Here are the latest global economic developments on Wednesday around 14:00 GMT, the 33rd day of the conflict in the Middle East:
Wall Street opens higher, banking on de-escalation in the Middle East
There is a sense of optimism in the stock markets on Thursday, as they cling to the recent comments by U.S. President Donald Trump considering a U.S. withdrawal from the war in Iran within two to three weeks.
In early trading, the Dow Jones was up by 0.69%, the Nasdaq was up by 0.70%, and the S&P 500 index gained 0.56%.
Shortly before 12:00 GMT, major European indices rose by over 2%: London (+2.04%), Paris (+2.08%), Frankfurt (+2.82%), and Milan (+3.33%).
Fuel in France: government to implement energy-saving measures in case of supply issues
The French government will be required to implement energy-saving measures in the event of fuel supply difficulties, as announced by government spokesperson Maud Bregeon on Wednesday, without specifying these measures.
The SP95-E10 reached the symbolic €2 per liter mark in France on Wednesday, based on data from 7,289 service stations reported to the French government by AFP.
Since February 27, the day before the initial Israeli-American strikes on Iran that led to a spike in oil prices, the SP95-E10 has increased by 28 cents per liter in France, representing a 16.26% jump.
Fuel prices also surge at the pump in the UAE
With gasoline prices up by over 30% and diesel up by 72%, fuel prices at the pump are also on the rise in the United Arab Emirates, a significant hydrocarbon producer, a month after the conflict started in the Middle East.
Although lower compared to increases experienced by drivers in Europe, these prices stand at 3.39 dirhams (0.92 dollar) per liter of gasoline and 4.69 dirhams (1.28 dollar) per liter of diesel, as determined by the public commission responsible for setting them monthly.
Middle East conflict threatens financial stability, warns Bank of England
The economic shock from the Middle East conflict poses risks to the stability of the British financial system, cautioned the Bank of England (BoE) on Wednesday.
The conflict “constitutes a negative supply shock to the global economy, increasing the likelihood of inflationary pressures, higher interest rates, and weaker global growth,” according to the BoE’s report released Wednesday following the quarterly meeting of its Financial Policy Committee (FPC) held on March 27.
Germany: Middle East conflict hampers expected economic recovery
The energy shock resulting from the Middle East conflict will “impede” the recovery of the German economy, which will rely on additional public investments, warned major German economic institutions on Wednesday.
These institutes project a 0.6% growth in German gross domestic product (GDP) in 2026 and 0.9% in 2027. These forecasts are down by 0.6 and 0.5 percentage points respectively compared to those from the fall.
French manufacturing industry affected by Middle East conflict in March
French manufacturing production resumed its decline in March due to the impact of the Middle East conflict, which intensified pressures on prices and supply chains, according to the PMI index published by S&P Global on Wednesday.
“The results of the latest PMI survey highlight the immediate impact of the Middle East conflict on the French manufacturing sector,” noted Joe Hayes, chief economist at S&P Global. Data collected between March 12 and 24 “indicate a rapid tightening of supply conditions,” he added.
UK to host international meeting this week to secure the Strait of Hormuz
The UK will convene a meeting of around thirty countries this week to unite and ensure the security of maritime transport in the Strait of Hormuz, announced British Prime Minister Keir Starmer on Wednesday.
“The UK has now rallied 35 nations around our declaration of intent to stand together for maritime security in the Gulf. Later this week, Foreign Secretary Yvette Cooper will host a meeting of these countries for the first time,” stated the Labour leader during a press conference at Downing Street.
Dollar weakens as hopes of end to the war grow
The dollar weakened against most major currencies on Wednesday as hopes of an end to hostilities in the Middle East increased after statements by Donald Trump, which boosted stock markets, lowered oil prices, and consequently brought down the U.S. currency.
The decline in oil prices “helps soften the dollar,” highlighted Ipek Ozkardeskaya, an analyst at Swiss Quote, as it eases current inflationary concerns. This also suggests a less aggressive stance from the U.S. Federal Reserve in raising interest rates, easing tensions on the greenback.
