Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
Iran turns back ships
Iran’s Revolutionary Guards said Friday that they had turned back three ships trying to transit the Strait of Hormuz, adding the route was closed to vessels travelling to and from ports linked to countries aiding the US-Israeli attacks. Energy market intelligence firm Kpler said Friday it had identified two container ships belonging to Chinese firm COSCO that had attempted to leave the Gulf by crossing the narrow waterway, but had turned around.
Kuwait says port damaged
Kuwait’s main commercial port was damaged in a drone attack, authorities said, as Iran pressed on with its campaign in the Gulf in retaliation for US-Israeli strikes. The Shuwaikh port was targeted at dawn “by enemy drones; preliminary reports revealed material damage but no human casualties,” the Kuwait port authority said in a statement on X.
Oil rises
Oil prices rose Friday even as US President Donald Trump pushed back a deadline for Iran to reopen the Strait of Hormuz. Brent crude was up 1.7 percent at 1100 GMT, selling at $109.85 a barrel, while West Texas Intermediate was also up 1.7 percent at $96.08. Brent was up almost 50 percent since the war began, while WTI has risen around 40 percent. The main stock markets in Europe were down around one percent.
Ukraine, Saudi deal
Ukraine and Saudi Arabia signed an air defense agreement during President Volodymyr Zelensky’s visit to the kingdom, two senior officials told AFP on Friday. Details of the accord were not announced. Kyiv has sought to leverage its expertise in downing Russian drones to help Gulf nations, which are being attacked with the same kind of Iranian-designed Shahed drones that Russia fires on Ukraine.
‘Significant slowdown’
Spain’s economy could face a “significant slowdown” due to the Middle East war, the Bank of Spain said on Friday. “The central scenario anticipates a significant slowdown in the pace of activity, shaped by an international context dominated by the conflict in the Middle East,” it said, warning of potential “episodes of financial market instability.” Separately, Spain’s annual inflation jumped to 3.3 percent in March from 2.3 percent the previous month, driven by higher costs for gasoline and heating oil, preliminary data showed Friday.
Iran all in on crypto
Iran has witnessed massive cryptocurrency flows since the start of the Middle East conflict. Experts say they are being used to circumvent sanctions placed on Iran’s Revolutionary Guards as well as a financial safe haven by civilians hit by soaring inflation. In an unusually large movement, more than $10 million worth of cryptocurrencies left Iranian exchange platforms between February 28—the first day of Israeli-US airstrikes—and March 2, according to data analytics firm Chainalysis.
Japan to ease coal restrictions
Japan’s government plans to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch caused by the Middle East war, an official told AFP. Power suppliers have been required to keep the operating rate of coal-fired thermal power stations that emit large amounts of carbon dioxide at or below 50 percent. However, the government now intends to allow full operation of older, less efficient coal-fired plants for a year from the new fiscal year starting in April, said Takahide Soeda, an industry ministry official.
Vietnam waives green tax
Vietnam temporarily waived an environmental tax on fuel to cut soaring petrol prices by more than a quarter, the trade ministry said. The environmental protection tax rate on gasoline, diesel, and aviation fuel would be slashed to zero from Friday to April 15, the ministry said.
Overnight queues
Ethiopians said Friday they slept in their cars in hours-long queues for petrol as shortages caused by the Middle East war began to take their toll. The Horn of Africa country is particularly vulnerable as it imports all its petrol, primarily from the Gulf.
‘At scale’
The World Bank said it was prepared to provide immediate financial assistance to emerging market countries hit by the economic fallout of the conflict, stating it was “ready to respond at scale.” The Washington-based multilateral lender said a number of its clients in affected countries had already reached out as the crisis began to impact commodity prices and logistics.
© 2024 AFP
