Oil prices had dropped back on Monday after Trump said the US would postpone strikes against Iranian energy infrastructure for five days, citing constructive talks between Washington and Tehran about resolving the hostilities.
By Tuesday, doubts about those discussions sent the price back up to more than $103.
UK businesses said the war in the Middle East has already had an “adverse impact on customer demand, input prices and supply chains” in March. They reported the biggest monthly rise in costs since 1992, according to the S&P Global Purchasing Managers’ Index, a key business survey.
Globally countries have attempted to ease the impact of higher energy prices and supply disruptions.
The US has temporarily waived sanctions on Russian, put in place after the Kremlin in 2022 launched its full-scale invasion of Ukraine. The US also eased sanctions on Iranian oil already at sea.
On Tuesday, China dialled back on planned fuel price hikes in a bid to “reduce the burden” on drivers, as energy costs surge due to the Iran war.
Stock markets have been mixed amid reports that the US was preparing to deploy soldiers to the Middle East.
In the US, all three major indexes slumped, with the S&P 500 ending down almost 0.4%.
In Europe, London’s FTSE 100 closed up 0.72%, Germany’s Dax ended marginally lower and in France, the Cac finished 0.23% ahead.
In Asia, where markets have been rocked in recent weeks due to the region’s dependence on the oil and gas that would normally pass through the strait, key indices posted gains.
Japan’s Nikkei 225 ended up 1.4%, while the Hang Seng in Hong Kong and South Korea’s Kospi both closed more than 2.7% higher.
