Global economic impact of the Middle East war as of Saturday morning

Here are the latest global economic developments as of Saturday around 05:00 a.m. GMT, as the Middle East war has lasted for three weeks.

Strait of Hormuz: Iran says it is ready to assist Japanese ships

Iran is willing to help Japanese ships pass through the Strait of Hormuz, Iranian Foreign Minister Abbas Araghchi said in an interview published Saturday by Kyodo News. Japan depends on crude oil imports from the Middle East, most of which pass through the strait, a crucial trade route for the world’s fuel supply.

In practice, Iran has restricted access to the strait in response to strikes carried out by Israel and the United States, leaving countries dependent on this maritime route scrambling to find alternatives and draw on their reserves.

“We have not closed the strait. It is open,” Araghchi said in a phone interview with Kyodo News on Friday. According to him, countries attacking Iran face restrictions, while others are being offered assistance. Iran is prepared to ensure safe crossings for Japan, he added.

On Monday, Tokyo announced it had begun drawing on its strategic oil reserves, which are among the largest in the world, equivalent to 254 days of domestic consumption.

European and Wall Street markets fall, oil rises

European markets again ended sharply lower Friday, dragged down by the ongoing rise in energy prices linked to uncertainty about the duration and consequences of the conflict in the Middle East.

Frankfurt closed down 2.01 percent, Milan 1.97 percent, Paris 1.82 percent and London 1.45 percent.

On Wall Street, the Dow Jones dropped 0.97 percent, the Nasdaq index 2.01 percent and the broader S&P 500 index 1.51 percent.

“Investors are, unsurprisingly, a bit nervous about what could happen” in the coming days on the military front, Angelo Kourkafas of Edward Jones told AFP.

Oil prices finished higher but stayed below the $120 per barrel threshold, which has been approached several times since the conflict began. Brent crude from the North Sea rose 3.26 percent to $112.19. Its U.S. equivalent, West Texas Intermediate (WTI), climbed 2.27 percent to $98.32.

Iran says it has no oil surplus

The United States on Friday authorized the sale and delivery of Iranian oil and related products that have been on ships since at least March 19, and until April 19, in hopes of curbing the surge in energy prices caused by the war.

Earlier in the day, Iran dismissed the measure as useless after initial indications from U.S. Treasury Secretary Scott Bessent. “Currently, Iran actually has no surplus crude at sea or to supply international markets, and the American Treasury Secretary’s comments are solely aimed at giving buyers hope,” Iranian Oil Ministry spokesman Saman Ghoddoosi posted on X.

Commodities: Gold and copper plummet

The prices of gold and silver plunged this week, as several major central banks fueled fears of an inflationary surge linked to the conflict, suggesting possible interest rate hikes. This prospect favors bonds and the dollar, competing safe havens to precious metals.

Gold lost nearly 9 percent in a week, and silver more than 14 percent.

Increase in airfares inevitable (IATA)

An increase in plane ticket prices is “inevitable” given the spike in hydrocarbon prices, according to the director general of IATA, the leading global airline association. The price of jet fuel has doubled since the Israeli-American attack on Iran on Feb. 28, Willie Walsh said.

US: Fed official worries about inflation risk

Donald Trump has lost an advocate of interest rate cuts within the Federal Reserve: a governor of the U.S. central bank said he now fears persistent inflation because of the war.

Christopher Waller told CNBC that he was still considering, “two weeks ago,” voting for monetary easing. But since then, “the Strait of Hormuz has remained restricted, it seems the conflict will drag on, and oil prices will remain elevated for longer. So that suggests inflation is more of a concern than I thought,” he said.

Spain: 5-billion-euro anti-crisis aid package

Spanish Socialist Prime Minister Pedro Sánchez announced a series of 80 measures totaling 5 billion euros to combat the effects of the conflict, notably promising a “drastic reduction” in energy taxes.

Among the measures announced after an extraordinary cabinet meeting, which will be applied from Saturday, is a reduction in VAT on gas and fuels, which should allow for a drop in pump prices of up to 30 cents per liter.