Starmer and Trump discuss Strait of Hormuz

Global markets sold off on Monday, March 23, 2026, as rising security risks in the Middle East pushed energy prices higher and weighed on Asian equities.

The International Energy Agency (IEA) warned that the situation could develop into the most serious energy shock in decades, adding urgency to diplomatic and policy discussions.

Security incidents drive risk pricing

The market move followed a fast-moving regional escalation that included reports of explosions in Tehran that were widely attributed to Israeli strikes on Iranian infrastructure.

In the United Arab Emirates, authorities said an Indian national suffered shrapnel injuries after a ballistic missile was intercepted near Abu Dhabi.

Elsewhere in the Gulf, Bahrain, Kuwait, and Saudi Arabia reported incoming Iranian fire or drone attacks, underscoring the breadth of the security risk being priced by investors.

Why the Strait of Hormuz is central

Investor focus quickly narrowed to the Strait of Hormuz, a key shipping route for global oil and gas flows, because any interruption could tighten supply and lift prices.

Strikes and interceptions over the weekend heightened concern about the safety of transit, even though it remains unclear whether shipping will face actual disruption.

The perceived threat to passage helped drive crude higher and pressured risk assets, particularly in economies that depend heavily on imported energy.

Diplomacy and crisis management steps

Political leaders moved quickly to address the immediate risk. UK Prime Minister Sir Keir Starmer held a 20-minute call with U.S. President Donald Trump on Sunday night that was described as constructive and included discussion of restoring safe transit through the strait.

After the call, Trump issued a 48-hour ultimatum for Iran to guarantee passage through the waterway.

In the UK, Starmer is scheduled to chair an emergency Cobra meeting on Monday focused on potential economic consequences.

IEA weighs strategic stock releases

IEA Executive Director Fatih Birol said the agency is consulting member countries about possible additional releases from strategic petroleum reserves to help steady crude prices amid uncertainty.

The consultations follow an earlier IEA-reported release of 400 million barrels on March 11, though the agency has not disclosed the size, timing, or participating members for any further action.

What remains uncertain for the global economy

Key unknowns include whether the strait will see real shipping interruptions, how long elevated security conditions persist, and whether attacks spread further across the Gulf.

For markets, the main channels are higher energy costs and weaker risk appetite. Sustained oil strength can complicate inflation dynamics for central banks, raise costs for transport, industry, and petrochemicals, and shift trade balances for both importers and exporters.

With policy options and diplomacy moving in parallel, investors are likely to remain sensitive to any confirmed change in shipping conditions and to any concrete details on coordinated stock releases.