US

Middle East war: global economic fallout

  • Iraq's oil export revenues in March dropped more than 70 percent from February, an Iraqi official said Thursday, after the Middle East war disrupted the oil industry.
  • Here are the latest economic events in the Middle East war: - Oil surges - Oil prices jumped after US President Donald Trump dashed hopes for a quick end to the Middle East conflict, reiterating that US forces would hammer Iran for another two to three weeks and bomb it "back to the Stone Ages", sending oil prices upwards once again.
  • Iraq's oil export revenues in March dropped more than 70 percent from February, an Iraqi official said Thursday, after the Middle East war disrupted the oil industry.
Here are the latest economic events in the Middle East war:

Oil surges

Oil prices jumped after US President Donald Trump dashed hopes for a quick end to the Middle East conflict, reiterating that US forces would hammer Iran for another two to three weeks and bomb it "back to the Stone Ages", sending oil prices upwards once again.
The main US oil contract, West Texas Intermediate, jumped 11.4 percent to $111.54 per barrel while international benchmark Brent North Sea crude rose 7.8 percent to $109.03 per barrel.
Trump's failure to flesh out an exit plan initially sent stock markets tumbling -- with all major Asia exchanges closing well down -- but European and US indexes recovered some of their losses ahead of a three-day weekend.

Iran says attacked US, Israeli industries

Iran said its latest wave of attacks on Thursday had targeted the UAE, Bahrain and Israel after US-Israeli strikes hit the country's two largest steel plants. 
"In response to attacks on Iranian steel industries, the Islamic Revolutionary Guard Corps launched a new wave of attacks this morning," the military's central command, Khatam Al-Anbiya said in a statement carried by state TV.
"American steel industries in Abu Dhabi, American aluminium industries in Bahrain, and the Rafael arms factories of the Zionist regime" were among a number of targets, it said.

UK-led coalition demands Strait of Hormuz be opened

A UK-led meeting of around 40 countries on the Strait of Hormuz crisis wrapped up Thursday with a demand for the "immediate and unconditional" reopening of the vital shipping route, but no immediate breakthrough.
Separately, the secretary-general of the Gulf Cooperation Council (GCC) called Thursday for the UN Security Council to authorize the use of force to protect the Strait of Hormuz from Iranian attacks.

Iran drafts peacetime Strait of Hormuz protocol

Iran said on Thursday it was drafting a peacetime protocol that would supervise maritime traffic through the Strait of Hormuz with Oman, state media reported.
Deputy Foreign Minister Kazem Gharibabadi told Russia's Sputnik state media that the protocol would apply after the ongoing war with the United States and Israel had ended, setting basic rules to manage ship movements, the IRNA news agency said.

Pakistan, Bangladesh hike energy prices

Pakistan's government on Thursday drastically raised fuel prices in response to spiking global energy prices caused by the Iran war, the country's petroleum minister said in a press conference.
The new prices mark an increase of 42.7 percent in petrol prices and 54.9 percent in the price of diesel.
Separately, Bangladesh hiked prices of liquefied petroleum gas used for cooking and compressed natural gas in some cars by 29 percent.

Banks tighten security in Paris

Citigroup and Goldman Sachs stepped up security in Paris, telling staff they can work from home, after authorities thwarted an attack against another US financial institution that French prosecutors said might have been linked to a pro-Iran group.  

Iraq exports oil through Syria

Iraq has begun exporting crude using tanker trucks through Syria, its oil ministry said. 
Iraq is hugely dependent on its oil exports, accounting for some 90 percent of its budget revenues and until the Middle East war all but shut the Strait of Hormuz, it exported the majority of its oil through the strategic waterway.
Iraq's oil export revenues in March dropped more than 70 percent from February, an Iraqi official said Thursday, after the Middle East war disrupted the oil industry.
The oil ministry said it "has begun exporting oil by tanker truck through neighbouring Syria" and that Syria would "ensure the safe passage" of the oil.

Iran to allow Philippine oil shipments

The Philippines said Iran has pledged to allow safe passage for shipments of oil to the import-dependent archipelago through the Strait of Hormuz.
President Ferdinand Marcos last week declared a state of national energy emergency, saying "nothing was off the table" as the country of 116 million tries to navigate a global fuel crisis driven by the Middle East war.

Czechs, Romania cut taxes

The Czech Republic and Romania said they would cut the excise tax on diesel, joining a host of other countries reacting to a price surge driven by the Middle East war.
The Czech government also put a limit on the profit margins of fuel distributors.  
burs-aha/pnb/dw

Global Edition

Oil surges, stocks mixed as Trump dashes hopes of quick end of war

  • “It's as if the equity market is a bigger believer that we're closer to the off-ramp than the oil market," said Art Hogan of B. Riley Wealth Management.
  • Oil prices surged Thursday after US President Donald Trump threatened more heavy strikes on Iran, while global equity markets reacted indecisively to the latest developments in the conflict.
  • “It's as if the equity market is a bigger believer that we're closer to the off-ramp than the oil market," said Art Hogan of B. Riley Wealth Management.
Oil prices surged Thursday after US President Donald Trump threatened more heavy strikes on Iran, while global equity markets reacted indecisively to the latest developments in the conflict.
In a prime-time address Wednesday night, Trump warned that more bombing could take Iran "back to the Stone Ages" but offered no solution on the reopening the Strait of Hormuz, a key shipping lane for the world's oil and gas.
Oil prices shot higher, lifting both major benchmarks to about $110 a barrel by the end of the day.
"Trump's much-anticipated address delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran," said Deutsche Bank managing director Jim Reid. "There was no signal of the US seeking an imminent off-ramp out of the war."
US stocks began the session sharply lower, but later regained their footing, with two of the three major indices ending narrowly positive.
“It's as if the equity market is a bigger believer that we're closer to the off-ramp than the oil market," said Art Hogan of B. Riley Wealth Management.
After being down more than one percent, European markets closed mixed, with London higher and Paris and Frankfurt slightly lower.
Signs of de-escalation had buoyed markets in recent sessions, but Trump's speech dashed those hopes.
As time passes, markets are treating Trump's statements with greater skepticism, said Dave Grecsek, managing director at Aspiriant Wealth Management.
"Initially there was a lot more weight attached to his comments, whether this was related to tariffs or what happened in Venezuela or in Iran," he said. 
But "at some point, the markets are going to start to question the veracity of some of his statements," he added.
London finished 0.6 percent higher, boosted by oil companies BP and Shell rising almost three percent. 
Paris dropped about half a percent, even as oil giant TotalEnergies was up almost three percent on reports it made a $1 billion profit in March trading petroleum products.
Most markets in Europe and the United States are closed Friday for Good Friday.
Earlier in the day, Tokyo closed down more than two percent, and Hong Kong and Shanghai also fell. 
World Bank Managing Director Paschal Donohoe said he was fearful about the global economic impact of the crisis.
"We are extremely concerned regarding the effect that this will have on inflation, on jobs and on food security," he told AFP as the World Bank partners with the International Monetary Fund and International Energy Agency to coordinate aid responses.

Key figures at around 2015 GMT

Brent North Sea Crude: UP 7.8 percent at $109.03 a barrel
West Texas Intermediate: UP 11.4 percent at $111.54 a barrel
New York - Dow: DOWN 0.1 percent at 46,504.67 (close)  
New York - S&P 500: UP 0.1 percent at 6,582.69 (close) 
New York - Nasdaq Composite: UP 0,2 percent at 21,879.18 (close)
London - FTSE 100: UP 0.7 percent at 10,436.29 (close) 
Paris - CAC 40: DOWN 0.2 percent at 7,962.39 (close)
Frankfurt - DAX: DOWN 0.6 percent at 23,168.08 (close)
Tokyo - Nikkei 225: DOWN 2.4 percent at 52,463.27 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 25,116.53 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,919.29 (close)
Euro/dollar: DOWN at $1.1535 from $1.1589 on Wednesday
Pound/dollar: DOWN at $1.3224 from $1.3305
Dollar/yen: UP at 159.63 from 158.82 yen
Euro/pound: UP at 87.22 pence from 87.10 pence
bur-jmb/mjf/sst

space

NASA gives Artemis crew green light to head towards Moon

BY CHARLOTTE CAUSIT WITH CHRIS LEFKOW IN WASHINGTON

  • It is also the inaugural crewed flight of SLS, NASA's new lunar rocket.
  • NASA gave the four Artemis astronauts circling Earth the green light on Thursday to head for the Moon and carry out the first crewed lunar flyby in more than 50 years.
  • It is also the inaugural crewed flight of SLS, NASA's new lunar rocket.
NASA gave the four Artemis astronauts circling Earth the green light on Thursday to head for the Moon and carry out the first crewed lunar flyby in more than 50 years.
NASA Flight Director Jeff Radigan told the astronauts the mission management team had approved firing up the engine of their Orion capsule to send the spacecraft on a trajectory towards the Moon.
The 5min and 49sec burn is scheduled to take place at 7:49 pm Eastern Time (2349 GMT) and send the astronauts out of Earth orbit to begin the three-day voyage toward the Moon, the first since 1972.
"Flight controllers will closely monitor engine performance, guidance, and navigation data throughout the maneuver to ensure Orion remains precisely aligned for the outbound journey," NASA said.
The enormous orange-and-white Space Launch System (SLS) rocket carrying the Orion capsule blasted off flawlessly from Kennedy Space Center in Florida on Wednesday for the long-anticipated journey around the Moon.
The astronauts -- Americans Reid Wiseman, Victor Glover and Christina Koch and Canadian Jeremy Hansen -- spent their first hours in space performing checks and troubleshooting minor problems -- including a communications issue and a malfunctioning toilet.
Before getting a few hours of sleep, they ignited the spacecraft's main engine to place it in a high Earth orbit, the US space agency said.
"Artemis II astronauts are doing great," NASA chief Jared Isaacman said in a post on X. "The Orion spacecraft is performing well in an impressive elliptical orbit."
Orion is to loop around the Moon as part of the 10-day Artemis 2 mission aimed at paving the way for a Moon landing in 2028.

'Great spirits'

Before their rest period, the astronauts performed various checks to ensure the reliability and safety of a spacecraft that has never carried humans before.
Among the problems they identified was a "controller issue with the toilet when they spun it up," said Amit Kshatriya, NASA's associate administrator.
Isaacman, the NASA chief, said a communications problem had been resolved and the astronauts were "in great spirits."
The mission marks a series of historic accomplishments: sending the first person of color, the first woman and the first non-American on a lunar mission.
If all proceeds smoothly, the astronauts will set a record by venturing farther from Earth than any human before -- more than 250,000 miles.
It is also the inaugural crewed flight of SLS, NASA's new lunar rocket.
SLS is designed to allow the United States to repeatedly return to the Moon with the goal of establishing a permanent base that will offer a platform for further exploration.
It was meant to take off as early as February after years of delays and massive cost overruns.
But repeated setbacks stalled it and even necessitated rolling the rocket back to its hangar for repairs.

Compete with China

The current era of American lunar investment has frequently been portrayed as an effort to compete with China, which aims to land humans on the Moon by 2030.
During a post-launch briefing, Isaacman said competition was "a great way to mobilize the resources of a nation."
"Competition can be a good thing," he said. "And we certainly have competition now."
The Artemis program has come under pressure from Trump, who has pushed its pace with the hope that boots will hit the lunar surface before his second term ends in early 2029.
But the projected date of 2028 for a landing has raised eyebrows among some experts, in part because Washington is relying heavily on the private sector's technological headway.
cl/dw 

trade

Trump orders new pharma tariff, reshapes metal duties

BY BEIYI SEOW

  • Britain meanwhile has secured a deal allowing UK-made medicines tariff-free access to the United States for three years as part of a broader pact, the US Trade Representative's office said.
  • US President Donald Trump on Thursday ordered new tariffs on certain medicines, alongside an overhaul of metal duties, doubling down on his trade agenda a year after unleashing trade wars on virtually all partners.
  • Britain meanwhile has secured a deal allowing UK-made medicines tariff-free access to the United States for three years as part of a broader pact, the US Trade Representative's office said.
US President Donald Trump on Thursday ordered new tariffs on certain medicines, alongside an overhaul of metal duties, doubling down on his trade agenda a year after unleashing trade wars on virtually all partners.
The latest pair of orders he signed pile pressure on pharmaceutical companies to manufacture more in the United States, while separately targeting firms that officials accuse of "artificially manipulating" metals prices.
Finished products containing substantial amounts of steel, aluminum and copper will also face a lower 25-percent tariff on their full value instead of being targeted for the amount of metals they contain, a move to simplify an onerous system for firms.
It is not immediately clear how these would affect consumer prices, but a senior US official told reporters they did not expect to see any effect on affordability.
The moves come on the anniversary of what Trump had dubbed "Liberation Day," when he announced varying tariff rates on goods from dozens of economies last year, roiling financial markets and snarling supply chains.
Although the Supreme Court struck down these global tariffs this February, Trump has been working to reinstate duties using different authorities.
His aim of "Liberation Day" was the rebirth of American industry, bringing an influx of jobs, revenue and an investment boom -- although critics argue that these have largely not taken place.
Making good on his threat last fall, one of Trump's Thursday orders imposes a 100-percent tariff on patented pharmaceuticals made abroad unless countries struck trade deals to secure lower rates, or companies commit to building plants in the United States.
Large companies will have 120 days to commit to "reshoring plans" before the steep duty kicks in, while smaller companies have a 180-day buffer, a senior US official told reporters. 
"We expect the lion's share of the world's patented pharmaceuticals to be building in America," the official said.
Those who commit to building manufacturing plants -- to be completed by the end of Trump's second presidency -- will face a 20-percent tariff instead.
The European Union, Japan, South Korea and Switzerland will be excluded from this plan and face a 15-percent pharma duty, due to trade deals they earlier struck with Washington.
Britain meanwhile has secured a deal allowing UK-made medicines tariff-free access to the United States for three years as part of a broader pact, the US Trade Representative's office said.
Meanwhile, drug companies that reach "Most Favored Nation" pricing deals with the Trump administration, while also building plants in the United States, can also be exempt from the sharp pharma tariff.
Generic pharmaceutical products are not subject to tariffs, and this will be reassessed in a year's time, said a White House fact sheet.

Affordability hit?

The second order Trump signed reshapes his 50-percent tariffs on steel, aluminum and copper, pushing importers to pay the duty based on prices that American buyers are facing.
It is set to take effect 12:01am Eastern Time on Monday, a White House official told AFP.
The senior administration official charged that "foreign countries were artificially manipulating" prices of imported metals in order to pay a lower tariff.
The same proclamation called for finished products made with more than 15 percent of steel, aluminum and copper will face a 25-percent tariff on their full value, rather than being targeted based on their metal content.
"It's a simplification and a fairness issue," the official said.
Asked about cost of living concerns, which have flared ahead of midterm elections this year, the official maintained that this should not impact affordability for households.
"These will not have impact on the price of the good on the shelf," the official insisted.
bys/dw

Iran

Pakistan hikes petrol, diesel prices due to Middle East war

  • Several Asian countries have hiked fuel prices or implemented other measures to address the crisis sparked by the war on Iran.
  • Pakistan's government on Thursday drastically raised fuel prices in response to spiking global energy prices caused by the Iran war, the country's petroleum minister said in a press conference.
  • Several Asian countries have hiked fuel prices or implemented other measures to address the crisis sparked by the war on Iran.
Pakistan's government on Thursday drastically raised fuel prices in response to spiking global energy prices caused by the Iran war, the country's petroleum minister said in a press conference.
The new prices mark an increase of 42.7 percent in petrol prices and 54.9 percent in the price of diesel.
"The decision made today is that as per international markets, after the increase in the petrol prices the new price will be 458.40 rupees ($1.64 per litre) which will be effective from tomorrow (Friday)," said the minister, Ali Pervaiz Malik.
As for diesel, "which has great importance for our workers and public transport," the price was set at 520.35 Pakistani rupees ($1.86) per litre, he said.
"The government has done its best, looking at its budget, to give people blanket protection" but was "forced" to pass along the price increase "because resources are limited and we do not currently see indications of the end of this war", Pervaiz said.
The US-Israel war on Iran, launched on February 28, has plunged the Middle East into conflict, with Iranian retaliatory strikes hitting targets across the Gulf and virtually freezing shipping in the Strait of Hormuz.
The key waterway normally sees a fifth of the world's energy supplies pass through it, much of it bound for Asia. 
Pakistan is heavily reliant on such oil and gas, and had earlier raised prices by 20 percent on March 6, about a week into the war.
The government has unveiled a raft of austerity measures designed to save fuel, including moving many government offices to a four-day work week, extending school holidays and moving some classes online.
Pakistan is classified as a lower-middle-income country, with roughly 25 percent of its 240 million population living in poverty, as per World Bank data.
Several Asian countries have hiked fuel prices or implemented other measures to address the crisis sparked by the war on Iran.
On Thursday, Bangladesh hiked prices of liquefied petroleum gas used for cooking and compressed natural gas used in some cars by 29 percent.
Earlier this week, the International Monetary Fund warned that vulnerable economies, such as Pakistan, did not just face pressure from higher energy prices, but from supply chain snarls as well.
"Parts of the Middle East, Africa, Asia-Pacific, and Latin America face the added strain of higher food and fertilizer prices and tighter financial conditions," the IMF said in a post on its website.
aha/sst

US

UK-led Hormuz talks demand 'immediate' reopening of Hormuz

BY PETER HUTCHISON AND HELEN ROWE

  • "To that effect, partners today called for the immediate and unconditional reopening of the Strait and respect for the fundamental principles of freedom of navigation and the law of the sea," she added.
  • A UK-led meeting of some 40 countries on the strait of Hormuz crisis wrapped up Thursday with a demand for the "immediate and unconditional" reopening of the vital shipping route, but no immediate breakthrough.
  • "To that effect, partners today called for the immediate and unconditional reopening of the Strait and respect for the fundamental principles of freedom of navigation and the law of the sea," she added.
A UK-led meeting of some 40 countries on the strait of Hormuz crisis wrapped up Thursday with a demand for the "immediate and unconditional" reopening of the vital shipping route, but no immediate breakthrough.
"Iran is trying to hold the global economy hostage in the Strait of Hormuz. They must not prevail," British foreign minister Yvette Cooper said in a statement.
"To that effect, partners today called for the immediate and unconditional reopening of the Strait and respect for the fundamental principles of freedom of navigation and the law of the sea," she added.
The strait has been virtually closed since the US-Israeli war against Iran started on February 28, impacting global supplies of important commodities including oil, liquid natural gas, and fertiliser.
That has led to a sharp rise in energy prices.
The foreign ministers and representatives who joined the call discussed a range of areas of "possible collective, coordinated, action," Cooper added.
This could include increased diplomatic pressure, including through the UN, as well as possible sanctions, she said.
The Gulf Cooperation Council (GCC) meanwhile called Thursday for the UN Security Council to authorise the use of force to protect the key waterway.
Bahrain has proposed a draft resolution that would greenlight states to use "all necessary means" to assure free transit through the Strait of Hormuz. 
However, the measure has divided the 15-member Security Council, with Russia, China and France -- who each hold veto privileges -- all voicing strong objections.
Italy's Foreign Minister Antonio Tajanialso, who joined the virtual talks, called for a "humanitarian corridor" for fertiliser and other essentials through the strait to avoid a food disaster in Africa.
Cooper earlier slammed Iran's "recklessness" over the strait as she kicked off the virtual meeting.
She said Iran's blockade of the waterway was "hitting our global economic security".
Around a fifth of the world's oil and liquefied natural gas passes through the strait in peacetime.
A total of 37 countries have signed a statement, first published last month, expressing "readiness to contribute to appropriate efforts to ensure safe passage through" the shipping lane.
Britain, France, Germany, Italy, Japan and the Netherlands are among those to have signed it.
The United States, China, and most Middle Eastern countries have not, according to a list provided by the UK government.

'Unrealistic'

A spokesperson for the French foreign ministry said securing the Strait of Hormuz could "only take place once the intense phase of the bombing is over".
French President Emmanuel Macron, speaking on a visit to South Korea, said a military operation to liberate the Strait of Hormuz was "unrealistic", while lamenting Trump's differing daily statements on the Iran war and NATO.
"There are those who advocate for the liberation of the Strait of Hormuz by force through a military operation, a position sometimes expressed by the United States," Macron said.
"I say sometimes because it has varied, it is never the option we have chosen and we consider it unrealistic," he said.
The virtual meeting hosted by Britain came after Trump urged oil-importing nations to show "courage" and seize the narrow strait.
"The countries of the world that ... receive oil through the Hormuz Strait must take care of that passage," Trump said in a prime-time address late Wednesday.
"Just take it, protect it, use it for yourselves," he added.
Trump has said he would consider a ceasefire only when Hormuz is "free and clear".
Many countries have however insisted any operation to protect seafarers using the strait could only come after a ceasefire.
"We are also convening military planners to look at how we marshal our collective defensive military capabilities, including looking at issues such as de-mining," Cooper told Thursday's meeting.
The channel normally sees around 120 daily transits, according to shipping industry intelligence site Lloyd's List.
But since March 1, commodities carriers have made just 225 crossings, according to maritime intelligence firm Kpler, a 94-percent decrease on peacetime.
pdh-har/jkb/yad

US

Grain, steel, fertiliser blocked by Hormuz closure: data

  • - Bulk commodities: down 93% - Within dry goods, "bulk commodities" exports include raw materials such as limestone for cement-making, sulphur for fertilisers and industrial chemicals, and gypsum for construction, agriculture and manufacturing.
  • Besides oil and gas, Iran's blockade of the Strait of Hormuz has choked off shipments of crucial goods and raw materials to world markets.
  • - Bulk commodities: down 93% - Within dry goods, "bulk commodities" exports include raw materials such as limestone for cement-making, sulphur for fertilisers and industrial chemicals, and gypsum for construction, agriculture and manufacturing.
Besides oil and gas, Iran's blockade of the Strait of Hormuz has choked off shipments of crucial goods and raw materials to world markets.
Overall volumes of dry bulk goods fell from 7.5 million tonnes in February to 1.3 million tonnes in March, according to data from maritime intelligence firm AXSMarine -- an 83-percent decline.
Here are five measures of the impact on commodities based on data from the firm, since the war started with US and Israeli attacks on Iran on February 28.

Bulk commodities: down 93%

Within dry goods, "bulk commodities" exports include raw materials such as limestone for cement-making, sulphur for fertilisers and industrial chemicals, and gypsum for construction, agriculture and manufacturing.
Overall shipments of this class of commodities through the strait fell 93 percent in March compared with February, from nearly five million tonnes to just 326,000.

Fertilisers: -92% 

Fertilisers such as urea are crucial for crop production, with exports through Hormuz typically heading to Brazil, China, India and Africa.
Fertiliser shipments through the passage fell 92 percent from over a million tonnes in February to just 82,000 in March.

Iron ore: -65%

Iron ore is a crucial ingredient for making the steel that goes into everything from buildings to vehicles to machinery.
Exports of iron ore through the strait fell by 65 percent in March from the month before, from over 530,000 tonnes to 186,000.

Steel: -93%

Shipments of steel fell 93 percent from nearly 162,000 tonnes to 11,000.

Grain imports: -92%

Meanwhile grain shipments westbound through the strait into the Gulf plunged 92 percent from 2.3 million tonnes to 196,000.
AXSMarine told AFP that a significant share of the goods shipped in March were unknown cargos due to disruptions and manipulation of ships' signals in the conflict zone.
rlp/jj/gv

Global Edition

Oil climbs, stocks slip as Trump dashes hopes of quick end of war

  • "Trump didn't offer a clear path to a relatively quick resolution to the Iran war or a reopening of the Strait of Hormuz," said Charles Schwab analyst Joe Mazzola.
  • Oil surged and stocks fell on Thursday after Donald Trump threatened more heavy strikes on Iran and offered no solution to reopening the key Strait of Hormuz.
  • "Trump didn't offer a clear path to a relatively quick resolution to the Iran war or a reopening of the Strait of Hormuz," said Charles Schwab analyst Joe Mazzola.
Oil surged and stocks fell on Thursday after Donald Trump threatened more heavy strikes on Iran and offered no solution to reopening the key Strait of Hormuz.
But stocks clawed back some of their losses and oil receeded from its highs ahead of a three-day weekend that will allow investors to catch their breaths as they await for new developments in the Middle East war.  
Investors had initially found little solace in the US president's address to the nation, in which he again urged countries dependent on the waterway for energy supplies to reopen it themselves.
"Trump didn't offer a clear path to a relatively quick resolution to the Iran war or a reopening of the Strait of Hormuz," said Charles Schwab analyst Joe Mazzola.
After being down more than one percent, European markets closed mixed with London higher, and Paris and Frankfurt slightly lower.  
New York shares had opened sharply lower but by late morning had clawed back most of their losses.  
Signs of de-escalation had buoyed markets in recent sessions, but Trump's late Wednesday televised speech dashed those hopes.
"Trump's much anticipated address delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran," said Deutsche Bank managing director Jim Reid. "There was no signal of the US seeking an imminent offramp out of the war."
International oil benchmark, Brent North Sea crude, which had fallen below $100 a barrel ahead of Trump's speech, went on to rally around eight percent to above $109 per barrel, but had retreated to about $106 by late afternoon in Europe.
London was one of the few markets to rise, finishing 0.6 percent higher, boosted by oil companies BP and Shell rising almost three percent. 
Paris dropped about half a percent, even as oil giant TotalEnergies was up almost three percent on reports it made a one billion dollar profit in March trading petroleum products.
Most markets in Europe and the United States are closed Friday for Good Friday.
Earlier in the day, Tokyo closed down more than two percent and Hong Kong and Shanghai also fell. 
World Bank Managing Director Paschal Donohoe said he was fearful about the global economic impact of the crisis.
"We are extremely concerned regarding the effect that this will have on inflation, on jobs and on food security," he told AFP as the Bank partners with the International Monetary Fund and International Energy Agency to coordinate aid responses.

Key figures at around 1550 GMT

Brent North Sea Crude: UP 6.3 percent at $107.47 a barrel
West Texas Intermediate: UP 10.2 percent at $110.36 a barrel
New York - Dow: DOWN 0.3 percent at 46,422.74 points  
New York - S&P 500: DOWN 0.2 percent at 6,562.98 
New York - Nasdaq Composite: DOWN 0,2 percent at 21,790.97 
London - FTSE 100: UP 0.7 percent at 10,436.29 (close) 
Paris - CAC 40: DOWN 0.2 percent at 7,962.39 (close)
Frankfurt - DAX: DOWN 0.6 percent at 23,168.08 (close)
Tokyo - Nikkei 225: DOWN 2.4 percent at 52,463.27 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 25,116.53 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,919.29 (close)
Euro/dollar: DOWN at $1.1549 from $1.1586 on Wednesday
Pound/dollar: DOWN at $1.3240 from $1.3305
Dollar/yen: UP at 159.30 from 158.88 yen
Euro/pound: UP at 87.27 pence from 87.08 pence
dan-ajb/gv/giv

tariff

US trade deficit widens less than forecast as tariff turmoil persists

BY BEIYI SEOW

  • Analysts from the conservative-leaning Tax Foundation estimated this week that US tariff policy changed more than 50 times under Trump, adding that tariff revenue through December 2025 accounted for just 4.9 percent of tax receipts for the calendar year.
  • The US trade deficit widened in February but less than analysts expected, government data showed Thursday, a year since President Donald Trump unleashed sweeping tariffs on virtually all trading partners.
  • Analysts from the conservative-leaning Tax Foundation estimated this week that US tariff policy changed more than 50 times under Trump, adding that tariff revenue through December 2025 accounted for just 4.9 percent of tax receipts for the calendar year.
The US trade deficit widened in February but less than analysts expected, government data showed Thursday, a year since President Donald Trump unleashed sweeping tariffs on virtually all trading partners.
One year on, turmoil over Trump's tariff agenda looks set to continue roiling trade flows in the world's biggest economy, with ongoing investigations into products and countries threatening new waves of levies.
In February, the overall trade gap expanded 4.9 percent to $57.3 billion as both imports and exports climbed, said the Commerce Department.
But the mild shift is yet to fully reflect the Supreme Court's ruling late in that month to strike down a wide swath of Trump's duties -- including those he announced on April 2 last year on what he dubbed "Liberation Day."
Despite Trump's vows that his new policies would herald the rebirth of American industry, bringing in jobs, revenue and an investment boom, critics say that these have not taken place.
Analysts from the conservative-leaning Tax Foundation estimated this week that US tariff policy changed more than 50 times under Trump, adding that tariff revenue through December 2025 accounted for just 4.9 percent of tax receipts for the calendar year.
Data also "does not support claims of a large investment surge," the Tax Foundation said.
But Trump's tariffs have influenced trade flows, with US goods imports from China notably pulling back in 2025.

Lack of confidence

A Pew Research Center survey released Wednesday said nearly six in 10 US adults are not too -- or not at all -- confident that Trump can make good decisions about US trade policy.
And 63 percent expressed little or no confidence in his handling of tariff policy.
While the high court decision is unlikely to have impacted February's trade data much, Trump has since turned to different authorities to impose new, temporary 10-percent duties on imports.
US officials have launched probes into dozens of countries with an eye on reinstating more lasting tariffs, foreshadowing further trade uncertainty in the months ahead.
The high court's ruling "could definitely impact the data going forward and has opened another window for a front-running wave in imports" as companies try to take advantage of the current lower tariff levels, said KPMG senior economist Meagan Schoenberger.
For now, "higher imports continue to be driven by the tech sector and the AI data center buildout, with most of the increases in computers and semiconductors," she told AFP.
"Most of those items have been exempted from tariffs," she said.
Still in place as well are Trump's sector-specific tariffs on products like steel, aluminum and autos, which have been weighing on businesses. 
The Trump administration has ongoing investigations into other sectors that could lead to more tariff announcements.
February's deficit was slightly less than the $62 billion expected in surveys of economists by Dow Jones Newswires and The Wall Street Journal.
Exports climbed 4.2 percent to $314.8 billion, boosted by goods such as nonmonetary gold and natural gas.
US imports jumped by 4.3 percent to $372.1 billion, on the back of products like computers and semiconductors.
bys/acb

banking

US banks in Paris tighten security, order remote work over pro-Iran threat

  • Citing a person familiar with the matter, The Financial Times said that Goldman Sachs had also told employees in Paris they can work from home.
  • Citigroup and Goldman Sachs stepped up security in Paris on Thursday, telling staff they can work from home, after authorities thwarted an attack against another US financial institution that French prosecutors said might have been linked to a pro-Iran group.
  • Citing a person familiar with the matter, The Financial Times said that Goldman Sachs had also told employees in Paris they can work from home.
Citigroup and Goldman Sachs stepped up security in Paris on Thursday, telling staff they can work from home, after authorities thwarted an attack against another US financial institution that French prosecutors said might have been linked to a pro-Iran group.
According to a French police source, Goldman Sachs in London received an email from the US authorities warning that a pro-Iranian group was threatening to attack US banks with explosive devices.
The security measures come more than a month after US-Israeli strikes on Iran sparked a regional war and unleashed global economic turmoil.
The French government and security services have said that while they do not believe France itself is a target, US and Israeli interests on its soil might potentially be singled out.
At the weekend French authorities thwarted an attack on a Bank of America branch in Paris.
Citigroup said its employees in Paris and Frankfurt were working remotely "as a precautionary measure".
"The safety of our employees is our number one priority, and we are taking the necessary measures to keep our employees safe," a spokeswoman told AFP.
Police have also deployed surveillance outside the Paris offices of US bank Goldman Sachs near the Champs-Elysees, the police source said.
Citing a person familiar with the matter, The Financial Times said that Goldman Sachs had also told employees in Paris they can work from home.
Goldman Sachs declined to comment when reached by AFP.
French authorities have charged four people -- a young adult and three minors -- after police foiled an attempt to set off an explosive device outside a Bank of America branch in Paris before dawn on Saturday.
France's National Counterterrorism Prosecutor's Office says the incident could be linked to a little-known Islamist group with possible links to Iran, though no firm link has yet been established.
The Harakat Ashab al-Yamin al-Islamiya (HAYI) group, meaning The Islamic Movement of the People of the Right Hand, has claimed responsibility for attacks targeting Jewish communities in the United Kingdom, Belgium and the Netherlands.
etr-as/ah/yad

tariff

US trade deficit widens less than forecast as tariff turmoil persists

BY BEIYI SEOW

  • The figures released Thursday come after the US Supreme Court in late February struck down a wide swath of Trump's levies -- including those that he announced on April 2 last year on what he dubbed "Liberation Day."
  • The US trade deficit widened in February but less than analysts expected, government data showed Thursday, a year since President Donald Trump unleashed sweeping tariffs on virtually all trading partners.
  • The figures released Thursday come after the US Supreme Court in late February struck down a wide swath of Trump's levies -- including those that he announced on April 2 last year on what he dubbed "Liberation Day."
The US trade deficit widened in February but less than analysts expected, government data showed Thursday, a year since President Donald Trump unleashed sweeping tariffs on virtually all trading partners.
The overall gap expanded 4.9 percent to $57.3 billion as both imports and exports climbed, said the Commerce Department.
Turmoil over Trump's tariff agenda, however, looks set to continue roiling trade flows in the world's biggest economy.
The figures released Thursday come after the US Supreme Court in late February struck down a wide swath of Trump's levies -- including those that he announced on April 2 last year on what he dubbed "Liberation Day."
Meanwhile, a Pew Research Center survey released Wednesday said nearly six in 10 US adults are not too -- or not at all -- confident that Trump can make good decisions about US trade policy.
And 63 percent expressed little or no confidence in his handling of tariff policy.
While the court decision is unlikely to have impacted February data much, Trump has since turned to different authorities to impose new, temporary 10-percent duties on imports.
US officials have launched probes into dozens of countries with an eye on reinstating more lasting tariffs, foreshadowing further trade uncertainty in the months ahead.
The high court's ruling "could definitely impact the data going forward and has opened another window for a front-running wave in imports" as companies try to take advantage of the current lower tariff levels, said KPMG senior economist Meagan Schoenberger.
For now, "higher imports continue to be driven by the tech sector and the AI data center buildout, with most of the increases in computers and semiconductors," she told AFP.
"Most of those items have been exempted from tariffs," she said.
Still in place as well are Trump's sector-specific tariffs on products like steel, aluminum and autos, which have been weighing on businesses. 
The Trump administration has ongoing investigations into other sectors that could lead to more tariff announcements.
February's deficit was slightly less than the $62 billion expected in surveys of economists by Dow Jones Newswires and The Wall Street Journal.
Exports climbed 4.2 percent to $314.8 billion, boosted by goods such as nonmonetary gold and natural gas.
US imports jumped by 4.3 percent to $372.1 billion, on the back of products like computers and semiconductors.
bys/acb

Israel

Which countries' ships are hit by Hormuz crisis?

  • - Greece - After the UAE, next on the list is Greece: its companies have at least 75 commodity vessels that have been in the strait since the beginning of the war -- around 12 percent of the total. 
  • Shipping companies from Greece, the UAE and China are most affected by the closure of the Strait of Hormuz, according to data from Bloomberg and marine traffic organisations.
  • - Greece - After the UAE, next on the list is Greece: its companies have at least 75 commodity vessels that have been in the strait since the beginning of the war -- around 12 percent of the total. 
Shipping companies from Greece, the UAE and China are most affected by the closure of the Strait of Hormuz, according to data from Bloomberg and marine traffic organisations.
Around 670 commodity vessels sent signals from west of the Strait of Hormuz over the last day, with companies from the nearby United Arab Emirates accounting for 120 -- around 18 percent of the total.
The war erupted on February 28 when the US and Israel launched attacks against Iran, sparking retaliatory strikes across the region -- with Tehran's forces targeting the crucial waterway.
The figures may understate the true totals as some vessels may have turned off their transponders.

Greece

After the UAE, next on the list is Greece: its companies have at least 75 commodity vessels that have been in the strait since the beginning of the war -- around 12 percent of the total. 
Of those vessels, around 30 are oil or gas tankers, according to an analysis of Bloomberg data, which collates information from various organisations.

China 

Asian countries have been hit hard by the shutdown.
Chinese companies account for 74 commodity vessels in the area, 25 of which are oil and gas tankers. The remainder are dry bulk carriers such as container ships.

Japan

Japanese companies have at least 23 oil and gas vessels and 16 dry carriers in the strait.
Added to that, 25 vessels from Hong Kong  -- 13 oil and gas, 12 dry -- are also in the region.

India

India-based companies have 24 oil and gas vessels in the area.
Singapore and South Korea companies have also been affected, with 29 and 22 commodity vessels respectively stuck since the war began.
Vietnam has three large gas carriers in the area.

Oil and gas

Around 50 Very Large Crude Carriers (VLCC) appear to be stuck, along with 11 Very Large Gas Carriers.
South Korea accounts for seven of the VLCCs, China and Japan companies each account for six, and Greece for five.

Iran-linked vessels 

Of the 225 crossings by commodity carriers since the start of the war, more than 40 were by Iranian vessels, according to data from maritime intelligence firm Kpler.
A further 60 were by vessels that are not flagged or directly owned by Iran but are sanctioned by the US under its Iran program.

Greek, Chinese crossings

Some 35 crossings have been made by Greek-owned vessels, including eight by one company, Dynacom Tankers Management Ltd.
At least 20 Chinese-affiliated vessels and 13 Indian-linked vessels have made the journey.
Some vessels appeared to have crossed the strait via a vetting system in which Iran grants safe passage to certain vessels from friendly countries.

US ships targeted

Hundreds of vessels seem to be waiting out the war, given the sky-high insurance costs and danger to life and cargo.
Of the vessels in the area reporting attacks or suspicious activity, around a half were linked to Europe or the United States, according to the UK Maritime Trade Operations and publicly-available ownership information.
jwp/rlp/cw

semiconductors

Nexperia's China unit nears fully local production of chips: company sources

BY LUNA LIN

  • Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
  • The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia will soon be able to produce semiconductors locally within China, according to two company sources.
  • Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia will soon be able to produce semiconductors locally within China, according to two company sources.
Nexperia is at the centre of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company.
The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages.
Local production would allow Nexperia's domestic arm, Nexperia China, to bypass restrictions in place since October on the supply of silicon wafers -- etched with tiny components to make chips -- from Nexperia factories in Europe to China.
"From a supply chain perspective, we have completed the shift from global to domestic production in China," a Nexperia China representative told potential clients at a company event in Beijing on Wednesday.
The representative assured attendees that the domestically made chips would meet the same stringent quality standards as previous products.
"Because the Dutch side cut our wafer supply, we have to use domestically made wafers. In the future, all products will be full local production," a source close to the matter told AFP, who asked not to be named as they were not authorised to speak to media.
Nexperia's China unit could achieve full localisation for most of its chips in the second half of 2026, including ones widely used in car production, he said.
Nexperia referred AFP to previous public statements including an open letter published in November, saying it "continues to seek a constructive collaboration with Nexperia's entities in China and has been requesting an open dialogue to find a path forward to restoring the regular supply of goods".
"Any attempts (Nexperia's Dutch headquarters) has made to engage in a constructive and meaningful dialogue with the management in China since then have been unsuccessful."

Tug of war

The Nexperia saga kicked off in September 2025 when the Dutch government invoked a Cold War-era law to effectively seize control of Nexperia, which is based in the Dutch city of Nijmegen.
Once part of Dutch electronics giant Philips, it was acquired in 2018 by China's Wingtech.
Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
Nexperia microchips are mainly found in cars, but also industrial components, as well as consumer appliances and electronics, such as refrigerators.
Prior to the seizure, Nexperia typically produced wafers in Europe and then sent them for packaging into finished chips in China and Southeast Asia.
Beijing retaliated to the seizure in October with export controls on products made by Nexperia in China -- a blow to the company's business -- but has since re-allowed exports for civilian use.
The resumption of shipments was part of a trade deal agreed by Chinese President Xi Jinping and his US counterpart Donald Trump after talks in South Korea last October, the Wall Street Journal reported at the time.
Nexperia said in late October that it had suspended direct wafer supplies to its Chinese unit. The suspension remains in place.
The latest development comes just weeks after Nexperia China announced it had started producing several types of chips using domestically made 12-inch wafers.
Similar chips made by its Chinese-owned Dutch parent use less advanced 8-inch wafers from Germany.
Nexperia China's packaging factory in the manufacturing hub of Dongguan is currently operating at about 60-70 percent of its original production capacity using stockpiles, client-supplied wafers and alternative domestic suppliers, the source close to the matter told AFP.
The company is on track to resume up to 90 percent production capacity for its popular products in the second quarter of this year, he said.
The China unit's main production now centers on a packaging factory in Dongguan and a wafer factory in Shanghai, supplemented by contracted external suppliers for additional packaging and wafer capacity.
"Nexperia China's future focus will be on these two factories (in Dongguan and Shanghai)," the source said.
"They will serve as the main production centres for our products."
ll/kaf/abs

US

Strait of Hormuz shipping blockade update

  • The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies". - 46% sanctioned ships - Since the war started, 46 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
  • Here are the latest key facts about impacts from the blockage of the Strait of Hormuz, a crucial shipping route virtually paralysed by the Middle East war.
  • The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies". - 46% sanctioned ships - Since the war started, 46 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
Here are the latest key facts about impacts from the blockage of the Strait of Hormuz, a crucial shipping route virtually paralysed by the Middle East war.
Around a fifth of global crude oil and liquefied natural gas (LNG) passes through the waterway in peacetime.
The war erupted on February 28 when the United States and Israel began bombing Iran, prompting Tehran to retaliate with strikes across the region and restrict access to the strait.

27 ships targeted

In total 27 commercial ships, including 13 tankers, have been attacked or reported incidents since March 1 in the Gulf, the Strait of Hormuz, or the Gulf of Oman, according to British marine security agency UK Maritime Trade Operations (UKMTO).
In the latest incident, a tanker leased to Qatar's state-owned energy company was struck by an Iranian missile in the Gulf country's territorial waters, officials there said Wednesday.

11 sea workers killed

Since the conflict began, at least 11 seafarers or dock workers have died in incidents in the region, according to the International Maritime Organization (IMO).
The UN agency updated that tally Tuesday, after formally confirming the deaths of three seafarers aboard the Thai bulk carrier the Mayuree Naree, which was attacked while transiting the strait on March 11.

Handful of crossings

Just a handful of vessels crossed the strait on Wednesday and Thursday, according to maritime intelligence firm Kpler.
Since March 1, commodities carriers have made 225 crossings, according to Kpler data, a 94-percent decrease on peacetime.
Of these, 139 were by oil tankers and gas carriers and most were travelling east out of the strait.
Six out of 10 crossings involved ships coming from or heading to Iran.
The other main countries involved in recent days were the United Arab Emirates, India, China and Saudi Arabia.
The channel in peacetime sees around 120 daily transits, according to shipping industry intelligence site Lloyd's List.

2,000 ships in Gulf

Bloomberg data showed Thursday that 2,163 vessels sent transponder signals in the Gulf west of the Strait of Hormuz over the past day -- including 308 oil and gas vessels.

Iran-approved route

Recent crossings appeared to have mainly used a route apparently approved by Iran around Larak Island just off the country's coast.
Analyst Bridget Diakun of leading shipping journal Lloyd's List estimated 63 ships had used it in the past two weeks.
She said there had been at least two cases of shippers paying Iran for permission to pass, while others may have been gaining passage through "diplomatic negotiations".
The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies".

46% sanctioned ships

Since the war started, 46 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
Of the crossings by oil and gas tankers, 64 percent were by vessels under sanctions.
rlp/ach 

semiconductors

Nexperia's China unit nears fully local production of chips: company sources

BY LUNA LIN

  • Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
  • The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia will soon be able to produce semiconductors locally within China, according to two company sources.
  • Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia will soon be able to produce semiconductors locally within China, according to two company sources.
Nexperia is at the centre of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company.
The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages.
Local production would allow Nexperia's domestic arm, Nexperia China, to bypass restrictions in place since October on the supply of silicon wafers -- etched with tiny components to make chips -- from Nexperia factories in Europe to China.
"From a supply chain perspective, we have completed the shift from global to domestic production in China," a Nexperia China representative told potential clients at a company event in Beijing on Wednesday.
The representative assured attendees that the domestically made chips would meet the same stringent quality standards as previous products.
"Because the Dutch side cut our wafer supply, we have to use domestically made wafers. In the future, all products will be full local production," a source close to the matter told AFP, who asked not to be named as they were not authorised to speak to media.
Nexperia's China unit could achieve full localisation for most of its chips in the second half of 2026, including ones widely used in car production, he said.
AFP contacted both Nexperia and Nexperia China for official comment but had no immediate response.

Tug of war

The Nexperia saga kicked off in September 2025 when the Dutch government invoked a Cold War-era law to effectively seize control of Nexperia, which is based in the Dutch city of Nijmegen.
Once part of Dutch electronics giant Philips, it was acquired in 2018 by China's Wingtech.
Nexperia's Dutch headquarters has since cut off access to its office systems for employees in China, causing "significant disruption" to operations, the Chinese unit said in a statement last month.
Nexperia microchips are mainly found in cars, but also industrial components, as well as consumer appliances and electronics, such as refrigerators.
Prior to the seizure, Nexperia typically produced wafers in Europe and then sent them for packaging into finished chips in China and Southeast Asia.
Beijing retaliated to the seizure in October with export controls on products made by Nexperia in China -- a blow to the company's business -- but has since re-allowed exports for civilian use.
The resumption of shipments was part of a trade deal agreed by Chinese President Xi Jinping and his US counterpart Donald Trump after talks in South Korea last October, the Wall Street Journal reported at the time.
Nexperia said in late October that it had suspended direct wafer supplies to its Chinese unit. The suspension remains in place.
The latest development comes just weeks after Nexperia China announced it had started producing several types of chips using domestically made 12-inch wafers.
Similar chips made by its Chinese-owned Dutch parent use less advanced 8-inch wafers from Germany.
Nexperia China's packaging factory in the manufacturing hub of Dongguan is currently operating at about 60-70 percent of its original production capacity using stockpiles, client-supplied wafers and alternative domestic suppliers, the source close to the matter told AFP.
The company is on track to resume up to 90 percent production capacity for its popular products in the second quarter of this year, he said.
The China unit's main production now centers on a packaging factory in Dongguan and a wafer factory in Shanghai, supplemented by contracted external suppliers for additional packaging and wafer capacity.
"Nexperia China's future focus will be on these two factories (in Dongguan and Shanghai)," the source said.
"They will serve as the main production centres for our products."
ll/kaf/abs

politics

India's says defence exports hit 'all-time high' of $4 bn

  • "This big jump... in defence exports reflects the growing global trust in India's indigenous capabilities and advanced manufacturing strength," Singh said, adding that it had hit an "all-time high" in the fiscal year 2025-26 of 38,424 billion rupees ($4.15 billion).
  • India's defence exports "skyrocketed" to an all-time high of more than $4 billion in the last fiscal year, as it looks to boost its arms manufacturing sector, the government said Thursday.
  • "This big jump... in defence exports reflects the growing global trust in India's indigenous capabilities and advanced manufacturing strength," Singh said, adding that it had hit an "all-time high" in the fiscal year 2025-26 of 38,424 billion rupees ($4.15 billion).
India's defence exports "skyrocketed" to an all-time high of more than $4 billion in the last fiscal year, as it looks to boost its arms manufacturing sector, the government said Thursday.
The figures mark a rise of more than 60 percent from 2024, the defence ministry said, and provide a shot in the arm for the South Asian country, which is determined to recast itself as a major producer and exporter of weapons.
"India is marching ahead towards becoming a global defence manufacturing hub," the ministry quoted Defence Minister Rajnath Singh as saying.
"This big jump... in defence exports reflects the growing global trust in India's indigenous capabilities and advanced manufacturing strength," Singh said, adding that it had hit an "all-time high" in the fiscal year 2025-26 of 38,424 billion rupees ($4.15 billion).
Government defence companies produced nearly 55 percent of the exports, with the rest made by private companies.
"This milestone showcases the power of a collaborative and self-reliant defence ecosystem," Singh said.
India exports defence equipment to more than 100 countries, with the United States, France and Armenia among the top customers, according to the defence ministry.
Shipments range from missiles, boats and artillery to radar systems, rocket launchers and electronic components.
However, the country is still primarily a buyer, not a seller, and remains globally a minor player in exports. 
New Delhi earlier this year announced a record $85 billion boost for its defence sector. 
The spending hike came after a four-day conflict with arch-rival Pakistan in May that killed at least 70 people, and saw both sides make extensive use of drones as well as intense missile and artillery barrages.
But India's arms purchases still make up around eight percent of all imports globally, according to the Stockholm International Peace Research Institute.
ash/pjm/dan

US

Middle East war: global economic fallout

  • Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800 kilometres (500 miles) by 60 yuan ($8.70), and 120 yuan for longer flights.
  • Here are the latest economic events in the Middle East war: - China fuel surcharges - Several Chinese airlines, including national carrier Air China, said they will raise their fuel surcharges on domestic flights from Sunday.
  • Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800 kilometres (500 miles) by 60 yuan ($8.70), and 120 yuan for longer flights.
Here are the latest economic events in the Middle East war:

China fuel surcharges

Several Chinese airlines, including national carrier Air China, said they will raise their fuel surcharges on domestic flights from Sunday.
Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800 kilometres (500 miles) by 60 yuan ($8.70), and 120 yuan for longer flights.
Spring Airlines and Juneyao Airlines also announced fuel surcharge hikes.

Oil spikes

Oil prices spiked after Trump reiterated that US forces would hammer Iran for another two to three weeks but offered no solution to the closure of the Strait of Hormuz that has crippled global markets.
Brent crude, which had fallen back below $100 a barrel Wednesday, surged almost seven percent to hit $108.15, while West Texas Intermediate jumped more than five percent to $105.65.

Trump tells other countries to 'take care' of Hormuz

US President Donald Trump called Wednesday for countries that receive oil through the Strait of Hormuz to show "courage" and seize the key waterway.
"The countries of the world that... receive oil through the Hormuz Strait must take care of that passage," Trump said in his first prime-time address since the start of the war with Iran.
"Just take it, protect it, use it for yourselves."

Malaysia work-from-home push

Prime Minister Anwar Ibrahim  said Malaysia will introduce a work-from-home policy for ministries, agencies, statutory bodies and government-linked companies starting April 15, to conserve energy while the Middle East war rages.
The policy "aims to reduce fuel consumption and ensure a stable energy supply", Anwar said during a special briefing late Wednesday.

UK meeting on Hormuz shipping

Britain will hold a meeting of about 35 countries Thursday to discuss how to reopen the Strait of Hormuz, Prime Minister Keir Starmer said.
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 said.

World Bank 'extremely concerned'

The World Bank is "extremely concerned" about the effect the war on Iran will have on inflation, jobs and food security, and is in talks with member states on how to address immediate needs in the crisis, a top official told AFP.
Managing Director Paschal Donohoe's comments came as his organization announced a new partnership with the International Monetary Fund and International Energy Agency to coordinate aid responses to the war.

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 biggest economy hard.
The German economy is expected to grow by 0.6 percent this year, the seven institutes said, 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 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 said 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 said that domestic jet fuel prices would rise as the Middle East war pushed up energy costs, but 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, but no casualties were reported, the civil aviation authority said.
In a further sign of strain in the Gulf state, the National Bank of Kuwait said it would close its headquarters for two days along with another branch as Iran carries out 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.
"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," Albanese said in a national address.
burs-ami/dan

US

War in the Middle East: latest developments

  • - Iran's president asked Americans if the Middle East conflict was truly putting "America First" and accused the US of war crimes and being influenced by Israel.
  • Here are the latest developments in the Middle East war: - Hezbollah claims attacks - Lebanese militant group Hezbollah said its fighters launched drones and rockets at northern Israel on Thursday, targeting troops and a village.
  • - Iran's president asked Americans if the Middle East conflict was truly putting "America First" and accused the US of war crimes and being influenced by Israel.
Here are the latest developments in the Middle East war:

Hezbollah claims attacks

Lebanese militant group Hezbollah said its fighters launched drones and rockets at northern Israel on Thursday, targeting troops and a village.
The Israeli military's Home Front Command said air raid sirens were activated across the border. There were no reports of any casualties or damage.

Israel under Iran missile fire

Israel's military said air defences responded to waves of Iranian missile fire early Thursday, including at least two attacks after US President Donald Trump delivered an address to the American public about the war.
After the first attack, police said officers were called to "several" impact sites in central Israel, and media reports citing medics said four people were lightly wounded.

Oil prices jump

Oil prices spiked after Trump reiterated that US forces would hammer Iran for another two to three weeks but offered no solution to the closure of the Strait of Hormuz that has crippled global markets.
Brent crude, which had fallen back below $100 a barrel Wednesday, surged almost seven percent to hit $108.15, while West Texas Intermediate jumped more than five percent to $105.65.

Australia doesn't see 'end point'

Australian Prime Minister Anthony Albanese said on Thursday the original aims of the war in Iran had been met.
"Now those objectives have been realised it is not clear what more needs to be achieved or what the end point looks like," he said during a speech in the capital Canberra.
"What is clear is that the longer the war goes on the more significant the impact on the global economy will be."

Trump vows big strikes

In a speech from the White House, Trump insisted that the United States was nearing victory in Iran, and vowed two to three more weeks of "extremely hard" strikes.
"We are going to finish the job, and we're going to finish it very fast. We're getting very close," he said in remarks that largely rehashed his daily streams of social-media postings and rapid media interviews.
Trump again threatened that if Iran does not reach a negotiated settlement with him, the United States would "hit each and every one of their electric generating plants."
Attacks on civilian energy infrastructure are widely considered to be illegal under the laws of war and could constitute a war crime.

UAE responds to 'threats

Emirati air defences were responding to missile and drone "threats" on Thursday, the United Arab Emirates' defence ministry said.
Since the war erupted, the UAE and other Gulf countries have been regularly targeted by Iranian missile and drone strikes in retaliation for the US-Israeli campaign.

Iran calls US demands 'irrational'

Iran said Thursday that Washington's demands were "maximalist and irrational" and denied any negotiations were under way on a ceasefire to end the war in the Middle East.
"Messages have been received through intermediaries, including Pakistan, but there is no direct negotiation with the US," said Iranian foreign ministry spokesman Esmaeil Baqaei, quoted by the ISNA news agency.

World Bank raises alarm

The World Bank is "extremely concerned" about the impact the conflict will have on inflation, jobs and food security, and is in talks with member states on how to address immediate needs in the crisis, a top official told AFP on Wednesday.
Managing Director Paschal Donohoe's comments came as his organization announced a new partnership with the International Monetary Fund (IMF) and International Energy Agency (IEA) to coordinate aid responses to the war.

Israel medics say 14 wounded

Israel's emergency services said 14 people, including an 11-year-old girl, were wounded near Tel Aviv during a missile attack that the military blamed on Iran.
Later in the day, medics said they were treating a 61-year-old man in mild condition with blast injuries in the north following fire from Lebanon, where Israeli forces are fighting Iran-backed Hezbollah.

'America First'?

Iran's president asked Americans if the Middle East conflict was truly putting "America First" and accused the US of war crimes and being influenced by Israel.
The US-Israeli attacks sow "instability, increase human and economic costs" and plant "seeds of resentment that will endure for years," said President Masoud Pezeshkian. "Exactly which of the American people's interests are truly being served by this war?"

Iran Guards say Hormuz closed to 'enemies'

Iran's Revolutionary Guards insisted that the strategic Strait of Hormuz will remain closed to the country's "enemies," as Trump said re-opening the strait was one of his conditions for a ceasefire.
bur-ami/fox

sales

US automakers report mixed sales as car market awaits war impact

BY ELODIE MAZEIN

  • A note from Oxford Economics pointed to improving dynamics in March after winter storms abated.
  • Carmakers reported mixed first-quarter US sales Wednesday pointing to a hit from winter storms, as the Middle East war clouds the industry's outlook compared with unusually favorable dynamics a year ago.
  • A note from Oxford Economics pointed to improving dynamics in March after winter storms abated.
Carmakers reported mixed first-quarter US sales Wednesday pointing to a hit from winter storms, as the Middle East war clouds the industry's outlook compared with unusually favorable dynamics a year ago.
The US-Israeli offensive against Iran, launched on February 28, has boosted oil costs by more than 50 percent, sending gasoline prices to more than $4 per gallon in the United States.
While that adds to the affordability challenges facing the industry, experts and automakers say it is too soon to determine the war's overall impact on sales.
General Motors said Wednesday it sold 626,429 vehicles between January and March, and that the early part of the quarter was marred by "severe winter weather," while March emerged as a "much stronger month."
It also cited the "exceptionally high" level of sales in March 2025, when worries about expected tariffs from President Donald Trump prompted shoppers to rush car purchases.
Meanwhile, Toyota Motor North America reported 569,420 first-quarter vehicle sales, down 0.1 percent from a year ago.
But FCA US, the US affiliate of Stellantis, reported a four percent increase to 305,902 from its line-up, which includes Jeep, Dodge and Alfa Romeo.
And Hyundai reported a one percent increase to 205,388 units. 
Other leading automakers, including Ford and Tesla, have yet to release first-quarter figures.
Cox Automative projected a US sales decline of 6.5 percent, with the boost from expected lofty tax refunds offset by affordability difficulties and anxiety about the war.
Exactly how the Iran conflict impacts auto sales will depend on its duration, especially if higher inflation prompts central banks to keep interest rates high, or raise them higher.
The war "adds tremendous amount of uncertainty to the vehicle market," said Charlie Chesbrough, an economist at Cox Automotive.
A note from Oxford Economics pointed to improving dynamics in March after winter storms abated.
"However, sales will face major headwinds as higher gas prices due to the US-Iran war take a bite out of consumers' real disposable income growth," Oxford said.

Impact on EVs?

Auto information website Edmunds projected US car sales of 3.7 million in the first quarter, down 6.5 percent from the year-ago period.
"Between severe weather, geopolitical uncertainty, rising gas prices and ongoing affordability challenges, it's no surprise sales are down year over year," Edmunds said.
Deutsche Bank said it did not anticipate an "immediate near-term impact" from the war on volumes, confirming an outlook of 15.8 million sales for this year, down 2.5 percent from 2025.
Analysts that track electric-vehicle maker Tesla expect it sold 365,645 units in Q1, which would be an increase of 8.6 percent from the 2025 period but a decrease of 12.6 percent from the final quarter of 2025.
The outlook for EV sales has been clouded by Trump's elimination of tax credits to encourage sales of the climate-friendly autos.
But an extended period of high energy prices could spark greater interest in EVs.
Searches for EVs on Edmunds accounted for 23.8 percent of customer queries in the week of March 16, up from 20.7 percent in late February.
"While higher gas prices can spur interest in electrified vehicles, they typically need to be sustained or more pronounced to drive a meaningful shift," said Jessica Caldwell, head of insights at Edmunds.
"Right now, many consumers appear to view the latest spike as temporary," she said.
Previous oil-price surges have sent automobile markets into tailspins: Sales dropped 44.7 percent the year after the 1973 oil shock and more than 40 percent after the 1979 Iranian Revolution.
Auto sales plunged 45.5 percent in the year after the 2008 financial crisis, and slid 12.7 percent after Russia's 2022 invasion of Ukraine, according to figures from Anderson Economic Group.
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diplomacy

US lifts sanctions on Venezuelan interim leader Delcy Rodriguez

  • The reopening came after the US military operation that seized Maduro and his wife Cilia Flores from Caracas on January 3, taking them to New York to face drug trafficking charges that they deny.
  • The United States on Wednesday lifted sanctions against Venezuela's interim President Delcy Rodriguez, who took power after Washington ousted her predecessor Nicolas Maduro in a military operation in January.
  • The reopening came after the US military operation that seized Maduro and his wife Cilia Flores from Caracas on January 3, taking them to New York to face drug trafficking charges that they deny.
The United States on Wednesday lifted sanctions against Venezuela's interim President Delcy Rodriguez, who took power after Washington ousted her predecessor Nicolas Maduro in a military operation in January.
Rodriguez's name was deleted from the "Specially Designated Nationals List," according to a post on the US Treasury's Office of Foreign Assets Control website.
Rodriguez welcomed the decision, writing on X that it was part of the "normalization and strengthening" of bilateral relations.
"We trust that this progress will allow for the lifting of the sanctions currently in force against our country, and make it possible to build and guarantee an effective binational cooperation agenda for the benefit of our peoples," she added.
Ties between Washington and Caracas have warmed since Maduro's ouster, with Rodriguez complying with US President Donald Trump's demands for Caracas to open up its energy industry to American companies.
Rodriguez served as Maduro's deputy and was sanctioned by Washington for being a key official in his government, alongside officials including former defense minister Vladimir Padrino Lopez and Interior Minister Diosdado Cabello.
Rodriguez fired Lopez in mid-March, but she has been walking a fine line between demands from Washington and those from her own backers since Maduro's toppling.
Cabello, who remains in office, is seen as one of her key backers. 
On Monday, the US Embassy in Caracas resumed operations after being closed for seven years, the State Department said.
The reopening came after the US military operation that seized Maduro and his wife Cilia Flores from Caracas on January 3, taking them to New York to face drug trafficking charges that they deny.
The operation killed around 100 people in Venezuela, according to authorities there.
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