
International financial markets have been hit by strong fluctuations, while the war with Iran continues to keep global economic uncertainty high.
Investors initially reacted positively to reports that Donald Trump was willing to end the war even if the Strait of Hormuz remained closed. But the optimism was short-lived. Vague statements coming from the White House brought fear back to the markets.
The US president has reportedly abandoned an immediate operation to reopen the Strait of Hormuz, saying it would prolong the conflict beyond the four to six weeks he had initially envisioned. The focus, officials say, will be on hitting Iran's missile and naval capabilities before increasing diplomatic pressure.
At the same time, Trump has threatened to strike Kharg Island, the main hub of Iranian oil exports, as well as power plants and water plants, if a deal is not reached.
As a result, most Asian stock markets closed the day down, while the price of oil, although fluctuating, remains above $100 per barrel.
Analysts warn that the key question now is not how high oil will go, but how long high energy costs will hit economic growth and consumption around the world.