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Middle East war: global economic fallout
Paris, France, April 7 (AFP) Apr 07, 2026
Here are the latest economic events in the Middle East war:


- Global stocks mostly fall, oil mixed -


Global stock markets mostly pulled back Tuesday as investors braced for US President Donald Trump's looming deadline for Iran -- to reopen the Strait of Hormuz or face devastating attacks.

Oil prices jumped after US-Israeli strikes on the key Iranian oil export terminal of Kharg island.

But they later moderated, with the West Texas Intermediate rising 0.5 percent to $112.95 a barrel and the Brent international benchmark slipping 0.6 percent to $109.27 a barrel.


- Madagascar declares energy emergency -


Madagascar declared a two-week national energy emergency, saying disruptions in supply because of the war in the Middle East were causing crisis.

The Indian Ocean island is a net importer of fuel, most of which comes from Oman, just south of the crucial Strait of Hormuz.


- Saudi petrochemical complex hit -


Overnight attacks on Saudi Arabia hit a petrochemical complex in a sprawling industrial area in the eastern city of Jubail, a witness who requested anonymity told AFP on Tuesday, hours after similar installations in Iran were struck.

Jubail is home to one of the world's largest industrial cities, where steel, gasoline, petrochemicals, lubricating oil and chemical fertilisers are produced.


- Bahrain's main port to pause operations -


Bahrain's main port will suspend operations starting early Wednesday, around the time of a US deadline for Iran to agree to a deal or face attacks on civilian infrastructure.

"Operations in Khalifa Bin Salman Port will be temporarily suspended from early April 8," APM Terminals Bahrain, which operates the port, told AFP.


- Russia, China veto UN resolution on Strait of Hormuz -


Russia and China vetoed a UN Security Council resolution Tuesday on reopening the Strait of Hormuz, a text already diluted from the green light Gulf states had sought to use force to protect the key shipping lane.

The draft resolution prepared by Bahrain and supported by the United States received 11 votes in favor, two against and two abstentions. Bahrain's Foreign Minister Abdullatif bin Rashid Al Zayani said Gulf states "regret" the rejection of the measure.


- Iran reports strikes on bridges, key highway, railways -


Iranian officials reported damage to bridges, railway systems and highways on Tuesday as part of a wave of deadly airstrikes on infrastructure.

A bridge near the holy city of Qom and another carrying a railway line in the central city of Kashan were struck, according to regional officials quoted by state media.

A key highway in northern Iran connecting the main northern city of Tabriz with Tehran via Zanjan was also temporarily closed after a hit around 90 kilometres (55 miles) outside of Tabriz, IRNA and Fars agencies reported.


- US-Israeli strikes hit Kharg island -


US-Israeli strikes have hit the key Iranian oil export terminal of Kharg island, media reported Tuesday.

"The American-Zionist enemy has carried out several attacks on Kharg island, and several explosions have been heard there," Iran's Mehr news agency reported.

According to an X post by journalist Barak Ravid of the news site Axios, citing a US official, the US carried out "strikes on military targets" on the island located off Iran's western coast.


- Iran Guards threaten oil supply -


Iran's Revolutionary Guards warned they would deprive the United States and its allies of oil and gas "for years" if Washington crossed Tehran's "red lines", a statement carried on state television said.

"For the sake of good neighbourliness (we) have had some reservations in choosing targets for retaliation, but all these reservations have since been removed," it said.

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