EconoTicker

Pope Leo urged Israeli President Isaac Herzog to help reopen all paths of dialogue to end the war in Iran, according to a Vatican statement issued after a phone call between the two leaders on Friday, April 3. The Vatican also said the two sides stressed the need to protect civilians and uphold international and humanitarian law, underscoring the Holy See’s continued push for de-escalation through diplomacy rather than further military escalation.

Possible Market Effect: The call adds to diplomatic pressure for de-escalation, which could modestly support risk sentiment if followed by concrete talks, though markets are still likely to remain cautious until there is visible progress.

Source: Vatican; Reuters.

Ukrainian President Volodymyr Zelensky said Ukraine can help with efforts related to reopening the Strait of Hormuz, arguing that Iranian pressure on the waterway is shaking the global economy. Speaking on Thursday, April 2, he said no one had specifically asked Ukraine to intervene, but that Kyiv had told officials in the Middle East and the Persian Gulf that it was ready to assist on any defense-related issue.

Zelensky did not spell out exactly how Ukraine could participate, but he pointed to Ukraine’s experience in restoring maritime access in the Black Sea after Russian attempts to block it. Reuters reported that he framed Ukraine’s contribution around its wartime maritime expertise, including lessons from countering Russia’s naval presence and developing technologies such as sea drones.

He also said that Ukraine has been trying to keep itself engaged with Middle Eastern partners at a time when there are concerns that the war in the region could push Ukraine down the global agenda. Reuters added that Ukraine’s foreign minister took part in a virtual meeting of about 40 countries focused on reopening Hormuz, while Zelensky recently visited several Middle Eastern states and highlighted defense cooperation with regional partners.

Source: Reuters.

Axios reported that the U.S. State Department quietly expelled Saadat Aghajani, Iran’s deputy representative to the United Nations, in December 2025 over national security concerns. According to the report, Washington sent a formal diplomatic note on December 4 ordering his immediate departure under the State Department’s internal “Section 13” procedure, a mechanism used for low-profile removals without a formal public persona non grata declaration. A State Department official confirmed that such a note was sent on December 4 regarding certain Iranian U.N. personnel, but declined to discuss specifics for privacy and security reasons.

Axios said the move was kept confidential at the time and was one of at least three expulsions of Iranian diplomats in New York over the previous six months. The report also said Aghajani’s children, who remained in New York after his departure, were later asked to leave as well. Separately, Reuters had reported in December 2025 that the U.S. had tightened restrictions on Iranian diplomats in New York, including limiting their movement and preventing three Iranian mission staff from continuing their duties.

Source: Axios; Reuters.

Britain said it will deploy its Rapid Sentry air defence system to Kuwait after an overnight Iranian drone attack on a Kuwaiti oil facility, with Downing Street saying the move is meant to help protect British and Kuwaiti interests in the Gulf. Prime Minister Keir Starmer discussed the deployment in a Friday morning call with Kuwait’s Crown Prince Sheikh Sabah Al-Khalid Al-Sabah, and a spokesperson said Starmer opened the conversation by condemning the “reckless” overnight drone strike on a Kuwaiti refinery.

The announcement underscores how Gulf energy infrastructure remains directly exposed to the widening regional conflict, while Western allies move to strengthen defensive cover around key facilities and maritime routes. Britain also said the two leaders discussed disruption to global shipping through the Strait of Hormuz, keeping the security of energy flows at the center of the response.

Possible Market Effect: The deployment may offer some reassurance for regional air defence coverage, but it also highlights that attacks on Gulf oil infrastructure remain an active market risk, which can keep a geopolitical premium in crude and shipping-sensitive assets. This market implication is an inference based on the reported attack and the UK response.

Source: Reuters.

British Prime Minister Keir Starmer condemned the overnight Iranian drone attack on a Kuwaiti oil refinery during a phone call with Kuwait’s Crown Prince Sheikh Sabah al-Khalid al-Sabah, according to Downing Street. The UK said Starmer reiterated that Britain stands with Kuwait and its Gulf allies as regional tensions continue to threaten energy infrastructure and maritime security.

London also said the two leaders discussed disruption to global shipping through the Strait of Hormuz, while Britain announced the deployment of its Rapid Sentry air defence system to Kuwait to help protect British and Kuwaiti personnel and interests in the Gulf.

Possible Market Effect: The statement reinforces the view that attacks on Gulf energy assets remain a live risk for oil markets, keeping geopolitical risk premium elevated in crude and shipping-sensitive assets. This market implication is an inference based on the reported attack and the UK response.

Source: Reuters.

French President Emmanuel Macron said reopening the Strait of Hormuz by force is unrealistic, and argued that the waterway should be restored through diplomacy rather than a new military push. At the same time, France has been discussing a strictly defensive multinational mission aimed at organizing the resumption of shipping once hostilities have ceased.

France has already sounded out dozens of countries on what such a future mission could look like, and Macron has also coordinated with partners in Asia on the need to restore freedom of navigation. The message from Paris is that any French-backed effort would be framed as a peaceful, defensive stabilization operation, not a combat mission to force the strait open during active fighting.

Possible Market Effect: Macron’s stance supports hopes for a diplomatic path to normalize shipping, but it also confirms that a full reopening of Hormuz is still tied to de-escalation. That means oil and freight markets are likely to remain sensitive to war headlines until there is clearer progress on a ceasefire or shipping framework.

Source: Reuters.

The Kremlin said President Vladimir Putin has been devoting substantial attention to the escalating Middle East crisis and is trying to help reduce tensions through ongoing contacts with regional leaders. Kremlin spokesman Dmitry Peskov said on April 2 that Putin was continuing those discussions and that Russia was ready to contribute if its role could help move the conflict from a military track toward a peaceful one.

That diplomatic effort remained visible on April 3, when the Kremlin said Putin held a phone call with Turkish President Recep Tayyip Erdogan and discussed the situation in the Middle East. The statement underscores Moscow’s attempt to stay engaged with regional actors as the crisis continues to widen.

Possible Market Effect: Any sign of active de-escalation diplomacy can modestly ease geopolitical risk sentiment, but markets are likely to remain cautious until talks produce clearer results on energy security and regional stability. This market implication is an inference based on the conflict’s current macro sensitivity.

Source: Reuters; Kremlin.

Citizen footage circulated by Iran International appeared to show a heavily damaged building near Baqeri Highway in Tehran, with papers scattered across the area after a reported strike. Other reporting from the period also referenced strikes in the Baqeri corridor, suggesting the area was among the locations hit during the latest wave of attacks.

Based on the circulated images, some of the papers appeared to be security- or intelligence-related training materials. However, the exact function of the building and the authenticity or full context of the documents could not be independently verified from the available reporting, so the incident is best treated as a citizen-reported development rather than a fully confirmed official disclosure.

Source: Iran International/citizen footage.

A French-owned container ship, CMA CGM Kribi, has passed through the Strait of Hormuz, marking a rare breakthrough in traffic through the waterway after weeks of severe disruption. Ship-tracking data cited by Reuters and Bloomberg showed the Malta-flagged vessel completed the transit on April 2, becoming the first known Western Europe-linked ship to make it through since the war began in late February.

The passage suggests that some non-U.S. and non-Israeli-linked vessels may now be receiving limited clearance, even as Hormuz remains far from fully normalized. The ship reportedly signaled its French ownership before entering the zone, underscoring how nationality and political positioning are now shaping maritime access through one of the world’s most critical energy chokepoints.

Possible Market Effect: The transit is a modest positive sign for shipping sentiment, but not enough to remove the geopolitical risk premium from oil and freight markets. Traders are still likely to treat Hormuz traffic as fragile and highly headline-sensitive.

Source: Reuters; Bloomberg.

A spokesperson for Iran’s Khatam al-Anbiya Central Headquarters warned that if U.S. threats to strike more Iranian infrastructure are carried out, Iran’s armed forces would respond against U.S. and Israeli assets and interests across the region. The warning came after President Donald Trump renewed threats to intensify attacks on Iran, including against civilian power infrastructure, as the war and pressure on shipping through the Strait of Hormuz continued to rattle markets.

The spokesman also said that countries hosting American military bases in the region should force U.S. forces to leave if they want to avoid damage, signaling that the conflict could expand further across neighboring states if escalation continues.

Possible Market Effect: The statement is likely to keep the geopolitical risk premium elevated in oil, shipping, and regional assets, because it reinforces fears that attacks could spread to a broader set of energy, logistics, and military-linked facilities across the Persian Gulf.

Source: Reuters; CGTN.

The United Arab Emirates said its air defence systems are actively intercepting missiles and drones launched toward the country from Iran. The UAE Ministry of Defence said the latest wave was successfully engaged, underscoring that the threat to Gulf airspace remains live as the regional conflict continues.

The ministry said debris from interceptions has fallen in separate areas and caused minor material damage to some civilian facilities, while authorities moved quickly to secure affected sites and protect residents. It also said the UAE remains on high alert and reserves the right to respond to what it called a serious violation of sovereignty and international law.

Possible Market Effect: The development is likely to keep geopolitical risk premiums elevated in oil and regional risk assets, especially if repeated missile and drone activity raises concerns over energy infrastructure and cross-border security in the Persian Gulf.

Source: Emirates News Agency / UAE Ministry of Defence.

Kuwait Petroleum Corporation said the Mina Al-Ahmadi refinery was struck by drones early on Friday, April 3, triggering fires in several operational units. Emergency and firefighting teams were deployed to contain the blaze and prevent it from spreading, while no injuries were reported.

The incident places another major Gulf energy asset under direct pressure and underscores how regional tensions are increasingly reaching oil and refining infrastructure. With Mina Al-Ahmadi, one of Kuwait’s key refining facilities, the attack is likely to keep markets alert to further energy-supply and shipping risks across the Persian Gulf.

Possible Market Effect: Even without reported casualties, an attack on a major refinery can reinforce risk premiums in oil prices and keep traders focused on the vulnerability of Gulf energy infrastructure.

Source: Kuwait Petroleum Corporation; Reuters.