In a joint statement issued after meetings in Paris, the G7 officials said it was “imperative” to restore normal transit through the strategic waterway, which handles a substantial share of global oil and liquefied natural gas shipments.

The statement was released following discussions among finance chiefs from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as tensions linked to the Middle East conflict continue to disrupt international trade and energy flows.

The ministers also emphasized the need to address widening global current account imbalances and reaffirmed their commitment to multilateral coordination in responding to threats facing the world economy.

The G7 warned against arbitrary export restrictions and stressed the importance of maintaining stable and predictable energy markets at a time of heightened geopolitical uncertainty and supply chain volatility.

The Strait of Hormuz, located between Iran and Oman, remains one of the world’s most strategically significant maritime chokepoints. Any disruption to traffic through the corridor can have immediate consequences for oil prices, shipping costs and inflationary pressures across major economies.

The latest G7 statement reflects growing international concern over the economic fallout from escalating regional tensions and the broader impact on global trade, energy security and financial markets.

The agreed, subject to approval by the IMF’s executive board, would release about $1 billion under the Extended Fund Facility and an additional $210 million under the Resilience and Sustainability Facility, bringing total disbursements under the current program to $4.5 billion.

Under the broader $7 billion program, the Washington-based lender has urged Islamabad to maintain a tight and data-dependent monetary policy stance to anchor inflation expectations and reinforce foreign exchange buffers.

The IMF’s guidance comes as global energy prices rise and regional geopolitical tensions add uncertainty to Pakistan’s inflation outlook, particularly given its reliance on imports.

Pakistan’s central bank has held its benchmark policy rate steady at 10.5% this month, pausing an easing cycle as authorities weigh the risks of renewed price pressures against the need to support economic stability.

The staff-level agreement marks a critical procedural step in unlocking further funding, which analysts say remains essential for sustaining macroeconomic stability and meeting external financing needs.