G7 Summit in Turmoil: Israel-Iran Conflict Dominates Global Agenda, Markets on Edge

Israel-Iran Conflict: The Flashpoint of the 2025 G7 Summit
Did you know? The 2025 G7 summit in Canada has become a battleground not just of policy, but of global anxieties. The escalation between Israel and Iran has pushed all other issues aside, making it the single most urgent topic for world leaders. Over the past week, Israeli airstrikes on Iranian nuclear and energy sites, and Iran’s retaliatory missile barrages, have resulted in hundreds of civilian casualties and widespread destruction. Leaders like Germany’s Friedrich Merz have stressed preventing Iran from acquiring nuclear weapons and affirming Israel’s right to self-defense. But consensus is elusive, with deep divisions among G7 members and the U.S. President Trump refusing to sign a joint statement calling for de-escalation. The summit, initially meant to address trade and climate, is now a crisis room for Middle East tensions.
Global Markets in Shock: Oil, Gold, and the Domino Effect

Everyone’s talking about it: the Israel-Iran conflict isn’t just a regional affair—it’s shaking the entire global economy. For the first time, both countries have targeted each other’s energy infrastructure. Israeli strikes on Iran’s South Pars gas field and Tehran’s refineries have forced partial shutdowns, while Iranian missiles damaged Israeli oil facilities near Haifa. The result? Oil prices shot up by over 7% in a single day, with experts warning of further spikes if the conflict drags on. Brent and WTI crude futures are hovering around $72–$80, and the mere threat of a blockade in the Strait of Hormuz—the world’s oil artery—has traders and governments on edge. Meanwhile, gold prices have surged to near-record highs as investors scramble for safe havens. This volatility is already hitting consumers at the pump and could fuel a new wave of global inflation.
The Korean and East Asian Angle: Energy Security and Economic Risks
Did you realize how much Northeast Asia relies on Middle Eastern oil? For countries like South Korea, Japan, and Taiwan, the Israel-Iran conflict is more than a distant headline. If the Strait of Hormuz is threatened or closed, these economies could face skyrocketing energy costs and supply disruptions. Korean petrochemical giants like LG Chem, Lotte Chemical, and SK Geo Centric are bracing for higher raw material prices and potential production cuts. Local financial markets are jittery: the KOSPI index, after a strong rally, dipped sharply on news of the conflict. Experts warn that prolonged instability could derail Korea’s economic recovery and trigger broader market corrections across Asia.
G7 Leaders: Divided Voices and the Struggle for Unity
What’s the mood among world leaders? Not exactly harmonious. The UK and France are urging restraint and dialogue, while Japan has openly criticized Israel’s strikes. President Trump, on the other hand, has praised Israel’s actions and called for Iran to return to nuclear negotiations, but has refused to endorse a joint G7 statement on de-escalation. This lack of unity is glaring: Canada’s Prime Minister has even abandoned the tradition of a final communique, fearing it would only highlight divisions. The summit has turned into a series of tense bilateral meetings, with trade disputes and the Ukraine war pushed to the sidelines.
Community Buzz: Korean Netizens React
Let’s check the pulse of Korean online communities. On DC Inside and FM Korea, users are split: some worry about the impact on fuel prices and the economy, while others debate the geopolitical stakes. Popular comments include: 'If oil prices go up, everything in Korea gets more expensive,' and 'Why is the G7 always so divided when it matters most?' On Naver and Daum, bloggers are analyzing the impact on Korean exports, the won-dollar exchange rate, and even the potential for a new global recession. There’s a sense of frustration that international institutions seem powerless to stop the escalation.
Cultural and Historical Context: Why the Israel-Iran Conflict Matters Globally
Why are people so alarmed? The Israel-Iran rivalry is rooted in decades of ideological, religious, and strategic competition. Iran’s nuclear ambitions have long been a red line for Israel, which fears a nuclear-armed Iran could threaten its survival. The U.S. and European powers have tried for years to contain the conflict through sanctions and diplomacy, but the latest military exchanges mark a dangerous new phase. For G7 countries, the stakes are not just about Middle East peace—they’re about the stability of global energy supplies, the integrity of financial markets, and the credibility of Western alliances. For international readers, understanding this context is key to grasping why the G7 is so consumed by the crisis—and why the world is watching so nervously.
What’s Next? Uncertainty and the Search for Solutions
So, what’s the outlook? With Trump leaving the summit early and no joint G7 statement, the path forward is unclear. Some analysts hope for a return to nuclear talks, while others fear further escalation. The economic fallout is already being felt, with oil and gold prices spiking and stock markets turning volatile. For Korea and other energy-dependent nations, the coming weeks will be critical in managing supply risks and market shocks. The G7’s ability to present a united front—and to influence the warring parties—remains in doubt. As one Korean blogger put it: 'We’re all just waiting for the next headline.'
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