JD Vance is expected to travel to Islamabad, Pakistan, on Tuesday for potential negotiations with representatives from Iran, but peace talks are still uncertain as the end of the ceasefire approaches.
Markets were hopeful on Friday after Iran announced that the Strait of Hormuz would be reopened to commercial vessels. Now, escalating tensions are bringing expectations back down.
The head of the International Energy Agency warned that if the Strait of Hormuz doesn't reopen soon, the availability of jet fuel will continue affecting airlines and summer travel.
Mohamed El-Erian, professor at the Wharton School and chief economic advisor at Allianz, says the war, among other things, is wearing down confidence in the U.S. and its “ability to inform and influence outcomes.”
Analysts say the global oil market faces months of disruption from damaged infrastructure, a slow reopening of the Strait of Hormuz, and drawn-down reserves.
In the U.S., we’re paying more at the pump. Abroad, the war in the Middle East may have more dire and immediate effects — that’s especially true in South and Southeast Asia.
Businesses that rely on aluminum are deciding whether to absorb the costs or pass them on to their customers. To make that decision, many are drawing from their experiences with tariffs.
