Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
– **Stocks rise, oil slides**
Stocks rallied and oil slumped as investors reacted to US President Donald Trump saying that the Middle East war might be over within weeks, alongside comments by his Iranian counterpart that Tehran had “the necessary will” to end the conflict. International benchmark Brent North Sea crude fell 1.9 percent to $102.01 a barrel, while the main US oil contract WTI dropped 1.2 percent to $100.18 a barrel. Wall Street’s main indices built on strong gains made Tuesday, and European and Asian markets finished higher.
– **UK meeting on Hormuz shipping**
Britain will on Thursday hold a meeting of about 35 countries to discuss how to reopen the strategic Strait of Hormuz, which has been crippled by the Middle East war, Prime Minister Keir Starmer announced. The meeting will “assess all viable diplomatic and political measures that we can take to restore freedom of navigation, guarantee the safety of trapped ships and seafarers, and resume the movement of vital commodities,” Starmer stated.
– **Germany outlook dims**
Leading economic institutes cut their growth forecasts for Germany on Wednesday, warning that surging inflation resulting from the Middle East war and rising energy costs would hit Europe’s top economy hard. The German economy should grow by 0.6 percent in 2026, down from a September forecast of 1.3 percent, while inflation is predicted to stand at 2.8 percent, up from 2.0 percent.
– **Bank of England warning**
The Bank of England on Wednesday said the Middle East war had caused “a substantial negative supply shock to the global economy,” increasing risks to the financial system. Following a surge in oil prices that is set to push up overall inflation, the BoE noted that the fallout would also weigh on economic growth and tighten financial conditions, such as restricted lending by banks.
– **India fuel hike**
India’s oil ministry announced that domestic jet fuel prices would rise as the Middle East war pushed up energy costs, but assured that it had cushioned airlines from an expected 100-percent jump.
– **Kuwait airport hit**
Kuwait’s international airport came under an Iranian drone attack that led to “a large fire” at fuel tanks, although no casualties were reported, according to the civil aviation authority. In further signs of strain in the Gulf state, the National Bank of Kuwait stated it would close its headquarters for two days along with another branch, as Iran continues daily strikes on the Gulf.
– **Save fuel, Australians**
Australian Prime Minister Anthony Albanese urged his countrymen to switch to public transport and save fuel for rural communities and essential services. He remarked, “Farmers and truckies, small businesses and families are doing it tough. And the reality is, the economic shocks caused by this war will be with us for months,” during a national address.
– **Cambodia farmers suffer**
The price of diesel in Cambodia spiked to double the level at the start of the Middle East war following the latest government increase. Farmers are particularly hard hit, as they rely on the fuel for tractors and water pumps.
– **Tanker struck off Qatar**
A tanker has been hit by a projectile off the coast of Qatar’s capital Doha, according to a British maritime security agency, which reported damage but no casualties.
– **Desalination plant hit**
Strikes have knocked out a desalination plant on Qeshm Island in the Strait of Hormuz, Iranian media reported without specifying when the attack occurred. “One of the desalination plants on Qeshm Island was targeted…and is now completely out of service, as it is not possible to repair it in the short term,” stated health ministry official Mohsen Farhadi, as quoted by the ISNA news agency.
© 2024 AFP
