Global economic impact of the Middle East conflict

The Middle East conflict continues to have significant global economic repercussions, even as some tensions ease. Following Donald Trump's decision to postpone his ultimatum against Iran and Tehran's willingness to negotiate, oil prices saw a sharp decline. West Texas Intermediate WTI crude for May delivery dropped by 14.53% to $96.54, while Brent crude for June delivery fell by 13.13% to $94.92. European gas prices also decreased by 20% at market open, leading to a weakening dollar against major currencies. Asian stock markets reacted positively, with Tokyo's Nikkei index gaining 5.33% and Seoul's Kospi index surging by nearly 7%. European markets are also expected to open higher. Despite these positive shifts, the International Air Transport Association IATA warned that it would take several months for jet fuel supplies and hydrocarbon prices to normalize, even with the potential reopening of the Strait of Hormuz. In France, fuel prices could drop by 5 to 10 cents very quickly, according to Olivier Gantois, president of the French Union of Petroleum Industries Ufip. US President Donald Trump stated that the United States would help alleviate maritime traffic congestion in the Strait of Hormuz, a crucial waterway for about 20% of global crude oil and liquefied natural gas. Pakistan has mitigated the impact of the conflict on its economy through the growth of solar energy, saving over $12 billion in gas and oil imports by February 2026. However, the French building federation