Stock markets in Europe have steadied after two days of punishing falls but oil prices continued to climb higher as the US-Israel war with Iran threatens to spark an energy supply crunch and experts warned over ongoing volatility.

Wall Street futures are mixed while oil prices are stabilizing after Trump said the U.S. Navy could escort tankers through the Strait of Hormuz, where about a fifth of the world’s oil passes.

The UK stock market opened slightly higher on Wednesday despite continuing energy price volatility over fears the US-Israel war with Iran may drag on. In London, the FTSE 100 index edged ahead alongside positive trading in Germany and France,

Oil prices fell on Wednesday, erasing ​earlier gains, after a report that Iranian operatives sought talks with the U.S. to end the ‌war on Iran, which is disrupting Middle East energy flows.

The index had been down as much as 2.5% in the morning because of worries that the war may do more sustained damage to the economy than feared.

On Tuesday, oil prices rose again and raised more alarms. The price for a barrel of Brent crude, the international standard, briefly leaped above $84.

South Korea’s stock market has suffered its steepest fall in history amid the widening fallout of the United States-Israeli war on Iran. The benchmark KOSPI index plummeted 12.06 percent on Wednesday,

A sell-off for stocks is slamming into Wall Street Tuesday after wrapping around the world, as oil prices leap even higher with worries that the widening war with Iran may do more sustained damage to the economy than feared.