Middle East war: global economic fallout in World Economy News 26/03/2026 Here are the latest economic events in the Middle East war: – Oil tumbles on peace hopes – Oil prices tumbled around seven percent on Monday after US President Donald Trump said the United States and Iran were holding “very good and productive” talks and that he would postpone threatened strikes on Iranian energy infrastructure as a result. Oil prices had been higher earlier in the day after the United States and Israel warned at the weekend that the war against Iran, which has disrupted oil deliveries through the Strait of Hormuz, would continue for several more weeks. But following Trump’s comments on social media, West Texas Intermediate (WTI), the US crude benchmark, fell below $90 a barrel while North Sea Brent crude was just past $100, down steeply from recent highs but still well above where they were before the US and Israeli attack on Iran. -Bourses rebound on Trump comments European stock markets sharply rebounded Monday after US President Donald Trump called off strikes on Iranian energy assets to allow more time for talks on a “complete and total resolution of our hostilities in the Middle East”. Earlier in the session, European shares had tumbled and Asian markets closed lower as Trump and Iranian leaders traded threats over the Strait of Hormuz. London’s benchmark FTSE 100 index was up 0.6 percent, while Paris and Frankfurt were up by over one percent. – IEA chief issues warnings – International Energy Agency chief Fatih Birol warned on Monday that the global economy is under “major threat” from the energy crisis caused by the Middle East war, adding that “no country will be immune”. At least 40 energy assets across nine countries in the region were “severely” damaged due to the war, Birol added. – China limits fuel prices – China has limited the amount by which the country’s retail fuel costs can rise, the government announced Monday, as oil prices have surged due to the Middle East war. China’s state planner, the National Development and Reform Commission (NDRC), said it hiked the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric tonne respectively, starting from midnight. – Sweden to cut fuel taxes – Sweden’s government said Monday it was proposing to temporarily lower taxes on petrol and diesel to soften the blow of surging energy prices. If passed by parliament, the proposed tax cut would go into force on May 1 and last until the end of September, and as a first step be lowered to the EU’s minimum level. “All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden’s economy to the test,” Prime Minister Ulf Kristersson told a press conference. – Indonesia eyes cutting fuel use – Indonesia is eyeing up to 80 trillion rupiah ($4.7 billion) in savings to cushion its economy from the fallout of the war in the Middle East, including fuel-conserving measures such as one day of remote working per week for government and certain public sector workers. – Greece announces relief measures – Greek Prime Minister Kyriakos Mitsotakis on Monday said that the government had earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices. The subsidies are targeted at reducing the cost of diesel fuel, petrol and fertiliser. Part of the initiative is aimed at holding back price hikes in ferry