Summary Washington to address missiles and regional groups with Gulf allies
EVIAN-LES-BAINS, France (Agencies) – US President Donald Trump has defended the agreement reached with Iran, saying the deal helped prevent a potential economic catastrophe that could have followed a prolonged conflict in the Middle East.
Speaking after the G7 summit in France, Trump said avoiding further escalation was crucial to protecting global markets, energy supplies and international trade.
“The one thing I didn’t want to see is economic catastrophe. If you kept this going, that could have happened,” Trump told reporters at the lakeside resort of Evian-les-Bains.
The comments came after weeks of heightened tensions following US and Israeli strikes on Iran on February 28, which expanded into a wider regional confrontation. The conflict pushed energy prices higher, increased inflation concerns and raised fears of major disruptions to food and fuel supplies, particularly in developing economies.
Trump compared the possible economic impact of a prolonged crisis to the 1929 stock market crash during the presidency of Herbert Hoover, which contributed to the Great Depression. He said he did not want to face a similar situation during his administration.
Strait of Hormuz
Trump said the Iran agreement and diplomatic progress had helped restore stability, particularly regarding the Strait of Hormuz, one of the world’s most important maritime routes for energy shipments.
The US president said keeping the strait open was essential for global trade and energy security, warning that a closure could have created serious consequences for economies worldwide. He said the agreement with Iran helped ensure continued access through the strategic waterway and reduced uncertainty in international markets.
The Strait of Hormuz, located between Iran and Oman, carries a significant portion of the world’s oil shipments and remains closely monitored by governments, energy companies and financial markets due to its importance for global supply chains.
Economists said the agreement could provide support for the global economy but warned that risks remain if diplomatic efforts fail and tensions rise again. Analysts also noted that restoring normal trade flows would take time, while fuel sector and maritime experts said returning bunker fuel supplies to normal levels could take months or longer.
Trump also said efforts were continuing to prevent Iran from obtaining nuclear weapons, describing the agreement as a strong barrier against Tehran developing such capabilities. He said diplomatic and strategic measures would continue as part of the broader approach to regional security.
Iran agreement
Alongside the Iran agreement, Trump said the United States would hold discussions with Gulf countries on Iran’s ballistic missile programme and its support for regional proxy groups.
During his press conference, Trump said Syria’s leader wanted to target Hezbollah, an Iranian-backed group, with “precision” operations inside Lebanon. He also said Lebanon’s leader was expected to visit Washington in the coming weeks.
The discussions are expected to focus on wider regional security issues as the US seeks to address concerns beyond the nuclear issue, including missile capabilities and armed groups linked to Iran.
Market response
Trump said recent developments had contributed to a decline in global crude oil prices, adding that greater stability in energy markets could support economies and consumers.
He said uninterrupted energy supplies were important for global economic growth and that the United States would continue efforts aimed at maintaining stability.
