Tensions in Middle East Send Markets Reeling Amid Iran, Houthi Standoff

Global markets were affected by escalating tensions in the Middle East on Thursday. Iran's condition for reopening the Strait of Hormuz is based on the 'Islamabad understanding', according to a source close to the Iranian negotiating team, as reported by Al-Akhbar.

Saudi Arabia has requested a two-week truce from the Houthis, which will allow discussions to address the humanitarian situation, sources told Al Mayadeen. China reportedly presses Iran to help rein in the Houthis after Saudi appeal, according to Reuters citing sources.

Crude prices initially firmed up but have since fallen by 1.1% and 0.9% respectively for Brent crude. The US Federal Reserve raised interest rates by 25bps to 3.75-4.00%, as expected, with a unanimous decision.