• US strikes on targets at Iran’s Kharg Island have raised fears of a wider escalation
• China says economy off to solid start but demand remains weak
• Trump is weighing a seizure of Iran’s critical oil depot on Kharg Island
• China industrial output beats forecasts as property slump deepens
• Strait of Hormuz ship traffic collapses to zero amid conflict, energy corridor shuts
• Chinese house price slump continues: -3.2% y/y in February (-3.1% prior)
• PBOC sets USD/ CNY reference rate for today at 6.9057 (vs. estimate at 6.9061)
• Global equity funds see largest outflows since December
• Japan warns ready to take decisive action on FX – ramps up verbal intervention on yen
• Oil lower to fill gap as Trump presses allies for Hormuz help
• Reserve Bank of New Zealand (RBNZ) says U.S. tariffs may ease inflation short term
• Trump on his knees. Begging for help from China, EU, UK, NATO on Hormuz.
• EU weighs naval response as Trump’s Strait of Hormuz disruption surges oil prices
• French President Emmanuel Macron spoke direct with Iranian President Masoud Pezeshkian
• U.S. and China hold talks ahead of Trump–Xi talks. Talk, talk, talk …. rinse, repeat.
• U.S. oil executives warn Trump energy crisis could worsen. Oil futures higher at the open.
• New Zealand electronic card retail spending rose in February from the previous month
• New Zealand services sector falls back into contraction in February
• Taiwan reports surge in Chinese military aircraft after unusual lull. China needling Trump
• There is a BIG BUT on this: US preparing multinational naval escorts for Strait of Hormuz
• India is kicking Trump’s ass on Iran war, getting tankers through Strait of Hormuz
• Weekend co-ordinated FX intervention warning – Japan, South Korea firm on FX volatility
• Monday open indicative forex prices, 16 March 2026
• Trump ask China and others for help in opening Strait of Hormuz

At a glance:

• Oil prices slipped Monday, paring early gap higher gains as markets assessed efforts to secure the Strait of Hormuz.

• Trump pressed allies including NATO members and China to help reopen the key energy corridor.

• The U.S. struck Iranian military targets on Kharg Island over the weekend, prompting threats of retaliation from Tehran.

• Japan and Australia signalled they will not send naval vessels to the region despite U.S. requests.

• Energy infrastructure incidents were reported in the UAE, including a drone strike near Fujairah and a fuel depot fire near Dubai airport.

• The dollar softened slightly at the start of the week, while FX markets remained volatile.

• USD/JPY traded choppily after Japan warned it is prepared to take decisive steps on currency volatility.

Oil prices eased on Monday, trimming early gap up gains as markets assessed geopolitical developments and diplomatic efforts aimed at restoring shipping through the Strait of Hormuz, a critical conduit for global oil and gas flows.

U.S. President Donald Trump said Washington is pressing other countries to help safeguard the strait and is currently in discussions with several nations about policing the waterway. The remarks came after Trump urged NATO allies and major energy importers, including China, to participate in U.S.-led efforts to reopen the corridor.

Trump said the United States remains in contact with Iran but expressed scepticism that Tehran is ready for meaningful negotiations. Iranian officials have pushed back strongly on that claim. Iran’s foreign minister told CBS there was little reason to engage in talks with Washington after the United States attacked Iranian targets while negotiations were still ongoing.

The conflict intensified over the weekend after the United States struck Iranian military infrastructure on Kharg Island. Trump later warned that additional strikes could target the island’s oil export facilities if attacks on shipping in the Strait of Hormuz continue. Kharg Island handles roughly 90% of Iran’s crude exports, making it a highly sensitive energy asset.

Tehran responded with threats of retaliation, warning it could target ports and other facilities in the region that it believes were used to support the strikes. The United Arab Emirates rejected those accusations, saying they reflected a “confused policy” and reaffirming its commitment to restraint.

Several incidents affecting regional energy infrastructure were also reported. A fire briefly halted operations at a major oil storage facility in Fujairah after what authorities said was an intercepted drone strike. Operations have since resumed. Separately, a fuel depot near Dubai International Airport was struck overnight, prompting a temporary suspension of flights before the situation was brought under control with no injuries reported.

Meanwhile, international support for U.S. efforts to secure the strait appeared mixed. Japan’s Prime Minister Sanae Takaichi said Tokyo currently has no plans to send naval vessels to the Middle East, though Japan will participate in coordinated releases of strategic oil reserves as part of an International Energy Agency initiative to stabilise markets. Australia also said it would not deploy naval ships to the area.

Separately, U.S. President Donald Trump is reportedly seeking to assemble a multinational naval coalition to help reopen shipping through the Strait of Hormuz, according to people familiar with the discussions cited by Axios.

In currencies, the U.S. dollar softened slightly at the start of the week. EUR/USD rebounded from around a seven-month low, while USD/JPY traded choppily after Japanese Finance Minister Satsuki Katayama warned authorities are prepared to take decisive steps if foreign-exchange volatility intensifies.

The Australian and New Zealand dollars recovered modestly from earlier losses ahead of the Reserve Bank of Australia policy meeting on Tuesday, where markets widely expect another rate hike.

In data releases, China’s latest activity showed industrial output, retail sales and fixed-asset investment all beating expectations, but the property sector remained firmly in contraction. The ongoing housing slump continues to weigh heavily on consumer confidence, with new home prices falling for a 33rd straight month and second-hand home prices declining for a 34th consecutive month.

This article was written by Eamonn Sheridan at investinglive.com.