President Trump Proposes Peace Plan to End Conflict in Iran:

On March 24, US President Donald Trump addressed a peace proposal to Iran, expressing optimism about the possibility of ending the month-long conflict. This initiative came as Iran announced permitting the passage of “non-hostile” tankers through the strategic strait of Hormuz. Speaking from the Oval Office, President Trump stated that the United States was negotiating with Iran, although the country had not confirmed any formal discussions.

Oil Prices Drop by Over 6% Following American-Iranian Peace Proposal Easing Supply Concerns: Global oil prices saw a significant decline of over 6% on the morning of March 25 after US President Donald Trump addressed a peace proposal to Iran. This diplomatic initiative, coupled with news of Iran easing control over the strait of Hormuz, helped reassure markets, sparking hope for an end to the conflict after more than a month and a resumption of energy flows in the Middle East.

Global Gold Prices Increase by Over 2% Amid Easing Middle East Tensions: Global gold prices unexpectedly rose by over 2% to surpass $4,500 per ounce during the morning session on March 25. The weakening US dollar and the drop in oil prices helped alleviate inflationary pressures and concerns about high-interest rates, with the market receiving positive signals regarding peace plans in the Middle East.

Conflict in the Middle East Begins to Weigh on Major Economies: According to surveys of businesses published on March 24, the conflict in the Middle East is starting to negatively impact major global economies. Soaring energy prices and rising instability are slowing economic activity and fueling inflation expectations. Preliminary survey results from purchasing managers in the US, Europe, and Japan provide the most complete picture to date of the economic impact of this conflict, which has been ongoing for over four weeks.

AIE Ready to Release More Oil Reserves Following Japan’s Proposal:

On March 25, the International Energy Agency (AIE) General Director Fatih Birol announced that the agency was “ready to deploy” additional crude oil reserves “if necessary.” This statement followed a meeting with Japanese Prime Minister Sanae Takaichi in Tokyo. During the meeting, Ms. Takaichi requested the AIE to “prepare a plan for further release of reserves in case of prolonged conflict in the Middle East.”

The Philippines Receives First Russian Oil Shipment in 5 Years: The Philippines received its first shipment of Russian crude oil in five years as it seeks alternative sources of supply amid concerns about disruptions in global energy supplies. According to sources citing analysis firms such as LSEG, Kpler, and OilX, a vessel carrying around 100,000 tons of ESPO Blend crude oil from the port of Kozmino (Russia) was shipped to the Philippine Petron oil refinery in Bataan province.

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