Here are the latest global economic developments on Wednesday around 11:30 PM GMT, on the 33rd day of the conflict in the Middle East.
Global Stock Markets Banking on a Quick End
Global stock markets benefited from a wave of optimism on Wednesday following President Donald Trump’s remarks anticipating the end of the conflict within “two to three weeks.”
European stock markets ended significantly higher, with the Paris Stock Exchange rising by 2.10%, Frankfurt by 2.73%, London by 1.85%, and Milan surging by 3.17%. On Wall Street, the Dow Jones increased by 0.48%, the Nasdaq by 1.16%, and the S&P 500 by 0.72%.
As the global benchmark for crude oil, the Brent barrel from the North Sea, for delivery in June, fell by 2.70% to $101.16, after dropping by over 5%. Its American counterpart, WTI, for delivery in May, declined by 1.24% to $100.12.
France: Mission of Business Mediator
The French Business Mediator is leading a mission on the transport sector to ensure that major clients do not worsen the financial situation of small businesses due to “egotism” in the context of the war.
Fuel: French Government Prefers Energy Saving Measures
The French government will consider implementing energy-saving measures in case of fuel supply difficulties, as indicated by spokeswoman Maud Bregeon, without further details.
USA: Strategic Oil Reserve Decrease
Crude oil was taken from the United States’ strategic reserve last week for the first time since the start of the war, according to data released by the Energy Information Administration (EIA) on Wednesday, while commercial stocks continue to rise.
The strategic stocks are closely monitored due to supply disruptions linked to the conflict. The EIA reported a loss of about 300,000 barrels from the “Strategic Petroleum Reserve” during the seven-day period ending on March 27.
War Threatens Financial Stability, Warns Bank of England
The economic shock caused by the war poses risks to the stability of the British financial system, warns the Bank of England (BoE).
The conflict “constitutes a negative supply shock for the global economy and increases the likelihood of inflationary pressures, higher interest rates, and slower growth worldwide,” stated the BoE in a document published on Wednesday.
World Bank Expresses Concern
The World Bank’s Managing Director, Paschal Donohoe, expressed being “very concerned” about the impact on the global economy, particularly for countries already facing challenges from multiple global crises.
“We are very concerned about the repercussions on inflation, jobs, and food security, which is why we are preparing to provide assistance to countries that request it,” he told AFP.
Germany: War Hampers Expected Economic Recovery
The energy shock from the conflict will “dampen” the recovery of the German economy, which will depend on additional public investments, warned Germany’s leading economic institutes.
They predict that Germany’s Gross Domestic Product (GDP) will grow by 0.6% in 2026 and 0.9% in 2027, representing a decrease of 0.6 and 0.5 percentage points respectively compared to the autumn forecasts.
UK: International Meeting to Secure the Strait of Hormuz
“The UK has now gathered 35 nations around our declaration of intent to stand together for maritime security in the Gulf,” announced British Prime Minister Keir Starmer, announcing the meeting “this week.”
This virtual meeting on Thursday will bring together representatives from about thirty countries ready to mobilize to restore and ensure maritime security in the Strait of Hormuz once hostilities cease.
