Lagarde Calls Bessent Out on Iran Damage During G-7 Video Talks

Christine Lagarde used an audience of high-level Group of Seven officials to challenge Treasury Secretary Scott Bessent’s optimism that the Iran war’s economic fallout will be short-lived, according to people familiar with the matter.

Bessent played down the damage caused by weeks of fighting in the Middle East and argued that disruptions — including the de-facto closure of the Strait of Hormuz — will be temporary, the people said, asking not to be identified revealing confidential discussions.