Here are the latest global economic developments on Wednesday around 5:09 GMT, the 34th day of the Middle East conflict.
Market Turns Red Asian markets, which had seen some optimism in the morning and the day before, took a dip after hopes of a quick resolution to the conflict were dampened by Donald Trump’s speech, promising to “hit Iran very hard” in the coming weeks.
The Nikkei index in Tokyo dropped 2.37% to 52,463.55 points around 04:45 GMT, while the Kospi in Seoul fell by 4.1%. Indices also declined in Sydney (-1.15%), Taipei (-1.56%), and Hong Kong (-1.09%).
Brent Oil Prices Cross $107 Oil prices, which had calmed down when the U.S. president mentioned a withdrawal from the war “within two to three weeks” on Tuesday, surged again, with Brent climbing back above $107.
Around 04:45 GMT, the Brent barrel from the North Sea, the global benchmark for crude, rose by 6.51% to $107.75. Its American counterpart, the WTI, also increased by 5.27% to $105.40.
UK: International Meeting to Secure the Strait of Hormuz “The UK has now gathered 35 nations around our declaration of intention to stand together for maritime security in the Gulf,” said British Prime Minister Keir Starmer, announcing a meeting “this week”.
The virtual meeting on Thursday will bring together representatives from around thirty countries to work on restoring and securing maritime transport in the Strait of Hormuz once hostilities end. Australian Defense Minister Richard Marles confirmed participation from Australia.
Fuel: French Government to Implement Energy-Saving Measures The French government may take energy-saving measures in case of fuel supply difficulties, said spokeswoman Maud Bregeon, without providing further details.
On Wednesday, SP95-E10 reached the symbolic threshold of €2 per liter, with about 10% of over 9,500 service stations in France running out of at least one of the main fuels.
USA: Strategic Petroleum Reserve Declines Black gold was taken from the U.S. strategic reserve last week for the first time since the war began, according to figures released by the U.S. Energy Information Administration on Wednesday, while commercial stocks continued to rise.
The strategic reserves have been closely monitored due to supply disruptions related to the conflict. The SPR (“strategic petroleum reserve”) lost around 300,000 barrels during the seven-day period ending on March 27.
War Threatens Financial Stability, Warns Bank of England The economic shock from the war poses risks to the stability of the British financial system, the Bank of England (BoE) warns.
The conflict “constitutes a negative supply shock to the global economy, and increases the likelihood of inflationary pressures, higher interest rates, and slower growth worldwide,” stated the BoE in a document published on Wednesday.
World Bank Expresses Concern World Bank Managing Director Paschal Donohoe expressed “serious concern” about the impact on the global economy, given that several countries were already in a difficult situation due to ongoing global crises.
“We are very concerned about the consequences this will have on inflation, jobs, and food security, which is why we are preparing to provide assistance to countries that request it,” he told AFP.
Germany: War Hinders Expected Economic Recovery The energy shock caused by the conflict will “slow down” the recovery of the German economy, which will depend on additional public investments, warned leading German economic institutes.
According to them, Germany’s Gross Domestic Product (GDP) is expected to grow by 0.6% in 2026 and 0.9% in 2027, representing a decrease of 0.6 and 0.5 percentage points respectively from the autumn projections.
Published on April 2 at 07:30, AFP.
