Middle East war: global economic fallout

A picture taken on March 9, 2026 shows a general view of the Bizkaia Bay Gas (BBG) regasification plant in the Spanish Basque city of Zierbena. [AFP]

Here are the latest economic events in the Middle East war on Wednesday:

Oil prices resurge

Oil prices rose again after stabilising on Tuesday, with global benchmark Brent up 1.8 percent to over $85 a barrel and US contract WTI up more than two percent, after prices earlier reached highs near $120.

Oil and gas prices had tumbled Tuesday after US President Donald Trump said: "I think the war is very complete, pretty much."

 G7 eyes oil reserves

Energy ministers of the G7 said they "stand ready" to take "all necessary measures" in coordination with the International Energy Agency (IEA) to tackle the rise in crude oil prices due to the Middle East war.

The IEA has proposed its largest ever release of oil reserves to counter soaring crude prices driven by the war, the Wall Street Journal reported on Tuesday.

France's Finance Minister Roland Lescure said G7 heads of state would discuss reserves in a meeting at 1400 GMT Wednesday.

World stocks mixed

European stock markets opened lower, with Frankfurt losing more than one percent following gains the previous day as uncertainty over the war persisted.

Asian stock markets rallied, with Seoul up more than five percent and Tokyo ending with a gain of 2.9 percent. US stocks had spent much of Tuesday in positive territory but finished mostly lower.

 Container ship hit

Unknown projectiles hit two cargo ships off the coast of the United Arab Emirates, British maritime security agency UKMTO said, as Iran pressed attacks on the Gulf and the nearby Strait of Hormuz.

 Fuel queues

Tanker drivers in Pakistan said they were facing long waits at depots due to a shortage of fuel, as the government played down fears of another rise in prices over the war.

Dozens of tankers were seen parked at the side of the road on Tuesday at depots near Lahore, the capital of Punjab, the country's most populous province.

Drones target oil field

Saudi Arabia's defence ministry said on X Wednesday that it intercepted two drones heading towards the Shaybah oil field in the southeast of the country.

In later posts it reported a further five interceptions of drones heading towards the oil field.

ECB inflation vow

European Central Bank chief Christine Lagarde said that "everything necessary" will be done to keep inflation in check during the war.

"We will do everything necessary to keep inflation under control and ensure that the French and the Europeans do not experience inflation increases like those we saw in 2022 and 2023" partly caused by Russia's invasion of Ukraine, Lagarde told French broadcasters.

Hormuz confusion

The United States energy secretary said in a video on X that the US Navy had escorted an oil tanker through the Strait of Hormuz -- but the post was deleted within minutes.

The White House subsequently stated that the US Navy had not escorted any tankers through the strategic Gulf passage.

Iran's Revolutionary Guards said no US Navy vessel has "dared" to approach the strait, which they virtually closed in retaliation to the US-Israeli strikes that killed their supreme leader.

UAE refinery

The region's biggest single-site oil refinery, at Ruwais in the United Arab Emirates, was closed as a precaution after a drone attack on the industrial complex that houses it caused a fire, a source familiar with the situation told AFP.

A driver working at the complex, who asked not to be named, told AFP they saw "bursts of fire rising from the complex, with loud sounds like explosions".

 Egypt hikes fuel prices

Egypt raised domestic fuel prices by up to 30 percent, blaming "exceptional" global energy pressures caused by the war, which has disrupted oil supplies and shipping routes.

The increases, announced by the petroleum ministry, apply to gasoline, diesel and natural gas used in vehicles.

India tightens gas controls

India ordered tighter controls over natural and cooking gas following import disruptions, with restaurants warning the war could spark widespread closures.