Illustration of the Strait of Hormuz on a globe under a magnifying glass.
Photo | Future Publishing | Getty Images
Hello, my name is Dylan Butts from Singapore. Welcome to another edition of CNBC’s Daily Open.
President Donald Trump addressed the economic fallout from the Iran war at a Cabinet meeting on Thursday, saying soaring oil prices and the stock market slump were not as severe as expected, and predicted that both would soon be reversed.
Many global market participants do not seem to share this optimistic view. But it begs the question — how bad was he expecting?
What you need to know today
U.S. stock indexes fell again on Thursday, weighed down by rising oil prices, as traders tracked various other developments related to the Iran war.
This came after President Trump extended a moratorium on potential U.S. attacks on Iranian energy facilities until April 6, warning Iranian negotiators to “get serious now, before it’s too late, because once that happens, there’s no going back and it’s not a very good situation.”
The president also branded Iranian negotiators “very foreign” and “bizarre” and claimed they were “begging” the US for a deal to end the now four-week war.
President Trump had previously warned that the United States would destroy Iran’s energy facilities unless it opened the critical Strait of Hormuz, and the president has suggested that is starting to happen.
He said on Thursday that Iran had allowed 10 oil tankers to pass through the strait this week as a “gift” and a sign of good faith to the United States. The Iranian government has not officially commented on the matter.
Meanwhile, Iranian state media reports that Iran is preparing a bill to impose tolls on ships passing through the Strait of Hormuz.
The development comes after the Israeli military announced that Iranian naval commander Alireza Tansiri had been killed in the attack and accused him of being responsible for efforts to close the strategic waterway.
Despite signs that shipping traffic through the strait is being restricted, markets remain nervous about what a prolonged conflict will mean for the global economy.
The G7 European nations warned ahead of a major summit on Thursday that the war was having a devastating impact on the global economy.
Concerns are beginning to emerge at the consumer level as well. More retailers are warning of price hikes if the dispute drags on for months, as rising transportation and energy costs impact supply chains.
— Dylan Butts
