Iran's actions risk 'global economic instability', says G7; warns West Asia conflict may escalate

Iran's actions risk undermining international trade and creating global economic instability, the G7 said, warning that its support for Yemen's Houthis could further exacerbate the conflict in West Asia and threaten regional and global energy security.

In a statement, the G7 said, "Iran's reprehensible actions constitute a dangerous pattern of escalation, risks further exacerbating the conflict" and that "Iran's actions risk undermining international trade, creating global economic instability."

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The grouping also condemned continued Houthi strikes in Yemen and against Saudi Arabia, saying the situation represented an unacceptable threat to regional stability, security and global energy security.

The G7 said it "consider situation in Yemen represents unacceptable threat to regional stability and security, to global energy security".

It said it "condemn in the strongest terms unacceptable continued strikes carried out by the Houthis in Yemen and against Saudi Arabia".

The G7 called on the Houthis to immediately halt military actions, threats and attacks against civilian shipping.

It said it "call on Houthis to immediately cease all military actions, threats and attacks against civilian shipping".

The grouping also called on Iran to end its arming and support of the Houthis, saying this was in violation of United Nations Security Council resolutions.

The G7 said it "call on Iran to end its arming of and support for the Houthis in violation of United Nations Security Council resolutions".

Oil routes face fresh pressure

The G7 warning comes as the escalation involving the Houthis has put further pressure on oil-export routes in the region. Reuters reported that Saudi Aramco has increased exports through the Strait of Hormuz after attacks on its East-West Pipeline disrupted some shipments through the Red Sea port of Yanbu.

Saudi Aramco loaded about 14 million barrels of crude on seven supertankers inside the Gulf on Sunday, according to tanker-tracking data cited by Reuters. Oil prices also remained above $100 a barrel, with Brent crude futures at $100.57 a barrel on Tuesday.

The Houthi advance has also raised concerns over maritime trade. Reuters reported that the group has been pushing to seize strategic heights in Yemen to cut off the Red Sea coast from areas held by Saudi-backed forces.

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The European Union has separately warned that the worsening situation is affecting European interests and global shipping, with its Aspides naval mission seeking additional warships and air assets to address the increased threat to vessels in the region.

The G7's comments come as tensions across West Asia remain elevated, with disruptions to key shipping and energy routes raising concerns over the potential economic fallout from a prolonged conflict.