Klingbeil is due to travel to Paris for a meeting of G7 finance ministers and central bank governors scheduled for Monday and Tuesday, where the Iran conflict and its economic implications are expected to feature prominently on the agenda.

“The G7 is the right place to discuss how we can help bring about a lasting end to the war in Iran,” Klingbeil said in remarks released before the meeting. He added that Germany and its European partners remained committed to cooperation, open trade and rules-based international partnerships.

The minister said recent geopolitical and economic shocks had reinforced the need for Germany and Europe to strengthen resilience in critical sectors including raw materials, energy supplies and industrial supply chains.

The conflict has heightened concerns over shipping through the Strait of Hormuz, one of the world’s most strategically important oil transit routes. Any prolonged disruption could affect global energy markets and trade flows.

Klingbeil also said finance ministers from Brazil, India, South Korea and Kenya would participate in discussions in Paris as part of a broader effort to deepen international economic partnerships beyond the G7 bloc.

He said Germany would continue supporting Ukraine despite mounting tensions in the Middle East and would not allow the Iran crisis to divert attention from Russia’s war in Ukraine.

Klingbeil is expected to sign a double taxation agreement with Ukrainian Finance Minister Sergii Marchenko during the Paris meetings, a step he said would strengthen economic cooperation and provide greater legal certainty for businesses operating between the two countries.

Modi’s six-day visit starts in the United Arab Emirates before continuing to the Netherlands, Sweden, Norway and Italy, with New Delhi seeking to secure energy supplies and deepen economic ties with Europe following the India-European Union free trade agreement finalized in January.

The trip comes as disruptions around the Strait of Hormuz and Gulf maritime corridors continue to pressure energy-importing economies. India, the world’s third-largest oil buyer, typically sources nearly half of its crude imports through the strategic waterway.

India’s foreign ministry said discussions in the UAE would focus on “strengthening our energy security,” including cooperation on oil and liquefied petroleum gas supplies. The Gulf nation hosts an Indian diaspora estimated at 4.5 million people and remains one of New Delhi’s key energy partners.

Analysts said the visit reflects India’s broader push to diversify strategic partnerships while positioning itself as an alternative manufacturing and technology hub amid shifting geopolitical alignments and supply-chain realignments away from China.

“The recently concluded India-EU free trade agreement has already created momentum,” former Indian ambassador Anil Wadhwa told AFP, adding that India was seeking to position itself as a “trusted economic, technological and clean energy partner.”The European leg of the tour will focus heavily on trade and investment cooperation.

Modi is scheduled to meet Dutch leaders later on Friday for talks expected to cover bilateral trade, defense cooperation, semiconductors, water management, agriculture and healthcare.India and the EU concluded a landmark free trade agreement in January, which Modi described as the “mother of all deals.” European policymakers increasingly view India, the world’s most populous country, as a critical market and strategic counterweight in Asia.

In Sweden, Modi will attend a European business leaders forum alongside Ursula von der Leyen before traveling to Oslo for an India-Nordic summit, marking the first visit by an Indian prime minister to Norway in more than four decades.

Former Indian ambassador K.C. Singh said the Gulf leg of the visit also reflected changing regional alignments following escalating Middle East tensions.“A new international environment now prevails,” Singh told AFP, citing fractures within the Gulf Cooperation Council and growing strategic competition involving Iran, Gulf states, the United States and Israel.

Modi also met Iranian Foreign Minister Abbas Araghchi in New Delhi on Thursday ahead of the trip, underlining India’s effort to maintain diplomatic engagement across rival regional blocs.Energy analysts said New Delhi could pursue agreements linked to strategic petroleum reserves and long-term LPG supply arrangements to reduce vulnerability to price shocks and shipping disruptions.

The Nordic portion of the tour is also expected to include discussions on Arctic cooperation and climate-linked shipping routes. India operates a research station on Norway’s Svalbard archipelago and has increasingly monitored the commercial and environmental implications of melting polar sea ice.

Indian lawmaker Shashi Tharoor wrote in the Indian Express that India and Nordic nations shared interests in preserving international stability “at a time when the turbulence of the Trumpian era has unsettled global norms.”

The final stop of Modi’s tour will be Italy on May 19, where he is expected to meet Prime Minister Giorgia Meloni for talks on bilateral cooperation and regional security issues.

Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, Takaichi said both countries would act with urgency to strengthen energy security amid a supply squeeze linked to reduced shipping through the strait.

Roughly one-fifth of the world’s oil typically transits through the Strait of Hormuz, with flows curtailed after Iran throttled shipping following attacks by the United States and Israel. About 80 percent of that oil is destined for Asia, according to the International Energy Agency.

“The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,” Takaichi told reporters, adding that Japan and Australia would maintain close communication to respond to the situation.

Both governments said they would seek to enhance resilience and autonomy in energy supply chains. Australia is Japan’s largest supplier of liquefied natural gas, while Japan provides a share of refined fuel products, including diesel, to Australia.

The two sides issued a series of agreements covering energy, economic cooperation, defense and critical minerals. Albanese said the measures would help shield Australia from “global shocks” stemming from conflict in the Middle East.

Japan has also emphasized the importance of securing stable supplies of critical minerals used in semiconductors, electric vehicle batteries and defense systems. Australia has positioned itself as a key supplier of such resources, highlighting its reserves as an alternative to concentrated global supply chains.

Defense cooperation has expanded alongside economic ties, including a deal valued at around Aus$10 billion for Japan to supply Mogami-class stealth warships to the Australian navy.

In a separate foreign policy address in Vietnam over the weekend, Takaichi reiterated Japan’s commitment to a “free and open Indo-Pacific,” a strategy aimed at strengthening regional security and supply chain resilience.
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The commitment came during Takaichi’s visit to Hanoi, where the two leaders discussed expanding the Comprehensive Strategic Partnership established in 2023, covering sectors including energy, critical minerals, artificial intelligence, semiconductors and space cooperation.

“The two sides identified economic security as a new priority area for bilateral cooperation,” Takaichi told reporters after the meeting.“With regard to critical minerals, both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains,” she said.

The talks come as Japanese investment flows into Vietnam weakened sharply despite stronger trade ties. New Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter of 2026, while bilateral trade rose 12.3% to $13.7 billion during the same period, according to Vietnamese government and customs data.

Japan remains one of Vietnam’s largest foreign investors, with major Japanese manufacturers operating extensive production bases in the country across electronics, automotive and industrial sectors.As part of the visit, both governments signed six agreements covering infrastructure development, climate action, agriculture, digital transformation, technology cooperation and space development, reinforcing broader strategic cooperation beyond trade.

Vietnam has also been seeking support from Japan and other partners to stabilize oil supplies as conflict in the Middle East pushes up crude prices and disrupts shipping routes.Under Japan’s $10 billion Power Asia Initiative, designed to strengthen energy self-reliance across Asia, Tokyo will help arrange crude oil supplies for Vietnam’s Nghi Son Refinery and Petrochemical Complex, one of the country’s most important energy facilities, Prime Minister Hung said.

Takaichi is also scheduled to meet To Lam and senior Communist Party leadership later on Saturday and deliver a keynote address at Vietnam National University.Her speech is expected to mark a decade since former Prime Minister Shinzo Abe introduced Japan’s “Free and Open Indo-Pacific” strategy, a regional framework aimed at strengthening rules-based order, maritime security and economic cooperation across Asia.

Vietnam has publicly supported Japan’s regional initiatives, including the Free and Open Indo-Pacific Vision, aligning them with ASEAN’s broader Indo-Pacific outlook and emphasizing international law, regional stability and balanced strategic autonomy.Hung said Vietnam viewed the framework as contributing positively to “peace, stability, cooperation and development in the region and beyond.”

The visit reflects Tokyo’s broader effort to deepen strategic partnerships across Southeast Asia as competition over technology, trade routes, mineral access and energy security intensifies across the Indo-Pacific.

Industrial firms reported stronger profit growth, supported by recovering manufacturing demand and targeted government stimulus measures aimed at stabilizing employment and consumption.

Analysts said sustained recovery would depend on external demand and confidence in the property sector, which continues to weigh on broader economic momentum.

The talks, involving a group described as Trump’s “Board of Peace,” focused on whether DP World could partner in overseeing logistics for humanitarian aid and commercial goods entering the Gaza Strip, according to the report.

Details of the proposed arrangement, including governance structures or timelines, were not disclosed. Reuters could not independently verify the discussions.

Any such initiative would come amid ongoing international efforts to plan for reconstruction and aid delivery in Gaza, where infrastructure has been severely damaged by conflict.

Even before the latest hostilities, analysts described Iran’s economy as deeply fragile, weighed down by sanctions, energy imbalances, inflation and declining exports. The impact of renewed strikes and the effective closure of Hormuz a critical artery for global energy shipments has sharply intensified those pressures.

The blockade threatens more than 90% of Iran’s annual trade, estimated at over $100 billion, according to analysts, cutting off vital oil exports that account for roughly 80% of government revenue. Estimates cited by experts suggest losses of around $435 million per day, potentially exceeding $13 billion monthly.

Energy infrastructure constraints are compounding the crisis. With limited storage capacity and continued production, Iran risks being forced to halt oil output within weeks, raising the possibility of long-term damage to oil fields and a permanent reduction in production capacity.

On the domestic front, economic indicators point to severe distress. The Iranian rial has sharply depreciated, while food inflation has surged into triple digits, eroding purchasing power and fueling social discontent.

Shortages of energy have also disrupted key industries such as steel, cement and petrochemicals.The blockade’s effects are further magnified by limited alternative trade routes. Infrastructure outside the Gulf, including overland corridors and non-Hormuz ports, can handle only a fraction of normal throughput, leaving Iran with few options to offset lost maritime access.

Internal divisions are also emerging over the management of foreign currency revenues and economic policy, with some officials warning that significant portions of export earnings are not reaching state coffers.

Former Iranian foreign minister Mohammad Javad Zarif has called for compromise, urging Tehran to consider limiting its nuclear program and reopening Hormuz in exchange for sanctions relief to prevent further economic deterioration.Analysts say the government’s response is driven less by economic logic than by strategic considerations.

Sanam Vakil of Chatham House said the conflict is viewed by Iran’s leadership as existential, limiting the likelihood of policy shifts despite economic strain.The longer-term outlook remains uncertain.

Researchers at Royal United Services Institute warn that postwar recovery could be hampered by damaged infrastructure, reduced access to regional financial networks and strained ties with Gulf partners, particularly the United Arab Emirates, a key trade hub for Iran.

With reconstruction costs expected to be substantial and trade channels constrained, the economic consequences of the conflict may prove more enduring than the military phase itself.

The visit marks the first state trip by a South Korean president to India in eight years and comes as both countries seek to strengthen supply chain resilience amid global economic uncertainty linked to the Iran conflict.Lee said the current level of economic cooperation between the two countries remains limited and called for a substantial expansion of ties.

Officials from Seoul said the two sides plan to upgrade their Comprehensive Economic Partnership Agreement to boost trade from $25.7 billion recorded last year.Discussions are expected to cover sectors including shipbuilding, finance, artificial intelligence and defence, with Lee also scheduled to attend business events alongside corporate leaders during his visit.

South Korea has increasingly looked to India as a key partner in diversifying supply chains, particularly as disruptions in the Middle East affect energy flows. Last month, Seoul sought increased naphtha supplies from India to offset potential shortages linked to regional tensions.

India accounted for about 8% of South Korea’s naphtha imports last year, and officials say expanding energy trade could also help address imbalances in bilateral commerce. South Korea recorded a trade surplus of $12.8 billion with India, exporting $19.2 billion worth of goods while importing $6.4 billion, according to Korea International Trade Association data.

Analysts say closer cooperation in shipbuilding could emerge as a focal point, aligning India’s employment priorities with South Korea’s industrial strengths. Consumer goods and food sectors tied to the global popularity of Korean culture are also seen as potential growth areas.

Lee is expected to travel to Vietnam after concluding his India visit, as part of a broader regional outreach strategy.

Wang told Tajani that China is prepared to work with Italy to unlock further “potential” in bilateral ties, signalling interest in deepening collaboration despite broader shifts in global trade dynamics.

China is open to expanding cooperation in areas including e-commerce, agriculture and food, healthcare and the development of industrial parks, the commerce ministry said, outlining sectors seen as key to future engagement.

The meeting reflects ongoing efforts by Beijing to sustain and diversify trade relationships with European partners, as global supply chains and geopolitical alignments continue to evolve.

The state government said wages for unskilled workers would rise to about $165 per month from roughly $120, effective April 1, marking the first such policy move in response to the economic fallout from the ongoing U.S.-Israel-Iran war.

The decision followed clashes between police and workers in Manesar, located near New Delhi and home to major manufacturing facilities including Maruti Suzuki and numerous supplier units. Authorities urged workers to resume duties peacefully after the announcement.

Workers said surging food prices, driven by disrupted gas supplies, had strained household budgets. India, the world’s second-largest importer of liquefied petroleum gas, is facing one of its most severe supply disruptions in decades, prompting the government to prioritize household consumption over industrial use.

The wage hike is expected to ease pressure on workers but add to cost burdens for automakers already grappling with higher raw material prices. Companies such as Tata Motors and Mahindra & Mahindra have raised vehicle prices, while Maruti has indicated similar steps may follow.

Industrial activity in Manesar was partially disrupted as workers boycotted shifts and staged protests. Employees reported that food costs had nearly doubled, with some migrant workers returning to their home villages due to rising expenses and uncertain supplies.

Suppliers including Munjal Showa said production was affected, while firms such as Roop Polymers reported limited disruption and a return to normal operations after the protests subsided.India’s auto sector relies heavily on migrant labor, with millions traveling to industrial clusters for work.

Industry groups warned that retaining workers has become a priority, with some companies offering meals and bonuses to prevent further departures.

Executives said supply chains could take weeks to stabilize even if geopolitical tensions ease, as disruptions to energy supplies continue to ripple through manufacturing and labor markets.