Jorgensen said the bloc is assessing “all possibilities” as it braces for sustained disruption, warning that energy prices are likely to remain elevated for an extended period. “This will be a long crisis energy prices will be higher for a very long time,” he said in the interview.

He added that for certain critical energy products, market conditions could deteriorate further in the coming weeks, underscoring concerns about supply constraints and volatility linked to the conflict.

The European Union has previously relied on coordinated measures such as strategic stock releases and demand reduction during periods of supply stress. Officials are now evaluating whether similar or more stringent interventions may be required if the crisis deepens.

The developments come as geopolitical tensions in the Middle East continue to disrupt global energy flows, raising risks for import-dependent economies and adding pressure to inflation across the region.

The FAO Food Price Index, which tracks international prices of a basket of widely traded food commodities, averaged 128.5 points in March, up 2.4% from a revised February level, according to the agency.

The increase reflects upward pressure in global food markets, though the FAO did not specify individual commodity drivers in its summary release.

In a separate report, the FAO slightly raised its forecast for global cereal production in 2025 to a record 3.036 billion metric tons, representing a 5.8% increase compared with the previous year.The updated outlook suggests improved supply prospects for staple crops, even as price trends point to continued volatility in international food markets.

“The U.S. military hasn’t even started destroying what’s left in Iran. Bridges next, then Electric Power Plants,” Trump wrote on social media, urging Iran’s leadership to act quickly in response to Washington’s demands.

In a televised address a day earlier, Trump said military operations could intensify over the coming weeks if Tehran did not comply, with possible strikes extending to energy and oil facilities. However, he did not provide a clear timeline for the end of the conflict.

The war, which began on February 28 with coordinated U.S. and Israeli attacks on Iran, has since expanded, with Tehran launching retaliatory strikes on Israel and Gulf states hosting U.S. military bases. The conflict has resulted in thousands of deaths and widespread displacement, while also driving up global oil prices and increasing volatility in financial markets.

Iranian media, including Fars News Agency, reported that regional infrastructure, including major bridges in neighboring countries, could also face risks following recent strikes.

The latest remarks have drawn scrutiny from legal experts. Dozens of international law specialists in the United States signed an open letter warning that attacks on infrastructure essential for civilian life could violate the Geneva Conventions, which prohibit targeting civilian objects and require distinction between military and non-military assets during armed conflict.

Trump’s statements add to uncertainty surrounding U.S. strategy in the conflict, with shifting objectives and timelines contributing to concerns among analysts about the scope and duration of military operations.

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.

The Nifty 50 gained 1.56% to close at 22,679.40, while the BSE Sensex advanced 1.65% to 73,134.32, marking a strong start to the new fiscal year after steep losses in March.Fourteen of the 16 major sectors ended higher, with broader markets outperforming.

The Nifty Smallcap 100 rose 3.3% and the Nifty Midcap 100 climbed 2.2%, reflecting renewed risk appetite among investors.Global equities also surged, with Asian markets posting their biggest one-day gain since November 2022 and Europe’s STOXX Europe 600 rising 2.1%, as easing geopolitical concerns buoyed sentiment.

Oil prices retreated, with Brent crude falling to around $103 per barrel after remarks by Donald Trump indicated a potential exit from the Iran conflict. Investors are now awaiting further updates in a scheduled address on Thursday.

“The markets are at levels where opportunities may emerge across sectors, though risks remain,” said Prateek Agrawal.

Indian equities had declined sharply in March, with both the Nifty 50 and Sensex falling more than 11% each, their steepest monthly losses in six years, as foreign investors pulled out a record $12.7 billion amid heightened geopolitical uncertainty.

Analysts said a resolution to the Middle East conflict could support the rupee and revive foreign portfolio inflows, reversing the trend seen in March after earlier buying in February.

Gains on Wednesday came despite higher domestic fuel prices, with retailers raising rates for jet fuel and commercial liquefied petroleum gas.

Shares of companies in sectors such as fertilisers, restaurants, tourism and rice exports led the advance as optimism over easing global risks outweighed cost concerns.

Two senior diplomats said India indicated late on Friday it could accept a two-year extension of the moratorium, which covers digital downloads and streaming services and is set to expire this month.

The move follows earlier remarks by Commerce Minister Piyush Goyal calling for a “careful reconsideration” of the long-standing arrangement.

Despite the apparent flexibility, gaps between New Delhi and Washington remain significant. The United States has pushed for a permanent extension, with U.S. Trade Representative Jamieson Greer stating Washington is not interested in a temporary renewal.

Diplomatic sources said negotiations were ongoing, with some members exploring a compromise that would extend the moratorium beyond the next ministerial conference, potentially for five to ten years. It remains unclear whether either side would accept such a proposal.

Business groups have warned that failure to extend the moratorium could introduce uncertainty into cross-border digital trade, raising the possibility of new duties on electronic transmissions.For nearly three decades, WTO members have routinely renewed the measure at successive ministerial meetings.

The current debate comes amid wider strains on the global trading system following tariff disputes and disruptions linked to geopolitical tensions affecting shipping, energy prices and supply chains.

The outcome of talks in Yaounde is being closely watched as a gauge of the WTO’s ability to deliver consensus at a time of deep divisions among major economies.

Norwegian Foreign Minister Espen Barth Eide said extending the moratorium for a meaningful period would be significant for some countries and demonstrate that ministers can reach concrete outcomes.

Speaking at the Saudi-backed Future Investment Initiative summit in Miami, Trump said, “We’re negotiating now but they have to open it up,” referring to the vital maritime route that has been largely disrupted during the war.

The Strait of Hormuz, through which roughly one-fifth of global oil supply typically passes, has seen sharply reduced traffic since the conflict began, contributing to rising energy prices and global market uncertainty.

Trump said Iran was “on the run” and repeated claims that its military and nuclear capabilities had been significantly weakened, despite Tehran’s denials.U.S. Secretary of State Marco Rubio earlier warned that Iran could seek to impose a “tolling system” on vessels transiting the strait, raising concerns over long-term disruptions to global shipping.

Trump praised Mohammed bin Salman and other Gulf leaders from the United Arab Emirates, Qatar and Bahrain for what he described as efforts to promote regional stability.Calling the Saudi crown prince a “close friend,” Trump said Riyadh had played a constructive role in ongoing diplomatic outreach.

The U.S. president also questioned Washington’s commitment to NATO, suggesting the United States might reconsider its obligations if European allies continued to withhold support in the Iran conflict.

“We would have always been there for them but now I guess we don’t have to be,” Trump said, framing the issue as one of burden-sharing within the alliance.

The conflict, now entering its fourth week, has disrupted shipping through the Hormuz corridor, with only limited vessel movement reported amid heightened security risks and ongoing military activity in the region.

Financial markets are showing signs of diminishing responsiveness to statements by Donald Trump on the conflict involving Iran, as investors weigh inconsistent signals against ongoing geopolitical and economic risks.

Earlier this week, a social media post by Trump describing talks with Iran as “very good and productive” triggered a broad market reaction. Oil prices dropped more than 10%, global equities rallied, the dollar weakened, bond yields fell and gold prices rose, illustrating the sensitivity of asset classes to perceived diplomatic progress.

However, subsequent remarks by Trump extending a deadline for potential U.S. military action against Iranian energy infrastructure to April 6 produced a more muted response. U.S. equities pared losses only slightly, while crude prices stabilised rather than reversing course.

By early Friday, Brent crude had resumed its upward trajectory, trading above $109 per barrel, and S&P futures were again in negative territory.

Market participants appear increasingly cautious amid conflicting narratives from Washington and Tehran. While Trump said Iran had requested a seven-day reprieve, reports citing mediators indicated no such request had been made. Iranian officials have also rejected a 15-point U.S. proposal aimed at ending the conflict.

At the same time, reports suggest the United States may deploy an additional 10,000 troops to the Gulf region, reinforcing concerns that the conflict could escalate even as diplomatic channels remain open.

This divergence has complicated pricing across asset classes, with investors struggling to assess the likelihood of either a near-term resolution or further escalation.

Since the conflict began on February 28, traditional safe-haven assets have not behaved uniformly. U.S. Treasury securities have weakened, reflecting inflation concerns and expectations of a more hawkish stance from the Federal Reserve, alongside signs of strain in government debt markets following a series of weak auctions.

Gold prices have also softened during the period, contrary to typical crisis-driven demand, prompting some investors to reassess assumptions about its role as a hedge during geopolitical shocks.Concerns are also building in private credit markets.

Firms including Ares Management and Apollo Global Management have restricted investor withdrawals from certain funds after an increase in redemption requests, signalling stress in less liquid segments of the financial system.

Despite volatility, some analysts are turning more constructive on U.S. equities, citing expectations of strong earnings growth. Several major banks have raised forecasts for the S&P 500, suggesting resilience in corporate performance even amid geopolitical uncertainty and concerns around artificial intelligence investment cycles.

In energy markets, the oil futures curve continues to indicate expectations of a relatively swift resolution to supply disruptions, despite estimates that as much as 20 million barrels per day could be affected by the conflict and related infrastructure damage.

The Strait of Hormuz, a critical global energy corridor, remains central to market dynamics. Investors appear to be pricing in a reopening of the route, although current conditions reflect ongoing disruption.U.S. gasoline prices are approaching $4 per gallon, indicating that domestic consumers are beginning to feel the impact of higher crude prices despite the country’s substantial energy production capacity.

Public sentiment has also weakened. A Reuters/Ipsos poll showed only 29% approval for Trump’s handling of the U.S. economy, marking the lowest level recorded for him on this measure.

The effects of the conflict are extending beyond crude markets. Natural gas markets may face more severe disruptions due to limited storage capacity, rigid supply chains and infrastructure constraints, particularly in Europe, which remains heavily dependent on gas imports.

This could force policymakers in Europe to reconsider elements of their climate transition strategies in the near term, as energy security concerns take precedence.

In contrast, the crisis may accelerate the adoption of alternative energy technologies in Asia, especially electric vehicles, where supply chains remain more flexible and policy support is strong.Geopolitical scheduling also reflects expectations around the conflict’s trajectory.

Trump has postponed a planned visit to China to meet Xi Jinping until mid-May, signalling an expectation that the situation may stabilise within weeks rather than days.

Markets remain highly sensitive to developments, but recent price action suggests that investors are placing greater emphasis on concrete developments rather than political messaging alone.

The benchmark Nifty 50 climbed 1.6% to 23,277.50, while the BSE Sensex gained 1.53% to 75,212.07 as of 9:50 a.m. IST, putting markets on track for a second straight day of advances.

Market sentiment improved after reports that Washington has proposed a month-long ceasefire and presented Tehran with a 15-point framework aimed at de-escalating the conflict.

The development raised expectations of reduced geopolitical risk, particularly around global energy supply disruptions.The conflict has unsettled financial markets in recent weeks, with concerns over oil supply routes and inflationary pressures weighing on investor confidence.

Markets track global cuesIndian equities, which are sensitive to global risk sentiment and crude price movements, reacted positively to signs of potential diplomatic progress.

A de-escalation could help stabilise energy prices, a key factor for India as a major oil importer.

Gains in domestic markets reflect broader optimism that easing tensions may reduce volatility across emerging markets, which have been under pressure amid the ongoing conflict.

The Israeli military said the incoming missiles activated warning systems across several regions, with interceptions heard over Tel Aviv. In northern Israel, residential buildings were damaged by debris from intercepted projectiles.

No fatalities were reported.The escalation came hours after Trump said he would delay, by five days, a planned strike on Iran’s power grid, citing what he described as “very good and productive” discussions aimed at resolving hostilities in the Middle East.

Iranian officials moved swiftly to counter Trump’s statement. Parliament Speaker Mohammad Baqer Qalibaf said no talks had taken place, calling the U.S. claims “fake news” intended to manipulate financial and oil markets and deflect from mounting geopolitical pressure.

According to sources familiar with the matter, Qalibaf had been identified as a key interlocutor in the purported exchanges. However, his public denial cast doubt on the existence of any backchannel diplomacy.

Iran’s Revolutionary Guards said they were continuing operations, including attacks on U.S. targets, and described Trump’s remarks as “psychological operations” with no bearing on Tehran’s military posture.

Global markets reacted sharply to the shifting narrative. Trump’s announcement of a delay in military action had initially buoyed investor sentiment, pushing share prices higher and driving oil below the $100-per-barrel mark after earlier volatility tied to threats of escalation.

By Tuesday, those gains appeared at risk as renewed hostilities and Iran’s rejection of negotiations reintroduced uncertainty into energy markets and broader risk sentiment.

The diplomatic confusion follows Trump’s weekend ultimatum demanding that Iran reopen the Strait of Hormuz within 48 hours. The strategic waterway carries roughly one-fifth of the world’s oil and liquefied natural gas, making it a critical chokepoint for global energy supply.

Iran has not indicated any shift in its stance on the strait, and the continued exchange of threats and military actions has heightened concerns over potential disruptions to energy flows and regional stability.