Middle East war: global economic fallout

Oil prices surged around three percent as several countries pushed back against US President Donald Trump's demand that they help secure the key Strait of Hormuz, while Iran staged new attacks on crude-producing neighbours.

They recovered the previous day's sharp losses that came after the head of the International Energy Agency (IEA) said more stockpiles could be tapped if needed.

Equities generally extended Monday's gains as tech firms rallied after Nvidia said it expected to make at least $1 trillion in revenue through the end of 2027.

- Iraq asks Iran for tanker passage -

Iraq is in contact with Iran to try to arrange passage for some of its oil tankers through the Strait of Hormuz, the country's oil minister told local media.

Iraq is a founding member of the OPEC cartel and crude oil sales make up 90 percent of its budget revenues. Before the outbreak of war on February 28, Iraq mainly shipped its oil -- roughly 3.5 million barrels per day -- from the southern Basra fields via the Strait of Hormuz.

- German investment morale plummets -

Investor morale in Germany, Europe's largest economy, has plunged to its lowest level in almost a year as the Middle East war rattles markets, according to a survey by the ZEW economic research institute.

Sentiment among investors on the future of the German economy fell 58.8 points in the past month, the survey said, leaving it at its lowest level since Trump first imposed sweeping global tariffs last April.

- New Fujairah attack -

A new drone strike hit the Fujairah oil complex on the east coast of the United Arab Emirates on Tuesday causing a fire but no injuries, authorities said.

"Civil defence teams from the emirate intervened immediately on site and are continuing their efforts to bring the situation under control" authorities said in a statement on X.

The facility, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports, was also hit on Monday. A source told AFP that oil was no longer being loaded into storage tanks.

- Drone attack targets Iraqi oil field -

Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.

Majnoon oil field was "targeted by two drones, one hit a telecommunication tower," but there was no damage, ministry spokesperson Saheb Bazoun said.

A security official said the second drone targeted the offices of an American firm operating at the site.

- Australia hikes rates -

Australia's central bank hiked its key interest rate, pointing to "sharply higher fuel prices" driven by the Middle East war. 

The Reserve Bank of Australia became one of the first major central banks to lift rates in response to the turmoil, raising its key cash rate 25 basis points to 4.10 percent.

- China noting possible Trump delay -

China said it had "noted" clarifications from the United States about the reasons for a possible delay to President Donald Trump's planned trip.

Trump expected to visit Beijing in March, but said on Monday he had asked Beijing to delay his summit with Chinese leader Xi Jinping by around a month due to the Middle East war.

- Philippines seek relief -

Hundreds of Philippine tricycle drivers lined up in Manila for cash handouts they hope will provide temporary relief from surging oil prices.

Since the conflict started, the Philippines has implemented a four-day work week for civil servants, seen ferry schedules reduced in some areas, and begun eyeing the possibility of Russian oil imports. Officials have unveiled price hikes for a range of local transportation.

burs/cw/tw