Oil prices and stock markets swing on fears of a prolonged Iran conflict

Financial markets are reacting to the conflict in Iran, with oil prices rising and stock markets becoming volatile. The main concern is that a drawn-out war could threaten the global economy by disrupting energy supplies.

Aramco, the Saudi oil company, has asked its Asian customers to prepare backup plans for receiving oil if shipments through the Red Sea and the Strait of Hormuz are disrupted. The situation has also raised fears about inflation in the US and prompted the Philippines to adopt a four-day work week to save on energy costs.