Trump Cites Economic Risks as He Defends Iran Agreement

At the conclusion of the G7 summit in France, US President Donald Trump defended the agreement with Iran and said he did not want to risk the economic consequences of a continuing war in the Middle East. "If you kept this going, that could have happened", he said.

Trump also said he did not want to allow a situation similar to that during President Herbert Hoover's term, recalling the stock market crash of October 1929, which led to losses worth billions of dollars and subsequently to the Great Depression.

The war, which began with US and Israeli attacks on Iran on 28 February and subsequently escalated into a broader regional conflict, has significantly affected global markets. The conflict drove up energy prices, reignited inflationary pressures and sparked concerns about food supply in developing countries.

Economists say the peace agreement is positive news for the global economy but warn of high risks should the agreement fail and fighting escalate again.

Experts estimate it may take several months for trade flows to return to normal, while analysts in the energy and maritime transport sectors warn that a full restoration of fuel supplies for shipping could take up to a year.

(Reuters, Max)