Economists fear Donald Trump is pushing the world into recession with no end in sight to the Middle East conflict.
Global stocks mostly retreated and oil prices rose on Monday after Trump warned Tehran that “the clock is ticking” as negotiations between the United States and Iran on a permanent end to the war stall. U.S. futures fell and markets in Japan and South Korea retreated from their records.
And around 80 countries have already imposed emergency fuel rationing, as oil prices threaten to surpass $180 a barrel.
The closure of the Strait of Hormuz has blocked shipping and caused shortages, leading to fears of a further rise in energy prices in the coming weeks, the Financial Times reports.
While JPMorgan estimates that oil inventories in developed economies could approach “operational stress levels” by June.
“[If the Iran war] does not end in the next few weeks and we do not have the reopening of the Strait of Hormuz, I fear that a global recession could be on the table,” said EU Transport Commissioner Apostolos Tzitzikostas.
