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Singapore Prime Minister Lawrence Wong warned that the Middle East conflict has grave implications not only for the region but for the entire world, saying the crisis is unfolding both as a military war and as a contest over critical supply routes, especially the Strait of Hormuz. He said Iran has significantly disrupted shipping through the strait, sharply reducing flows of oil, LNG, and other essential commodities, with broader consequences for supply chains and food production risks.

Wong added that the effects are already being felt through a sharp rise in oil prices, greater strain on supply chains, and growing pressure on economies, especially in Asia. He also said that while diplomatic efforts are underway, Singapore must be prepared for further escalation in the coming days and weeks, including the risk of other Iran-backed groups such as the Houthis opening new fronts in the conflict.

Possible Market Effect: The warning reinforces the view that any prolonged disruption in the Strait of Hormuz could keep oil prices elevated, lift global inflation pressure, and weigh on growth-sensitive assets as markets reprice energy and supply-chain risks.

Source: Prime Minister’s Office, Singapore.

The Philippines asked Iran to formally designate it as a “non-hostile country” and to ensure safe passage for Philippine-flagged vessels and oil shipments through the Strait of Hormuz. Philippine officials said Foreign Secretary Ma. Theresa Lazaro raised the issue in talks with Iran’s ambassador in Manila, with the request framed as essential for protecting Filipino seafarers and the country’s energy supply.

The issue then advanced a step further on April 2, when Manila said Iran had assured the safe, unhindered, and expeditious passage of Philippine-flagged vessels, energy cargoes, and Filipino seafarers through the strait after a call between Lazaro and Iranian Foreign Minister Abbas Araghchi. The Philippine foreign ministry said the assurance is important because the country imports most of its energy needs from the Middle East.

Possible Market Effect: The development offers some relief for Philippine energy-security concerns, but it also shows that oil-importing Asian economies remain highly exposed to shipping risks around the Strait of Hormuz. Any disruption or delay in these passage arrangements could quickly feed back into oil prices, freight costs, and regional inflation pressure.

Source: Philippine Department of Foreign Affairs; Reuters; Channel NewsAsia.

Thailand’s foreign minister said Tehran has asked countries seeking passage through the Strait of Hormuz to submit lists of vessels in advance, with approvals being handled on a case-by-case basis. The statement reinforces how traffic through the waterway remains tightly controlled, even where limited openings are being granted.

The minister said Thailand had already submitted the names of two vessels to Iranian authorities, and clearance was granted for one Bangchak tanker, which safely passed through the strait and headed back to Thailand. He also said no payment was requested for that transit, while another Thai-linked vessel remained awaiting approval. The move came after a Thai-flagged cargo ship was attacked in March, prompting Bangkok to seek stronger assurances for the safe passage of tankers and other ships.

Possible Market Effect: The case-by-case permit system keeps energy and shipping markets sensitive to headline risk. Even if some vessels are allowed through, uncertainty over delays and approvals can continue to support oil prices and freight costs.

Source: Reuters; Bernama.

U.S. President Donald Trump warned that if the current situation continues, Iran’s critical infrastructure could become a target, explicitly naming bridges and electric power plants as the next potential strike points. Reuters reported that Trump made the threat late on Thursday, April 2, writing on social media that the U.S. military “hasn't even started destroying what's left in Iran,” followed by: “Bridges next, then Electric Power Plants.”

Trump also said Iran’s leadership “knows what has to be done, and has to be done, FAST!”, reinforcing the message as direct pressure on Tehran to accept Washington’s terms. Reuters added that the warning came after Trump had already signaled in a televised speech on Wednesday that the war could escalate further, including possible strikes on Iran’s energy and oil infrastructure.

Source: Reuters.

Bahrain’s ambassador to the United Nations, Jamal Fares Al Rowaie, accused the Islamic Republic of what he described as “economic terrorism” and violations of international law, adding to the sharp rhetoric surrounding Gulf security and regional escalation. Bahraini official reporting shows Manama has been pressing the U.N. over Iranian attacks and threats, while Reuters reported Gulf states told the U.N. Human Rights Council that Iranian strikes on infrastructure posed an existential threat to regional and international security.

The accusation reflects a broader Gulf effort to frame attacks on infrastructure, energy facilities, airports, and ports not only as security threats, but also as actions with direct economic and legal consequences for the wider region.

Source: Bahrain News Agency; Reuters.

President Donald Trump said the United States will intensify military operations against Iran over the next two to three weeks, a message that sharply weakened earlier market hopes for a quick de-escalation. He also repeated that Tehran must accept a deal or face further strikes on energy infrastructure, while offering no clear signal that a ceasefire is close. The comments pushed risk-sensitive assets lower and weighed on Wall Street early in Thursday trading.

Later in the session, sentiment improved somewhat after Iranian state media said Tehran was developing a protocol with Oman to monitor vessel traffic through the Strait of Hormuz and set a toll mechanism for ships using the route. That development suggested Iran may be moving toward a managed traffic regime rather than a fully static blockade, although the United States has already described the toll idea as unacceptable.

The broader macro backdrop remains highly fragile. The Strait of Hormuz is a critical artery for global energy flows, and any prolonged disruption continues to threaten oil supply, inflation expectations, and global growth. Even with the late-session improvement in sentiment, markets are still caught between two opposing forces: rising risk of a wider war and tentative signs that some form of controlled maritime arrangement could emerge.

Possible Market Effect: Continued escalation rhetoric from Washington is likely to keep pressure on equities and support safe-haven demand, especially if investors fear a longer conflict. But any credible framework that improves vessel movement through Hormuz could reduce part of the oil risk premium and stabilize broader market sentiment.

Source: Reuters; Iranian state media as cited by Reuters; The Wall Street Journal.

The United Arab Emirates is reportedly preparing to help the United States and other allies reopen the Strait of Hormuz by force, while also lobbying for a U.N. Security Council resolution to authorize such an operation. According to The Wall Street Journal, Emirati diplomats are urging American, European, and Asian partners to form a coalition to restore shipping through the waterway, after Iran effectively blocked the route during the past month of conflict.

The report comes shortly after President Donald Trump signaled he wanted to wind down military operations against Iran in the coming weeks and suggested allies should either buy oil from the U.S. or take the lead in reopening the strait themselves. Because the Strait of Hormuz carries roughly one-fifth of global oil and gas flows, any prolonged closure remains a major threat to the Persian Gulf energy system and the broader global economy.

Possible Market Effect: Any credible move toward a multinational operation to reopen Hormuz could temporarily reduce the geopolitical risk premium in oil. But if the effort points to wider direct Gulf involvement in the war, markets may instead price in a higher risk of regional escalation before any shipping relief materializes.

Source: The Wall Street Journal; Reuters.

UAE President Sheikh Mohamed bin Zayed Al Nahyan held a phone call with Donald Trump, during which the two sides discussed developments in the region and their serious implications for regional and international peace and security. They also reviewed the impact of those developments on maritime security and the global economy, highlighting how regional tensions are increasingly tied to trade and shipping stability.

Source: WAM / Emirates News Agency; Qatar News Agency.

According to a Wall Street Journal report cited by Reuters, President Donald Trump and his aides concluded that a mission to reopen the Strait of Hormuz would likely stretch beyond his preferred four-to-six-week timeline for the campaign. The report said Trump instead chose to prioritize strikes on Iran’s navy and missile stockpiles, while seeking a drawdown in hostilities through diplomacy rather than expanding the war around the waterway.

The same report said Washington would lean on allies in Europe and the Persian Gulf to take the lead on the strait if diplomatic efforts fail. The shift suggests the U.S. objective may be moving from restoring immediate full shipping access toward degrading Iran’s military capabilities first and containing the conflict on a shorter timeline. Reuters noted it had not independently verified the Wall Street Journal’s account.

Possible Market Effect: A strategy that avoids a longer direct U.S. push to reopen Hormuz may initially support risk assets if markets read it as de-escalation. But if the strait remains constrained, energy markets could keep pricing a persistent supply-risk premium.

Source: The Wall Street Journal; Reuters.

Energy markets turned mixed after the recent oil spike, suggesting some consolidation rather than another broad leg higher. Brent crude slipped 0.18% to 107.20, WTI was nearly flat at 102.89, London gas oil fell 1.39%, natural gas dropped 1.39%, and heating oil declined 0.92%. In contrast, gasoline RBOB edged up 0.20% and carbon emissions gained 0.71%. The overall picture points to a market that is still elevated in price, but no longer moving in one direction across the whole energy complex.

Even with Brent having surged sharply in recent sessions, Capital Economics argued that markets do not appear overly alarmed yet about a full fiscal and inflation shock. That suggests investors still see the oil jump as serious, but not yet enough on its own to force an aggressive repricing of government reaction and central bank tightening across markets.

Possible market effect: If oil stabilizes around current levels, immediate pressure on global bond yields and rate expectations may ease somewhat. But if Brent pushes higher again, inflation-sensitive assets, rate markets, and risk sentiment could quickly come under fresh pressure.

Source: CME Group; ICE Futures Europe; ICE Endex; Capital Economics; Reuters.

Media reports suggest the White House is weighing increasingly complex military options in Iran, including plans tied to strategic assets and sensitive nuclear material, while additional U.S. forces continue arriving in the region. Reuters reported that thousands of U.S. troops have been sent to the Middle East as Washington expands its operational flexibility, and The Washington Post reported that the Pentagon has been preparing options that could include weeks of ground operations rather than a full-scale invasion.

At the same time, the military and diplomatic signals remain mixed. Reuters reported that President Donald Trump has continued to talk about negotiations with Iran while also warning of more strikes, and AP reported that seizing strategic Iranian assets would carry major risks for U.S. forces and could trigger broader retaliation. Tehran, for its part, has warned that any U.S. ground incursion would face direct military resistance.

Possible market effect: Any stronger sign that Washington is moving from air and naval pressure toward ground operations would likely add to upside pressure in oil, support safe-haven flows, and keep global equity sentiment fragile. A credible diplomatic breakthrough would likely reverse part of that risk premium, especially in energy and shipping-sensitive markets.

Source: Reuters; The Washington Post; AP.

President Donald Trump said negotiations with Iran were taking place both directly and indirectly and suggested that a deal could come soon, with Pakistan emerging as a possible venue for talks. Even so, the comments stopped short of confirming a breakthrough, and the diplomatic tone remains fragile rather than decisive.

The broader backdrop is still highly unstable. Fighting continued over the weekend, including Houthi attacks on Israel, while the United States was reported to be sending additional forces into the region. Iran, meanwhile, has pushed back against U.S. terms and has indicated that meaningful diplomacy depends on a halt in hostilities. Taken together, the situation points to cautious diplomatic optimism, but with oil, shipping, and global risk sentiment still exposed to major geopolitical shocks.

Source: Reuters; AP.