The war in the Middle East has left global investors grappling with the impact of a drawn-out regional conflict on global energy supplies and its potential to stoke inflation around the world. Global stock markets have been sinking and oil and gas prices have soared since Monday, the first day of trading after US and Israeli attacks on Iran on Saturday (February 28) and Iran’s response, which involved targeting major oil and gas infrastructure in the region.

Brent crude continued its rise on Wednesday, after breaching $80 (€69) a barrel the day before. Gas prices have also soared in Asia and Europe. Much of the investor attention continues to be on the Strait of Hormuz, a key chokepoint accounting for around 20% of global oil supply and large quanтιтies of gas. An official from Iran’s Revolutionary Guards ⁠said ​the waterway is closed and that Iran “will set fire to any ship attempting to pᴀss through the strait.

” However, Bloomberg reported that China was pushing Iran to keep the strait open to tanker traffic. China, the world’s largest oil and gas importer, is among the most exposed countries, as the strait is the source of half of China’s oil imports. US President Donald Trump announced a plan on Tuesday to insure and escort oil tankers and other vessels through the strait. The move failed to calm investors because it lacked details, and experts said the plan could take time to implement.

“This is welcome news, but clearly it won’t happen overnight. Naval escorts would be helpful, but again, this effort will take time,” ING analysts said in a note. “Naval escorts will be sitting ducks to Iranian attacks. So, the US may choose to wait before escorting vessels until it gauges that Iran’s ability to attack has been degraded.”