Global stock markets fell again after US President Donald Trump’s extension of a deadline for Iran to reopen the Strait of Hormuz failed to calm oil prices or government bonds, reports Reuters.

Trump’s postponement of the deadline, after which he has said Iran will face attacks on its energy infrastructure, came just after Wall Street stocks closed out their biggest one-day fall since the war began.

Markets appeared sceptical about the chances of a deal between the two sides being struck, however, with oil prices rising once again and government bonds sliding.

The pan-European STOXX 600 index dropped 0.7 per cent in early trading after sliding 1.1pc on Thursday.

MSCI’s index of Asian shares excluding Japan fell 0.6pc overnight.

Futures for the US S&P 500 gave up earlier gains and were last flat, after tumbling 1.7pc in the previous session.

The tech-focused Nasdaq Composite dropped 2.4pc, leaving the index down nearly 11pc from its record-high close in late October. Nasdaq futures were also flat.