Donald Trump and sharemarkets appear relaxed about the effects of the war in Iran but the likelihood of significant global economic damage is increasing by the day.

The impact of the global energy shock sparked by the war is starting to hit economies. And there is more pain coming.

Stocks fell and oil rose as Iran threatened to halt talks over Lebanon tensions while Trump brushed off concerns.

Oil prices retreated around 4% from Monday’s highs as markets responded positively to US President Donald Trump’s reassuring comments that negotiations with Iran are progressing.

Donald Trump and sharemarkets appear relaxed about the effects of the war in Iran but the likelihood of significant global economic damage is increasing by the day.

0735 GMT - Oil prices climb 2% as hostilities in the Middle East escalated after the U.S. and Iran exchanged heavy fire. Meanwhile, diplomatic efforts to reopen the Strait of…