Donald Trump has threatened to intensify the war against Iran, saying the U.S. could strike the country “extremely hard.” At the same time, he suggested the conflict could end within two to three weeks, while declining to commit to reopening the Strait of Hormuz.
Markets reacted swiftly. Asian equities, which had been trading higher ahead of Trump’s remarks, reversed course and fell 1.5%. U.S. futures are down 1%. Oil markets moved in the opposite direction, with Brent crude rising 4% to around $105 per barrel.
Geopolitical tensions are spilling into energy markets globally. European diesel futures have surged to $200 per barrel, fueling concerns that energy rationing — once seen as a regional risk — may become a broader global issue.
On the policy front, the European Union pushed back against U.S. pressure, reiterating that its digital regulation framework is not open to negotiation.
Meanwhile, energy supply dynamics remain volatile. According to Reuters, Russian gas exports to Western Europe have increased again, with flows through the TurkStream pipeline up 22% and LNG shipments rising 17% in March.
In Asia, the economic backdrop appears more resilient. A Nikkei survey of leading economists suggests China’s growth likely accelerated in the first quarter of 2026, offering a partial counterbalance to rising global uncertainty.