China's official data shows industrial production and investment grew strongly in the first two months of 2026, but this growth is now overshadowed by the escalating Iran war. While retail and infrastructure sectors performed better than expected, surging oil prices and disruptions to international trade have darkened the outlook for Chinese exports. Beijing is now cautiously delaying economic stimulus measures to assess the impact of the Middle East crisis.

Major New Zealand banks have warned that the Iran war will push the country's inflation to 3.6% in the second quarter, exceeding the central bank's 1-3% target range. As a result, investors are now pricing in a possible interest rate hike as early as May. This comes just weeks after the central bank had forecast inflation at 2.3% for the end of the year.

Donald Trump urged other countries to step in to secure the Strait of Hormuz, stressing that the United States alone would not protect the vital waterway. He said he was in talks with about seven countries to help reopen the route, citing China and other countries' dependence on the region's oil. The US president warned that an upcoming summit with Xi Jinping would be postponed if Beijing did not cooperate, and described the future of NATO as "very bad."

US President Donald Trump said his country does not know whether Ayatollah Mojtaba Khamenei, Iran's new leader, is still alive. Meanwhile, US allies have shown reluctance to respond to Washington's request for help in escorting ships through the Strait of Hormuz. According to some reports, US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi are in contact via the Signal messaging app. Separately, Iran linked maritime traffic in the Strait of Hormuz has reached its highest level since the start of the war.