Middle East war: global economic fallout

Oil prices drop
Oil prices fell on Tuesday after Iranian President Masoud Pezeshkian said on Tuesday his country had the "necessary will" to end the ongoing war with Israel and the United States, but was seeking guarantees that the conflict would not be repeated.

Crude was still trading well above $100 a barrel, however.
Trump threatens Kharg hub
Trump threatened to destroy Iran's Kharg Island oil export hub if a deal to end the war was not reached soon and the Strait of Hormuz did not "immediately" open.

The island, located around 30 kilometres (19 miles) off the Iranian mainland, handles roughly 90 percent of Iran's crude exports, according to a JP Morgan note released early March.
Desalination plant hit
Strikes have knocked out a desalination plant on Qeshm Island in the Strait of Hormuz, Iranian media reported, without saying when the attack took place.

"One of the desalination plants on Qeshm Island was targeted... and is now completely out of service, as it is not possible to repair it in the short term," the ISNA news agency reported, quoting health ministry official Mohsen Farhadi.
China ships transit
China's foreign ministry thanked "the relevant parties" on Tuesday for helping three Chinese ships to transit out of the Strait of Hormuz.

Two container vessels belonging to shipping giant Cosco passed through the strait on Monday, tracking data showed. Beijing gave no detail on the third ship.
Eurozone inflation
Eurozone inflation leapt to 2.5 percent in March, the highest level since January 2025, owing to surging energy prices caused by the Middle East war.
Asia war woes
Asia faces the gravest fallout from the war and is confronting a major energy crisis, the head of global maritime analytics firm Kpler told AFP on Tuesday.

Jean Maynier said the continent did not have enough energy resources to cover the gap, adding: "It will not be enough in China, it will not be enough to cover in big countries like the Philippines or Indonesia. So it's a real energy crisis."
Indonesia rations fuel, rebuffs price hikes
Indonesia on Tuesday announced fuel rationing and mandated work from home for civil servants as it seeks to conserve energy stocks amid global price hikes due to the Middle East war.

It earlier said it would not increase fuel prices despite rising budget pressures from the war.
Kuwait tanker blaze
An Iranian attack sparked a fire on a Kuwaiti oil tanker at Dubai Port, state media reported on Tuesday. There were no injuries, according to the report, and Dubai authorities later said firefighters had extinguished the blaze.

Maritime intelligence agency Vanguard and ship tracker MarineTraffic identified the ship as the Al Salmi, a 332-metre (1090-feet) long Kuwait-flagged crude tanker.
Ethiopia rations fuel
Ethiopia will prioritise vehicles transporting essential goods and those in the public transport sector at fuel stations as the country grapples with shortages caused by the Middle East war, authorities said Tuesday.
Sri Lanka hikes electricity
Sri Lanka announced a nearly 40 percent increase in electricity prices from Wednesday as it battles an energy shortage caused by the war in the Middle East.

Sri Lanka has raised fuel prices three times this month, increasing them by more than a third, and has imposed a four-day working week in a bid to save energy.
EU says 'necessary' to reduce fuel demand
The EU urged member states Tuesday to try to push down domestic demand for fuel and prepare to secure oil supplies, warning of potentially prolonged effects of the Middle East war on energy prices.

The European Commission has repeatedly said supplies are not an issue at this stage for the 27-nation bloc, but high prices are a matter of concern.
Lithuania chops train ticket prices
Lithuania announced it would slash the price of domestic train tickets by half to provide travellers some respite from soaring fuel prices triggered by the war in the Middle East.

The 50 percent reduction will apply from April 1 to May 31 on all domestic routes and for all classes, public rail operator LTG announced in a joint statement with the transportation ministry.

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