Another Monday, another emergency meeting.

This time it’s between G7 finance ministers, energy ministers and central bank governors, once again hosted by France, but as a virtual session. It marks the fourth time since the start of the war in Iran that the G7 has convened at a ministerial level.

The meeting fatigue is palpable.

The first virtual session of finance ministers and central bank governors on March 9 resulted in a communiqué that promised to “closely monitor the situation and developments in energy markets and… to exchange information and co-ordinate.” The criticism over the inaction was swift.

The following day, energy ministers also met virtually to take joint action on energy stockpiles alongside the IEA to try and ease the crunch. In the short term is was effective, but was also met with skepticism over the long-term impact.

Since that date, energy markets have swung wildly, including some of the biggest one-day moves for oil since the war in Ukraine broke out in 2022, and volatility has spiked.

Last week, foreign ministers met in the beautiful setting of the Vaux de Cernay Abbey, where they voiced their concerns over the longevity of the war in Iran, but gave few direct actions.

The European Union’s foreign policy chief, Kaja Kallas said: “We need an exit, not an escalation in this war. And that means there has to be a diplomatic solution so that this region will come out of it stronger and actually more peaceful. Therefore it can only be a diplomatic solution, sit down and negotiate to have a way out.”

Germany’s Foreign Minister Johann Wadepul complained, “it is not a lack of weapons, but a lack of communication” that is complicating coordinated efforts on Iran. He told Deutschlandfunk that there are preparations for the U.S. and Iran to meet directly in Pakistan “very soon.”

Iran war is a ‘catastrophe,’ G7 ministers warn — but there’s little they can do to stop it

The upcoming G7 leaders’ summit in June is also not without controversy. The French government has invited the leaders of India, South Korea, Brazil and Kenya to join the summit in Evian on June 15-17. This has caused upset with South Africa, which has been a regular guest representing the African continent at the G7 level.

French officials have said the lack of invitation is not due to pressure from the U.S., but South Africa believes the Trump administration had threatened to boycott the meeting if Cyril Ramaphosa attended. China is also not expected to attend the summit.

So why are these meetings between the G7 yielding so few actionable outcomes?

The easy answer is to blame President Donald Trump’s ‘America First’ approach for damaging multilateral relations between the U.S….

The Trump administration has pressed forward with roughly $23 billion in weapons sales to three Gulf nations, moving to bolster their defenses as the Middle East war continued to escalate with no sign of resolution.

The government has approved the arms sales to the United Arab Emirates, Kuwait and Jordan, the Wall Street Journal reported Friday, citing U.S. officials familiar with the decision.

That included more than $16 billion for air-defense systems, munitions and radar equipment for the three Mideast countries, announced on Thursday, plus an additional $7 billion in weapons to the UAE, according to the report. The latter was approved through channels that do not require public disclosure under U.S. arms export rules, according to the Journal.

The provisional arms sale, aimed at bolstering the Gulf nations’ military capabilities, came as Iran has broadened attacks to several energy infrastructure sites across the region in response to Israeli strikes on its gas facilities this week.

The proposed sale would improve the countries’ capability to “meet current and future threats” and further advance their interoperability with U.S. Joint Forces and other regional forces, the State Department said in the notices.

The administration also expanded certain previously agreed agreements to include the sale of Patriot PAC-3 missiles worth about $5.6 billion and CH-47 Chinook helicopters valued at roughly $1.32 billion, according to the Journal. The U.S. also approved $37 million in Predator XP drone sales and sustainment programs for light aircraft.

For some of the deals, the American government invoked the emergency clause of U.S. arms control law, a mechanism that allows the executive branch to proceed without the standard 30-day congressional review period, according to the report.

The oil market sent a clear signal this week that a massive release of stockpiled crude by the U.S. and its allies is nowhere near enough to address the unprecedented supply disruption triggered by the Iran war.

More than 30 nations in Europe, North America and Northeast Asia agreed to flood the market with 400 million barrels of oil in an effort to keep a lid on rising energy prices. The U.S. is leading the effort with a release of 172 million barrels from its Strategic Petroleum Reserve or 43% of the IEA total.

It is the largest release of stockpiled oil in the 50-year history of the International Energy Agency, an organization tasked with maintaining the energy security of its members during global crises.

But the oil bazooka is not inspiring confidence in the market. Crude prices have surged more than 17% since the IEA announced the emergency stockpile release on Wednesday. Brent oil prices, the international benchmark, closed above $100 on Friday for the second session in a row.

The explanation is simple, said Tamas Varga, analyst at the London-based oil broker PVM. Tankers are under attack in the Persian Gulf, the critical Strait of Hormuz remains basically closed, and Iran’s new supreme leader has vowed to keep the trade chokepoint shut.

“Until transit is reactivated, those kinds of policy announcements are going to have limited impact,” said Tom Liles, senior vice president of upstream research at consulting firm Rystad Energy.

Saudi Arabia, Iraq, Kuwait and the United Arab Emirates exported around 14 million barrels per day (bpd) before the war, Liles said. Around 5 million bpd to 6 million bpd can be exported through Saudi and UAE pipelines that terminate at the Red Sea and Gulf of Oman, he said.

This leaves around 9 million bpd, or about 10% of global supply, that can only pass through the Strait and will remain bottlenecked in the region until transit resumes, Liles said. At first glance, the 400 million emergency barrels would cover about 40 days of that lost supply, the analyst said.

But the reality is a lot more complicated, Liles said. “There’s only a limited amount of volume that can be released over a given period. It’s not as if 400 million barrels just appear immediately on the market,” he said.

Stockpiles not enough

The oil supply disrupted by the war is far larger than the stockpiles the IEA can release daily. As a consequence, the action will have limited impact on the trajectory of oil prices, analysts at Bernstein told clients in a Thursday note.

The U.S. will release 172 million barrels over a 120-day period. This implies 1.4 million barrels per day, which is just 15% of the supply lost due to the Hormuz closure. It takes 13 days for the barrels to hit the market from President Donald Trump’s authorization.

The IEA did not detail when the other members would start releasing barrels or in what quantities. It said each of its 32 member countries…

State Farm is making its case this week for a major rate hike for California homeowners in a hearing that could prove crucial to the insurer’s future.

The state’s largest property insurer needs approval to raise its rates on customers, and it’s applied for an emergency rate increase. The company argues it needs the additional funds to boost capital and avert an increasingly dire financial situation following the devastating Los Angeles wildfires.

State Farm General, which is the California arm of the national parent company, is presenting its case for the rate increases in front of an administrative judge in Oakland after the state insurance commissioner, Ricardo Lara, gave the insurer provisional approval for its emergency request.

The three-day hearing is scheduled to wrap up Thursday.

The situation for State Farm is precarious. An attorney for the California Department of Insurance compared it to the Titanic, saying the iceberg is in sight but there’s still time to turn the proverbial ship around.

“If we don’t, 3 million Californians are going into the water and there are not enough lifeboats,” that attorney, Nikki McKennedy, warned.

The historic wildfires that ripped through Los Angeles in January caused an estimated $250 billion to $275 billion in total damages and broader economic slowdown, according to AccuWeather, making it the costliest natural disaster on record.

State Farm General has about 20% of California’s homeowners market with nearly 3 million policies. The insurer has so far paid out over $2.75 billion on approximately 12,390 claims filed as a result of the L.A. wildfires and estimates direct losses tied to the fires to be approximately $7.6 billion, although reinsurance will lower its losses to around $612 million.

In February, the insurer requested that insurance regulators approve rate hikes on homeowners of 22%. It has since lowered its request to a 17% increase. State Farm is petitioning for an increase of 38% on renter dwelling policies, which is coverage for landlords, and 15% raise for renters.

Attorneys for State Farm General said on Tuesday that it has also agreed to seek $400 million in funds from its parent company if the rate increases are approved.

In February, S&P Global placed State Farm’s California subsidiary and its AA credit rating on a “CreditWatch Negative,” citing 5 years of weak underwriting performance and deteriorating capital capital scenarios.

Even before the devastating L.A. wildfires, insurers were facing big losses in the state due to the uptick in frequency and size of natural disasters over the past decade. Insurance Commissioner Lara, who is elected, not appointed, has been loath to approve significant rate hikes for both homeowners and auto insurance.

Meanwhile carriers pay out more in claims and expenses in the state than they collect in…