Key facts
- Donald Trump stated he did not want to see an economic catastrophe.
- Trump defended the U.S. deal with Iran at the G7 summit.
- He warned that continued conflict in the Middle East could trigger economic catastrophe.
- Trump referenced Herbert Hoover and the Great Depression.
U.S. President Donald Trump defended the U.S. deal with Iran at the close of a G7 summit in France, stating he did not want to see an economic catastrophe that could have been triggered by a continued war in the Middle East. Trump told reporters that if the conflict had continued, an economic catastrophe could have occurred. He drew a parallel to Herbert Hoover, who was president when the stock market crashed in 1929, leading to the Great Depression. The ongoing war has already caused sharp increases in energy prices, renewed inflationary pressures, and concerns about food supply crises in developing countries. Economists believe the peace deal is positive for the global economy but caution about risks if the conflict intensifies. They also note that restoring normal trade flows could take months or longer, with fuel sector analysts suggesting it could take a year for bunker fuel supplies to normalize.