrial Average falling by 1.79% and the S&P 500 by 0.69%. Safe-haven assets such as gold and the Swiss franc increased in value.

Given the summit's location in Kananaskis Country, Alberta, concerns have been raised about wildlife safety, particularly for threatened grizzly bears. With extraordinary security measures planned, armed security forces will be patrolling the area, raising fears of potential harm to wildlife.

As the 51st G7 Summit unfolds, the world watches closely to see how these global leaders navigate the intricate web of international conflicts, economic challenges, and environmental concerns, striving to forge a path toward stability and cooperation.