(AFP) – Here are the latest economic events in the Middle East war on Wednesday:
– **Iran prepared to ‘destroy’ world economy**
Iran said it was ready for a long war of attrition that would “destroy” the world economy. The US and Israel “must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy,” Ali Fadavi, adviser to the Revolutionary Guards’ commander-in-chief, told state television.
– **Oil reserves tapped**
The International Energy Agency said its 32 member countries would unlock 400 million barrels of oil from their reserves — the biggest such release ever — to ease the impact of the war.
– **G7 rejects lifting Russian sanctions**
Group of Seven nations rejected easing punitive measures against Russia over its invasion of Ukraine as the Middle East war wreaks havoc on global oil markets, France’s President Emmanuel Macron said. “This situation in no way justifies lifting the sanctions that exist against Russia,” he said after a video call with other G7 leaders to discuss the war’s economic fallout.
– **Oil prices resurge**
World oil prices rose, with international benchmark Brent North Sea crude jumping more than five percent in early trade before gains eased. Oil and gas prices had tumbled Tuesday after US President Donald Trump said: “I think the war is very complete, pretty much.”
– **Ships hit**
Iran’s Revolutionary Guard said it had struck the Liberian-flagged container ship Express Rome and the Thai bulk carrier Mayuree Naree because they had entered the Strait of Hormuz “after ignoring the warnings.”
– **World stocks mixed**
World stock markets traded mixed following gains the previous day as uncertainty over the war persisted.
– **Drones hit Oman port**
Drones struck fuel tanks at Oman’s Salalah port on Wednesday, state media reported.
– **Citi, Deloitte, PwC clear offices in Gulf**
Several major international businesses closed or evacuated offices in Gulf countries after Iran threatened US- and Israel-linked economic targets and centres in the Middle East. US finance group Citi and British consultancy Deloitte evacuated offices in Dubai’s financial centre, while PwC, another British consultancy, closed offices in Saudi Arabia, Qatar, the UAE, and Kuwait.
– **Fuel queues**
Tanker drivers in Pakistan said they were facing long waits at depots due to a shortage of fuel, as the government played down fears of another rise in prices over the war.
– **Drones target Saudi oil field**
Saudi Arabia’s defence ministry said on X that it had intercepted seven drones heading towards the Shaybah oil field in the southeast of the country.
– **ECB inflation vow**
European Central Bank chief Christine Lagarde said that “everything necessary” would be done to “keep inflation under control.”
– **Hormuz confusion**
The US energy secretary said in a video on X that the US Navy had escorted an oil tanker through the Strait of Hormuz — but the post was deleted within minutes. The White House subsequently stated that the US Navy had not escorted any tankers through the strategic Gulf passage. Iran’s Revolutionary Guards said no US Navy vessel has “dared” to approach the strait.
– **UAE refinery**
The region’s biggest single-site oil refinery, at Ruwais in the United Arab Emirates, was closed as a precaution after a drone attack on the industrial complex that houses it caused a fire, a source familiar with the situation told AFP. A driver working at the complex, who asked not to be named, told AFP they saw “bursts of fire rising from the complex, with loud sounds like explosions.”
– **EU strengthens Azerbaijan ties**
European Council President Antonio Costa said the European Union is looking to cooperate more closely with energy-rich Azerbaijan as European governments fear the war could further disrupt energy supplies and push prices even higher.
© 2024 AFP
