In a prime-time address, Trump said the United States would “hit” Iran hard over the next two to three weeks while asserting that core military objectives were nearing completion.

However, the absence of a defined endgame unsettled investors and raised concerns about prolonged disruption to global energy supplies.

South AfricaBenchmark crude prices jumped around 5%, climbing above $106 per barrel, while equity markets declined across major regions as traders reacted to continued uncertainty over the conflict and the closure of the Strait of Hormuz, a critical route for global oil shipments.

Trump reiterated that U.S. forces were “on track” to complete their objectives “very shortly,” and said Iran had been “essentially decimated,” while warning that further escalation remained possible if Tehran did not meet U.S. demands.

He also suggested potential strikes on key infrastructure, including energy facilities. Despite the aggressive rhetoric, diplomatic prospects remain limited. A senior Iranian source told Reuters that Tehran is seeking a guaranteed ceasefire before halting attacks and confirmed that no indirect talks on a temporary truce have taken place.

The ongoing conflict, which began after U.S.-Israeli strikes on Feb. 28, has disrupted global oil flows and heightened geopolitical risk across the Middle East. Iran’s effective blockade of Hormuz has constrained shipments that typically account for about one-fifth of global oil and gas trade, amplifying volatility in energy markets.

Market participants said Trump’s speech failed to reassure investors seeking clarity on how and when the conflict might end, with uncertainty over supply disruptions and military escalation continuing to drive price swings.

International financial institutions, including the International Monetary Fund, World Bank and International Energy Agency, have warned that the war is having significant and uneven global economic impacts, particularly on energy-importing countries.

Tokyo — Business sentiment among Japanese firms improved in the three months to March while corporate inflation expectations rose to record levels, a closely watched survey showed on Wednesday, strengthening the case for a near-term interest rate hike by the Bank of Japan, even as escalating fuel costs linked to the Iran conflict darken the economic outlook.

The central bank’s quarterly “tankan” survey indicated that large manufacturers’ sentiment index rose to +17 in March, slightly above market forecasts of +16 and up from +16 in December, marking its highest level since December 2021.

The improvement extended a fourth consecutive quarter of gains, suggesting that parts of Japan’s industrial sector have continued to recover despite mounting global uncertainties.

Sentiment among large non-manufacturers remained robust, with the index holding steady at +36, surpassing a median market forecast of +33. The strength in the services sector was supported by rising profits from price increases and a continued recovery in inbound tourism, according to the survey data.

A Bank of Japan official said resilient demand for artificial intelligence-related semiconductors and easing uncertainty over U.S. trade policy helped offset pressures from higher input costs and geopolitical tensions in the Middle East.

At the same time, the survey highlighted growing inflationary pressures within the corporate sector. Companies reported rising expectations for future price increases, reflecting the impact of higher fuel and raw material costs.

Analysts said this trend could provide additional justification for the central bank to move toward policy normalisation after years of ultra-loose monetary settings.Mari Iwashita, executive rates strategist at Nomura Securities, said the survey underscored mounting inflation risks driven by external shocks.

She noted that companies facing surging energy costs may increasingly pass those expenses on to consumers, reinforcing upward pressure on prices.The data comes at a critical juncture for the Bank of Japan, which is weighing whether to raise interest rates as early as this month.

Market participants have been closely monitoring the tankan survey as a key gauge of corporate sentiment and investment plans.Despite the relatively upbeat current conditions, the survey revealed growing caution among firms about the near-term outlook.

Both manufacturers and non-manufacturers expect business conditions to deteriorate over the next three months, reflecting concerns about the economic fallout from the Iran conflict and its impact on energy markets.

The ongoing conflict has driven up global fuel costs, increasing operational expenses for Japanese companies that rely heavily on imported energy. The resulting squeeze on margins is expected to weigh on profitability, particularly for industries with limited pricing power.

Marcel Thieliant, head of Asia-Pacific at Capital Economics, said the strength of the survey could still encourage policymakers to act. He noted that firms appeared to be absorbing the energy shock for now, suggesting that underlying economic conditions remain stable enough to support a rate hike in the near term.

Capital expenditure plans among large firms also pointed to cautious optimism. Companies expect to increase investment by 3.3% in the fiscal year 2026, exceeding a median market forecast of a 3.0% rise.

The planned increase suggests that firms are continuing to invest in growth despite heightened uncertainty.The survey period, which ran from February 26 to March 31, captured responses from roughly 70% of firms by March 12, shortly after the escalation of hostilities involving the U.S.-Israel attacks on Iran on February 28.

This timing indicates that early assessments of the conflict’s economic impact are already being reflected in corporate sentiment.Economists cautioned that the positive momentum seen in the survey may not be sustained if external conditions worsen.

Stefan Angrick said that while a weak yen and subdued wage growth have supported corporate margins, broader economic challenges remain.He noted that export growth could weaken amid slowing global demand, while domestic consumption may remain constrained by modest income gains.

Over time, these factors could weigh on corporate profits and sentiment, complicating the central bank’s policy decisions.The survey underscores the delicate balance facing policymakers as they navigate between emerging inflationary pressures and risks to economic growth.

While improving sentiment and rising prices strengthen the case for tightening monetary policy, the uncertain global environment, particularly developments in the Middle East, continues to pose significant challenges for Japan’s export-driven economy.

In a joint statement, the groups warned that persistent institutional paralysis, rising protectionism and unresolved disputes risk undermining the WTO’s core functions, including its ability to negotiate new rules and enforce existing ones.

They said urgent action was needed to restore credibility and ensure the organization remains responsive to modern trade realities.

Officials highlighted the continued dysfunction of the WTO’s dispute settlement mechanism, particularly the paralysis of its appellate process, which has limited the body’s capacity to deliver binding resolutions in trade conflicts.

They called for a fully operational and accessible system to uphold rules-based trade.

The statement stressed the need to update WTO frameworks to address emerging areas such as digital commerce, industrial subsidies and supply chain resilience.

The EU and CPTPP members said current rules do not adequately reflect evolving global trade patterns or technological change.

The groups reaffirmed their commitment to a rules-based international trading system, warning that fragmentation into competing trade blocs could weaken global economic stability.

They urged broader membership engagement to advance consensus-driven reforms.

The WTO, established in 1995 to oversee global trade rules, has faced increasing pressure in recent years amid geopolitical tensions and shifting economic priorities among major economies.

In a joint statement issued during a ministerial meeting hosted by France, the group said it had emphasized the need to minimize harm to civilian populations, regional partners and essential infrastructure amid intensifying hostilities.

The statement reflected mounting concern among major economies over the humanitarian and systemic risks posed by the conflict.

The ministers underscored that safeguarding non-combatants and public infrastructure remains a priority under international norms, as recent strikes have reportedly affected energy facilities and other civilian-linked assets in the region. They stressed coordination among allies and partners to contain spillover effects.

The G7 highlighted potential disruptions to global supply chains, including energy, fertilizer and broader commercial flows, noting that such shocks could have direct consequences for domestic economies and consumers.

The ministers said efforts were underway to mitigate these risks through coordinated policy responses and international norms.

The statement also reiterated the importance of restoring safe and toll-free maritime navigation through the Strait of Hormuz, a critical chokepoint for global oil shipments.

Any prolonged disruption in the corridor could exacerbate volatility in energy markets and strain international trade routes.

The G7 comprises the United States, United Kingdom, Canada, France, Germany, Italy and Japan, along with the European Union.

The announcement comes amid a four-week conflict involving the United States, Israel and Iran that has killed thousands and disrupted global energy markets, driving up oil and liquefied natural gas prices and intensifying inflation concerns worldwide.

Deadline extended amid conflicting claimsTrump said talks with Iran were “going very well” and announced a 10-day pause on threatened attacks on Iranian energy facilities, extending an earlier five-day halt declared on March 23.

The pause is set to expire on April 6 at 2000 EDT.Iran, however, said it was not engaged in direct talks with Washington, and officials indicated the U.S. had not clarified who it was negotiating with, as senior Iranian leadership has been significantly affected by the conflict.

Mediators cited by the Wall Street Journal said Tehran had not requested the 10-day pause, while Trump told Fox News that Iran had sought a shorter, seven-day reprieve. There was no immediate confirmation from Iranian authorities.

The conflict has sharply disrupted shipping through the Strait of Hormuz, a critical artery carrying roughly a fifth of global oil and liquefied natural gas. Oil prices have surged about 40% since hostilities began, with Brent crude rising above $105 per barrel.

Iran has warned it would retaliate against energy infrastructure in the Gulf if U.S. strikes proceed, raising concerns about tit-for-tat attacks on civilian facilities that could further destabilize energy markets and regional economies.Global equities have also come under pressure, with major indexes declining amid uncertainty over the conflict’s trajectory.

The Pentagon is considering deploying up to 10,000 additional troops to the Middle East, according to U.S. media reports, while also confirming the use of uncrewed drone speedboats in operations against Iran.

Trump reiterated that the United States could escalate pressure if Iran fails to comply with demands, including reopening the Strait of Hormuz and curbing its nuclear programme, and said control of Iran’s oil resources remained an option without elaborating.

An Iranian official said a 15-point U.S. proposal conveyed through Pakistan was reviewed by senior leadership and deemed unacceptable as it primarily served U.S. and Israeli interests.

The proposal reportedly included demands to dismantle Iran’s nuclear programme, limit missile capabilities and alter control over key waterways.

Pakistan’s foreign minister said indirect communication channels remain open, with Turkey and Egypt also involved in mediation efforts.Iran has hardened its negotiating stance, seeking guarantees against future military action, compensation for war damage and greater control over maritime routes, while also insisting that Lebanon be included in any ceasefire framework.

Meanwhile, hostilities continued on multiple fronts, with Iran launching missile strikes on Israeli cities including Tel Aviv and Haifa, and Israeli strikes hitting targets in southern and central Iran, resulting in civilian casualties and infrastructure damage.

Speaking alongside Australian Prime Minister Anthony Albanese in Canberra, von der Leyen said the impact of the crisis was already being felt across economies through rising oil and gas prices.

“We all feel the knock-on effects on gas and oil prices on our businesses and our societies,” she said, highlighting the broader economic repercussions of prolonged instability in a region central to global energy production and transit.

Her remarks come as the Middle East conflict disrupts key supply routes and raises concerns over sustained volatility in energy markets.

The region accounts for a significant share of global oil exports, making it highly sensitive to geopolitical tensions.Von der Leyen emphasized that continued hostilities risk compounding inflationary pressures and undermining business confidence, particularly in energy-importing economies.

She urged all parties to pursue a diplomatic solution, stressing the urgency of de-escalation. “It is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East,” she said.

Her comments reflect growing international concern over the broader economic fallout of the conflict, as governments and institutions monitor its impact on global trade, energy flows and financial markets.

Speaking at the National Press Club in Canberra, Birol said the agency would assess market conditions before deciding on further action, after member countries agreed on March 11 to release a record 400 million barrels from strategic reserves to ease surging crude prices.

“If it is necessary, of course, we will do it,” Birol said, adding there was no fixed price threshold that would automatically trigger another coordinated release. He cautioned that stock drawdowns could help stabilise markets but would not resolve underlying supply constraints.

Birol said the Asia-Pacific region was at the forefront of the crisis due to its reliance on energy and critical commodities shipped through the Strait of Hormuz, a key maritime corridor affected by the conflict.

He described the current situation in the Middle East as “very severe,” saying its impact exceeded that of the 1970s oil shocks and the gas market fallout from the Russia-Ukraine war combined.

According to Birol, the conflict has removed around 11 million barrels per day from global oil supply, intensifying pressure on economies dependent on imports.“The single most important solution to this problem is opening the Hormuz Strait,” he said.

Birol said stock releases represented only one element of the agency’s response, pointing to demand-side measures such as reduced speed limits and increased remote working to curb fuel consumption.

He noted similar steps had helped lower energy use in Europe in 2022, though implementation would depend on national policy decisions.

“The depth of the problem was not well appreciated by decision makers around the world,” Birol said, explaining his decision to speak publicly weeks into the conflict.

During his visit, Birol met Australian Prime Minister Anthony Albanese and reviewed the country’s fuel preparedness. While noting that Australia’s overall liquid fuel reserves remain below IEA requirements, he said recent efforts had improved resilience.

He described Australia’s diesel reserves, currently at around 30 days, as “a solid number” in the current environment.

Birol is scheduled to travel to Japan later this week ahead of a Group of Seven meeting, where energy security and coordinated responses to the supply shock are expected to be discussed.

Spot gold climbed more than 2% in a single session, extending its gains to nearly 18% so far this year after an already exceptional rise in the previous year. Market participants are increasingly viewing gold as a store of value as volatility spreads across currencies, equities, and sovereign debt markets.

Silver also joined the rally, scaling a record peak above $112 per ounce, while platinum and palladium touched multi-year and all-time highs respectively. The synchronized surge across precious metals highlights strong investor demand and tightening supply conditions in physical markets.

Analysts say geopolitical developments are the primary force behind the current price momentum, with uncertainty surrounding trade policies, diplomatic relations, and military tensions driving capital into hard assets. Gold’s appeal has strengthened further as investors seek insulation from sudden policy shifts and global shocks.

Central bank buying has added significant support to gold prices, with several monetary authorities accelerating reserve diversification away from the U.S. dollar. This sustained institutional demand has created a strong floor for prices even during periods of short-term market correction.

Investment flows into physically backed exchange-traded funds have also rebounded sharply, signaling renewed interest from retail and institutional investors alike. Holdings have increased substantially over the past year, reinforcing the long-term bullish outlook for the metal.

Political developments in the United States have further fueled market unease, with renewed trade threats and pressure on monetary authorities unsettling investors. Expectations that interest rates may eventually be cut have added to gold’s attractiveness, as lower yields reduce the opportunity cost of holding non-yielding assets.

Gold’s rise has been particularly strong in Asia and Europe, where first-time investors are increasingly entering the precious metals market. This wave of new participation suggests that demand is broad-based rather than driven solely by speculative trading.

Analysts at major financial institutions believe the rally may not be over, with some forecasting prices could reach $6,000 per ounce by the end of the year. Even more conservative estimates point to sustained strength as long as geopolitical and economic risks remain elevated.

Silver’s surge has been amplified by its dual role as both a precious and industrial metal, with tight supplies and strong investment demand pushing prices higher. However, some analysts caution that extremely high prices could eventually dampen industrial consumption.

Platinum and palladium have also benefited from supply constraints and renewed interest from investors seeking diversification within the metals complex. Their gains reflect broader confidence in commodities as a hedge against inflation and currency instability.

Overall, the record-breaking rally in gold and other precious metals underscores a global shift toward safety and tangible assets. As uncertainty continues to dominate the macroeconomic landscape, precious metals are likely to remain at the center of investor strategies worldwide.

Geopolitics, markets, and technology intersected sharply this year, revealing deep anxieties about global stability, economic coordination, and the future of leadership.

The meeting made it clear that traditional alliances are under strain and that nations are reassessing how quickly and independently they must act in a rapidly changing world.

Europe emerged from Davos more united but also more cautious, having learned the cost of confronting U.S. pressure directly. Trump’s controversial remarks and actions related to Greenland crossed long-standing European red lines on territorial sovereignty, prompting rare resistance from European leaders.

While financial market reactions may have played a role in Trump stepping back, the episode badly shook Europe’s confidence in the transatlantic relationship.

European officials openly admitted that decision-making within the European Union is often too slow, and conversations in Davos focused heavily on accelerating collective responses to future crises.

Ukraine briefly faded into the background early in the meeting but returned to the spotlight as President Volodymyr Zelenskiy arrived for high-level talks.

Despite public statements suggesting progress, a peace agreement remained distant, with territorial disputes still unresolved.

The presence of a Russian envoy for talks with U.S. officials, the first such visit since the 2022 invasion, highlighted how geopolitical realities are reshaping diplomatic engagement.

Davos also became a forum for debating potential U.S. action against Iran, with leaders questioning not just the likelihood of intervention but the consequences of regime instability.

Economic discussions at Davos were dominated by uncertainty and concern over rising protectionism. Threats of U.S. tariffs against European allies heightened fears that the global trading system is fragmenting.

Business leaders repeatedly stressed the need for stability, predictability, and respect for the rule of law, qualities many felt were increasingly scarce.

These tensions strengthened arguments for diversifying trade away from over-reliance on the U.S. and building stronger regional and multilateral economic ties.

Financial leaders expressed cautious optimism about growth but warned of policy risks. Banking executives discussed challenges ranging from artificial intelligence disruption to regulatory pressure and consumer affordability.

Warnings were issued about proposals such as capping credit card interest rates, which some leaders argued could destabilize credit markets.

At the same time, crypto executives promoted stablecoins and blockchain as transformative tools, while traditional banks remained divided between experimentation and skepticism.

Concerns about asset bubbles, central bank independence, and long-term inflation lingered over market discussions.

Artificial intelligence was one of the most visible themes in Davos 2026, with major technology leaders making rare appearances. AI companies used the event to push enterprise adoption and reassure investors after months of valuation doubts.

Unlike late 2025, executives now expressed greater confidence that AI investment is moving from hype to practical implementation.

Still, worries about concentration of power, regulation, and long-term societal impact remained part of the conversation, underscoring that AI’s promise comes with complex trade-offs.

Overall, Davos 2026 reflected a world grappling with leadership unpredictability, shifting alliances, economic fragmentation, and technological acceleration. The meeting underscored that while global cooperation is under pressure, the urgency to adapt has never been greater.

The forum ended not with clear solutions but with a shared recognition that the global order is entering a more volatile and uncertain phase.

Global leaders left Davos aware that speed, adaptability, and trust will define the next chapter of international politics and economics.

The forum, held under the theme “A Spirit of Dialogue,” provides a strategic platform for Saudi Arabia to share its Vision 2030 experience while reinforcing partnerships that address shared global challenges in an increasingly interconnected world.

Prince Faisal emphasized that long-term prosperity cannot be achieved by governments acting alone, stressing that meaningful collaboration between the public and private sectors is essential for sustainable growth, resilience, and innovation.

He noted that Saudi Arabia views the World Economic Forum as a vital space for exchanging ideas on economic transformation, environmental responsibility, technological advancement, and human development, all of which are core pillars of the Kingdom’s national vision and reform agenda.

The Saudi delegation includes senior officials responsible for finance, investment, economy and planning, commerce, tourism, industry and mineral resources, as well as communications and information technology, reflecting the breadth of the Kingdom’s reform efforts.

Their participation in bilateral meetings and public sessions is aimed at deepening cooperation with international partners, attracting investment, and showcasing Saudi Arabia’s progress in diversifying its economy beyond oil while strengthening institutional capacity and competitiveness.

Prince Faisal highlighted that Saudi Arabia continues to develop new business models and policy frameworks that encourage innovation, enhance productivity, and create high-quality investment opportunities aligned with global trends.

He added that the Davos forum enables constructive engagement with governments, business leaders, and civil society representatives on pressing issues such as global economic uncertainty, climate challenges, digital transformation, and inclusive growth, all of which require collective action and shared responsibility.

Saudi House will also return to Davos in 2026 after its successful debut, hosting more than 20 focused sessions on investment, human capability development, quality of life, and global collaboration.

These sessions are designed to present Saudi perspectives, facilitate dialogue, and build bridges between international stakeholders, reinforcing the Kingdom’s image as an active contributor to global solutions rather than a passive participant.

The 56th World Economic Forum annual meeting is expected to attract around 3,000 participants from nearly 130 countries, including heads of state, government officials, CEOs, and thought leaders.

Saudi Arabia’s strong presence at the forum reflects its confidence in its reform trajectory and its willingness to engage openly with the world to promote stability, shared prosperity, and sustainable development through dialogue and cooperation.