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France: Finance Minister Warns of a 'New Oil Shock'

Published March 24, 2026, 20:12
France: Finance Minister Warns of a 'New Oil Shock'

French Finance Minister Roland Lescure warned of a 'new oil shock' caused by the war in the Middle East, which risks negatively impacting France's economic growth. He noted that approximately 15-20% of global oil and 20% of liquefied natural gas are no longer reaching markets, leading to a shortage of around 11 million barrels per day. Lescure stressed that the crisis will not be temporary, as initially estimated, and that a shock of $10 per barrel could reduce growth by 0.1% and increase inflation by 0.3%. If oil remains at $100 per barrel, the impact on growth could be negative by 0.3-0.4% and on inflation by one percentage point. The minister referred to INSEE forecasts, according to which France's economic growth is expected to slow to 0.2% in the first and second quarters of the year. A meeting of an 'alert committee' is scheduled for April 21 to assess the situation and consider possible revisions to the state budget.