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Middle East war: Latest on the global economic fallout
BBusiness

Middle East war: Latest on the global economic fallout

  • March 12, 2026

Crude prices pushed higher despite the International Energy Agency announcing its members had agreed to unlock 400 million barrels of oil from their reserves – their largest release ever.

Iran prepared to ‘destroy’ world economy

Iran said it was ready for a long war of attrition that would “destroy” the world economy.

The US and Israel “must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy”, Ali Fadavi, adviser to the Revolutionary Guards’ commander-in-chief, told state television.

G7 rejects lifting Russian sanctions

Group of Seven nations rejected easing punitive measures against Russia over its invasion of Ukraine as the Middle East war wreaks havoc on global oil markets, France’s President Emmanuel Macron said.

“This situation in no way justifies lifting the sanctions that exist against Russia,” he said after a video call with other G7 leaders to discuss the war’s economic fallout.

Ships hit

Iran’s Revolutionary Guard said it had struck the Liberian-flagged container ship Express Rome and the Thai bulk carrier Mayuree Naree because they had entered the Strait of Hormuz “after ignoring the warnings”.

Iraqi officials later said they had rescued 20 crew of an oil tanker that came under an unspecified attack in the country’s territorial waters.

Drones hit Oman port

Drones struck fuel tanks at Oman’s Salalah port, state media reported.

Citi, Deloitte, PwC clear offices in Gulf

Several major international businesses closed or evacuated offices in Gulf countries after Iran threatened US- and Israel-linked economic targets and centres in the Middle East.

US finance group Citi and British consultancy Deloitte evacuated offices in Dubai’s financial centre, while PwC, another British consultancy, closed offices in Saudi Arabia, Qatar, the UAE and Kuwait.

Fuel queues

Tanker drivers in Pakistan said they were facing long waits at depots due to a shortage of fuel, as the Government played down fears of another rise in prices over the war.

Drones target Saudi oil field

Saudi Arabia’s Defence Ministry said on X that it had intercepted seven drones heading towards the Shaybah oil field in the southeast of the country.

ECB inflation vow

European Central Bank chief Christine Lagarde said that “everything necessary” would be done to “keep inflation under control”.

Hormuz standoff

The White House said yesterday that the US Navy had not escorted any tankers through the strategic Gulf passage.

Iran’s Revolutionary Guards said no US Navy vessel has “dared” to approach the strait.

UAE refinery

The region’s biggest single-site oil refinery, at Ruwais in the United Arab Emirates, was closed as a precaution after a drone attack on the industrial complex that houses it caused a fire, a source familiar with the situation told AFP.

A driver working at the complex, who asked not to be named, told AFP they saw “bursts of fire rising from the complex, with loud sounds like explosions”.

-Agence France-Presse

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