Below are the latest global economic developments from Wednesday morning. The war in the Middle East is now entering its 26th day.
Oil prices are falling again
Oil prices fell on Wednesday. The price of Brent oil fell below $100 per barrel. This came after Iran announced it would reopen the Strait of Hormuz to ships deemed “non-hostile.” An American peace plan was also sent to Tehran.
At around 7:40 a.m. GMT, the price of Brent North Sea oil, the global oil market benchmark, fell 4.95 percent to $99.27 a barrel. The American reference variety West Texas Intermediate (WTI) lost 4.13 percent and was quoted at $88.54.
US President Donald Trump expressed optimism on Tuesday about the chances of reaching an agreement with Iran. “We are in negotiations,” he said. Iran gave the United States “a very large gift” related to hydrocarbons “that is worth a lot of money,” Trump said, without giving further details.
Multiple media outlets, including The New York Times and Israel’s Channel 12, report that the Trump administration has sent a 15-point peace plan to Iran through Pakistan. Pakistan enjoys good relations with both sides. One of the points calls for the Strait of Hormuz to remain open to shipping.
European and Asian stock markets appear calmer
The European and Asian stock markets are calming down. At the opening, Paris increased by 1.20 percent, Frankfurt by 1.43 percent and London by 0.63 percent.
The Nikkei index in Tokyo closed with an increase of 2.9 percent at 53,749.62 points. The Shanghai Composite Index rose 1.3 percent to 3,931.84 points.
The Hang Seng in Hong Kong was still in the black at around 7:30 a.m. GMT (+0.5 percent to 25,199.45 points). The stock exchanges in Sydney, Singapore, Mumbai, Bangkok, Jakarta, Wellington and Taipei developed similarly.
On the foreign exchange market, the US dollar lost against the Japanese currency. One US dollar traded for 159.00 yen.
Gold, on the other hand, gained 2.79 percent and reached a price of 4,562.59 US dollars per ounce (31.1 g).
Oil: IEA ready to release further reserves “if necessary” following request from Japan
International Energy Agency (IEA) director Fatih Birol said on Wednesday he was “ready” to initiate further release of oil reserves “if and when this becomes necessary”. This came on the 26th day of the war in the Middle East, which is driving up hydrocarbon prices.
These comments came in response to a call from Japanese Prime Minister Sanae Takaichi. At their meeting in Tokyo, they called for “preparation” to “implement” such a coordinated action.
Iran has declared that “non-hostile ships” will be allowed to pass through the Strait of Hormuz. The prerequisite is compliance with safety regulations, according to a statement sent to the International Maritime Organization (IMO).
The statement said: “Non-hostile vessels (…) may – on condition that they do not participate in or support acts of aggression against Iran and fully comply with applicable security regulations – be granted safe passage through the Strait of Hormuz in coordination with the relevant authorities.”
The war in the Middle East is causing a “new oil shock” that could weigh on France’s economic growth. French Economy Minister Roland Lescure said this in the National Assembly on Tuesday.
“It’s an oil shock. We’ve had about 10 of them in the last 50 years,” Lescure said. “The assumption of a temporary crisis, the economic consequences of which would disappear with the end of the bombing, is unfortunately no longer relevant,” he told the Finance Committee.
The economy is currently hit by “global turmoil.” French growth is expected to be weaker than expected in the first and second quarters due to inflation caused by rising energy prices. Nevertheless, the economy will “hold firm” for the time being, the French statistics office Insee said on Tuesday.
After growth of 0.5 percent in the third quarter of 2025 and a slowdown to 0.2 percent in the fourth quarter, the institute is again forecasting an increase in gross domestic product (GDP) of 0.2 percent for the first and second quarters of 2026. This emerges from its economic report.
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