France has bolstered its naval forces in the Persian Gulf to secure navigation in one of the world’s most critical shipping routes, which handles about 20% of global oil and gas supplies. The deployment includes two minehunters, two frigates, and a maritime patrol aircraft, as announced by President Emmanuel Macron on Friday. The move aims to ensure the safety of traffic in the Strait of Hormuz amid ongoing regional tensions.

"These assets are ready to contribute, alongside our partners, to the full resumption of navigation and to ensure the safety of traffic in the Strait of Hormuz," Macron said. The interim peace deal between the US and Iran "constitutes an important step forward for regional stability," he added. The decision comes after months of tensions between Washington and European allies, with Europe previously wary of involvement in efforts to reopen Hormuz.

European involvement carries significant economic implications. A reopened Hormuz is expected to lower war-risk insurance premiums and stabilize tanker traffic, reducing market volatility and supporting predictable global energy flows. Consumer prices in the Eurozone slowed to 2.8% in June 2026, down from 3.2% in May, marking the lowest rate since February before the Iran war disrupted energy supplies. Brent crude futures were up 0.19% at $71.94 a barrel, while US West Texas Intermediate (WTI) edged 0.13% higher to $68.78.

In a policy shift, Macron and UK Prime Minister Keir Starmer issued a joint statement reaffirming their commitment to regional stability. "The Strait of Hormuz is a vital artery for the global economy," they said. "Restoring safe transit for ships of all nations through the Strait is a matter of global concern." France and the UK plan to coordinate a coalition of over 40 nations to help reopen the strait once the conflict ends.

The policy change followed talks with Oman, which borders the Hormuz shipping routes along with Iran. Muscat agreed to work with France and the UK "to ensure that its sovereign territorial waters are safe for navigation." France’s aircraft carrier Charles de Gaulle will return to its home port in Toulon after being placed on standby in the Gulf since mid-May.

Iran warned France and the UK against sending military vessels to the waterway. "As a responsible power and guarantor of the Strait’s security, Iran warns against any military movement in this waterway," said Iranian Deputy Foreign Minister Kazem Qaribabadi. Tehran has emphasized its sovereignty over the corridor and stated that the strategic waterway will never return to its pre-war conditions.

President Donald Trump has threatened to impose 100% tariffs on French wines unless France abolishes its 3% digital tax on American tech companies. Trump demanded that French President Emmanuel Macron eliminate the levy, warning that failure to do so would leave him no choice but to impose significant tariffs on all champagnes and wines imported from France. The warning was issued in an interview with the New York Post published on Monday.

This is not the first instance of such threats. Earlier this year, Trump warned of imposing 200% tariffs on French wines and champagnes after Macron reportedly declined an invitation to join his Gaza ‘Board of Peace' initiative. The latest threat precedes the G7 summit in the French lakeside resort of Évian-les-Bains, where leaders of the world’s seven leading democracies will convene to discuss international trade, security, and economic issues.

France's Digital Services Tax

France’s digital services tax imposes a 3% levy on local revenue generated by major US tech companies, often referred to as the GAFAM tax. The tax primarily affects Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Apple Inc., raising about $700 million last year. In October, lawmakers voted to double the tax to 6% and focus it more narrowly on the largest global firms, though the proposal was later vetoed amid concerns it could trigger US retaliation.

G7 Summit Agenda

France assumed the G7 presidency in 2026, succeeding Canada. The summit agenda is expected to cover several critical global issues. Leaders will reaffirm support for Ukraine, while President Volodymyr Zelenskyy pushes for direct talks with Russian President Vladimir Putin. The summit also follows a framework agreement between the US and Iran to end their conflict, with discussions focusing on the reopening of the Strait of Hormuz and Iran's nuclear and ballistic missile programs.

Discussions on AI and global economic imbalances are also scheduled, with France planning to highlight concerns regarding China's overproduction, US overconsumption, and Europe underinvestment. AI leaders, including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei, are expected to participate in talks on the opportunities and risks of artificial intelligence. Additionally, G7 leaders are expected to address the growing debt burden facing emerging and developing economies.