The prospects for Washington-Tehran peace talks remained murky, amplifying questions over oil and gas supplies worldwide.

US President Donald Trump extended a ceasefire with Iran indefinitely, but kept the Strait of Hormuz blockade in place.

Oil traders said the war had already hit demand and could trigger a global recession. European countries, which usually refill gas reserves during warmer months, are struggling to do so, as summer prices have risen to winter levels.

A leading economist warned against “apocalyptic talk,” saying the disruption was small compared to the pandemic, and a European Central Bank policymaker told the Financial Times there was no rush to raise rates, but one oil boss said the shock was the worst in his 40-year career.