Paris (France) (AFP) – Here are the latest economic events in the Middle East war on Thursday:
– **Markets in turmoil**
European stocks slid further as surging oil and gas prices fuelled concerns that the war will drive inflation and weigh on economic growth. Brent crude oil soared almost six percent to over $113 a barrel on fresh worries about energy supplies, while European gas prices jumped by 28 percent. Frankfurt’s DAX index tumbled 3.0 percent, London’s FTSE 100 plunged 2.9 percent, and the Paris CAC 40 was down 2.3 percent. Gold and silver prices shed more than six percent and 13 percent, respectively, as rising inflation fears dampened expectations for near-term interest rate cuts and heightened fears of poor growth.
– **Attacks on Gulf energy infrastructure**
Qatar reported “extensive” damage on Thursday to the site of the world’s largest liquefied natural gas (LNG) facility following Iranian strikes, sparking fears for global energy supplies. Qatar is one of the world’s top liquefied natural gas producers, alongside the United States, Australia, and Russia, and its Ras Laffan facility is the world’s largest LNG hub. Two Kuwaiti oil refineries were also hit, as well as the Saudi oil refinery Samref in the industrial zone of the Red Sea port of Yanbu.
– **Six nations signal ready for Hormuz mission**
Six Western allies, including Britain, France, Germany, and Japan, said in a joint statement Thursday they were ready “to contribute to appropriate efforts to ensure safe passage through the Strait of Hormuz.”
– **ECB chops 2026 growth forecast**
The European Central Bank cut its growth forecast and raised its inflation forecast for this year as it warned of the energy price shock from the Mideast war. ECB staff now see eurozone GDP growth at 0.9 percent in 2026, down from a December forecast of 1.2 percent. They raised inflation projections to 2.6 percent for the year, up from 1.9 percent in their December forecast.
– **Germany considers energy windfall tax**
Germany is considering the introduction of a windfall tax on hefty energy-sector profits after oil prices surged due to the Middle East war, a finance ministry source told AFP. German Finance Minister Lars Klingbeil is mulling the introduction of a special tax “to skim off excessive crisis profits” earned due to high energy prices, the ministry source said.
– **US ponders unsanctioning Iranian crude**
US Treasury Secretary Scott Bessent said Washington might “unsanction” Iranian oil that is already being shipped, as energy prices soar due to the war. Bessent’s comments to Fox Business came as oil and gas prices made a renewed surge after Iran hit the world’s biggest liquefied natural gas (LNG) facility in Qatar and threatened to destroy the region’s energy infrastructure. He added the US government could also release more oil from its strategic reserves.
– **Pacific fuel shortages**
Leaders of Samoa and Tonga have appealed for help over fears of possible fuel shortages and escalating costs caused by the war. Samoan Prime Minister La’aulialemalietoa Leuatea Schmidt said Wednesday he had asked New Zealand leader Christopher Luxon if it was possible to divert fuel to his country in case of crisis. Tongan Prime Minister Lord Fakafanua, meanwhile, said New Zealand and Australia were “sharing intelligence” to help his country best prepare for shortages.
– **Italy reduces fuel prices**
Italy adopted late Wednesday measures to reduce fuel prices in response to spiking prices due to the war. “We are reducing the price of fuel by around 0.25 euros (28 US cents) per litre for everyone,” along with a tax credit for truckers, Prime Minister Giorgia Meloni wrote on social media. France does not plan to cut fuel taxes, the government’s spokeswoman said Thursday.
© 2024 AFP
