US

Middle East war: global economic fallout

  • Diesel prices in Ukraine have surged almost 25 percent since the outbreak of the US-Israeli war against Iran, with analysts warning that supply prospects for April remained unclear.  
  • Here are the latest economic events in the Middle East war: - Ukraine eyeing diesel supply - Ukrainian President Volodymyr Zelensky on Monday ordered the government to ensure stable diesel supplies, as the war in the Middle East sends oil prices spiralling.
  • Diesel prices in Ukraine have surged almost 25 percent since the outbreak of the US-Israeli war against Iran, with analysts warning that supply prospects for April remained unclear.  
Here are the latest economic events in the Middle East war:

Ukraine eyeing diesel supply

Ukrainian President Volodymyr Zelensky on Monday ordered the government to ensure stable diesel supplies, as the war in the Middle East sends oil prices spiralling.
Russia has battered Ukraine's refining capacity since invading in 2022, making Kyiv heavily dependent on fuel imports. 
Diesel prices in Ukraine have surged almost 25 percent since the outbreak of the US-Israeli war against Iran, with analysts warning that supply prospects for April remained unclear.  

US stocks rally

Wall Street stocks closed higher Monday after US President Donald Trump hailed "very good" talks with an unidentified Iranian official while shelving plans for new attacks.
Even though Tehran denied that negotiations took place, both the Dow and Nasdaq Composite index jumped by 1.4 percent.

Oil tumbles on peace prospects

Oil prices, in turn, eased as Trump said he would postpone threatened strikes on Iranian energy infrastructure as a result of the talks.
Brent crude, the international benchmark, closed 10.9 percent lower at $99.94 a barrel, while the main US oil contract West Texas Intermediate dropped 10.3 percent to $88.13 a barrel.
Energy prices have surged since the United States and Israel's war against Iran triggered Tehran's retaliation that disrupted oil deliveries through the Strait of Hormuz.

Oil disruption 'temporary'

US Energy Secretary Chris Wright said oil market disruptions were "temporary," speaking at a conference in Houston.
But Mike Wirth, chief executive of the US energy giant Chevron, warned that oil prices had yet to fully factor in fallout from the blockade.
"In particular, Asia is facing some real concerns about supply," Wirth said, citing government measures to conserve stocks.
TotalEnergies chief Patrick Pouyanne meanwhile said he expected "very high" liquefied natural gas prices by the summer if the Strait of Hormuz is not reopened.

IEA chief issues warnings

International Energy Agency chief Fatih Birol warned that the global economy was under "major threat" from the energy crisis caused by the Middle East war, adding that "no country will be immune".
At least 40 energy assets across nine Middle East countries were "severely" damaged due to the war, Birol added.

China limits fuel prices

China has limited the amount by which the country's retail fuel costs can rise, the government announced.
China's state planner, the National Development and Reform Commission, said it increased the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric ton respectively, starting from midnight.

Sweden weighs lower fuel taxes

Sweden's government said it was proposing to temporarily lower taxes on petrol and diesel to soften the blow of surging energy prices.
If passed by parliament, the tax cut would go into force on May 1 and last until the end of September, and as a first step be lowered to the EU's minimum level.
"All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden's economy to the test," Prime Minister Ulf Kristersson told a news conference.

Relief measures in Greece

Greek Prime Minister Kyriakos Mitsotakis said that the government had earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices.
The subsidies are targeted at reducing the cost of diesel fuel, petrol and fertiliser. Part of the initiative is aimed at holding back price hikes in ferry fares to the country's many islands, Mitsotakis said.

Croatia extends fuel price caps

Croatia renewed fuel price caps in place since March 9 to curb rises at the pump, Prime Minister Andrej Plenkovic said.
Diesel will be capped at 1.73 euros ($2.01) per litre, instead of a projected 1.86 euros ($2.16), while petrol will be 1.62 euros ($1.88) per litre rather than rising to 1.71 euros ($1.98).
burs/js/jgc

trade

Australia, EU agree sweeping new trade pact

BY KIRSTY NEEDHAM

  • Likewise, the European Union is on a drive to strike new partnerships in the face of US levies and Chinese export controls. 
  • European Union chief Ursula von der Leyen and Australian Prime Minister Anthony Albanese struck a long-awaited free trade deal on Tuesday, compromising to boost exports in the face of global uncertainty over trade.
  • Likewise, the European Union is on a drive to strike new partnerships in the face of US levies and Chinese export controls. 
European Union chief Ursula von der Leyen and Australian Prime Minister Anthony Albanese struck a long-awaited free trade deal on Tuesday, compromising to boost exports in the face of global uncertainty over trade.
Von der Leyen's visit to Australia with trade commissioner Maros Sefcovic in tow comes as the 27-nation bloc and the import-reliant nation navigate renewed energy vulnerability sparked by the war in the Middle East.
The trade accord is the latest inked by Brussels in a push to diversify trade as Europe faces challenges from the United States and China.
The two sides also inked an agreement to step up defence cooperation as well as critical raw materials. 
"The EU and Australia may be geographically far apart but we couldn't be closer in terms of how we see the world," said von der Leyen.
"We are sending a strong signal to the rest of the world that friendship and cooperation is what matters most in times of turbulence," she added.
"This is a significant moment for our nation as we secure an agreement with the world's second largest economy," Albanese said.
Key sticking points on Australian use of European geographical names and access for Australian beef to Europe were overcome to reach a deal after eight years of negotiations.
A compromise will see Australian winemakers allowed to use the term prosecco domestically, but stop using it for exports after 10 years.
Australia will be allowed to keep using some geographical names, such as feta and gruyere, where producers have used the name for at least five years.
European car makers will benefit from Australia raising the threshold for a luxury car tax on electric vehicles -- three-quarters of EVs will now become exempt.
Under the trade deal, the EU said it expected exports to Australia to grow by a third over a decade -- with dairy and car makers seeing strong growth of around 50 percent.
The quota of Australian beef allowed into the EU will increase more than 10 times the current level over the next decade, although that falls short of the level Australian farmers had been seeking.
EU firms exported to Australia 37 billion euros ($42.9 billion) of goods last year, and 31 billion euros of services in 2024.

Global uncertainty

Australia's largest export market is China and the United States is its largest source of investment.
But Canberra has redoubled efforts to diversify export markets for farmers since a 2020 dispute with Beijing saw agriculture exports blocked for several years, and last year's global imposition of US trade tariffs.
Likewise, the European Union is on a drive to strike new partnerships in the face of US levies and Chinese export controls. 
Front and centre in meetings will also likely be the war in the Middle East, which has sent oil prices soaring.
In Canberra, International Energy Agency chief Fatih Birol warned Monday the world faced an energy crisis not seen in decades if the conflict was not resolved.
And von der Leyen this month said the conflict had served as a "stark reminder" of Europe's vulnerabilities.
On Tuesday, she called for an immediate end to hostilities in the Middle East in the face of a "critical" situation for energy supply chains globally.
Australia -- which is heavily reliant on fuel from abroad -- has also felt the pressure from the global energy squeeze.
oho/tc

addiction

US social media addiction trial jury struggles for consensus

BY ROMAIN FONSEGRIVES

  • A 20-year-old California woman identified as Kaley G.M. testified at the trial that YouTube and Instagram fueled her depression and suicidal thoughts as a child, telling jurors that she became obsessed with social media, starting with YouTube videos, when she was six.
  • Jurors resume deliberations on Tuesday in a landmark social media trial after signaling that they were having trouble agreeing when it comes to one of the two defendants, Meta and YouTube.
  • A 20-year-old California woman identified as Kaley G.M. testified at the trial that YouTube and Instagram fueled her depression and suicidal thoughts as a child, telling jurors that she became obsessed with social media, starting with YouTube videos, when she was six.
Jurors resume deliberations on Tuesday in a landmark social media trial after signaling that they were having trouble agreeing when it comes to one of the two defendants, Meta and YouTube.
"The jury has difficulty coming to a consensus regarding one defendant, do you have any advice on how to move forward?" the jurors told Judge Carolyn Kuhl, according to a note she read out loud. 
Kuhl responded by asking the jurors to continue their deliberations.
"If you are unable to reach a verdict, the case will have to be applied before another jury selected in the same manner and from the same community from which you were chosen, and add additional cost to everyone," she told the jurors.
The afternoon ended with no verdict, meaning the panel will return on Tuesday to continue its quest for consensus.
The jury's first full week of deliberations ended Friday with the panel sending the judge a query related to calculating damages in the case, which is expected to set a precedent for thousands of similar suits in the United States.
That indicated enough jurors agreed that one or both of the tech platforms was negligently or harmfully designed and users should have been warned, according to verdict forms.
The lawsuit is one of hundreds accusing social media firms of luring young users into becoming addicted to their content and potentially suffering from depression, eating disorders, psychiatric hospitalization and even suicide.

'Negligent' designs

Internet titans have long shielded themselves with Section 230 of the US Communications Decency Act, which frees them of responsibility for what social media users post.
But this case argues that the firms are responsible for defective products, with business models designed to hold people's attention and to promote content that can harm their mental health.
The verdict could turn on the question of whether familial strife and other real-world trauma, or rather YouTube and Meta apps such as Instagram, are to blame for the mental woes of the woman who filed the suit.
A 20-year-old California woman identified as Kaley G.M. testified at the trial that YouTube and Instagram fueled her depression and suicidal thoughts as a child, telling jurors that she became obsessed with social media, starting with YouTube videos, when she was six.
Under cross examination, however, Kaley also talked about feeling neglected, berated and picked on by family members.
A jury form given to jurors asks the panel to decide whether Meta or YouTube should have known their services posed a danger to children or if they were negligent in design.
If so, jurors are to decide if Meta or YouTube were "substantial factors" in causing Kaley's woes and how much they should pay in damages.
The trial was selected as a "bellwether" proceeding, the outcome of which establishes a precedent for resolving other lawsuits that blame social media for fueling an epidemic of mental and emotional trauma.
However, being unable to agree on a verdict regarding Meta or YouTube could result in a different case setting that standard.
"We're reading tea leaves and we don't know what they mean," said plaintiff's attorney Mark Lanier.
"I don't think that we're even remotely close to the issue of a mistrial."
rfo-arp-gc/jgc

airports

US deploys immigration agents to airports amid shutdown chaos

BY JOHN FALCHETTO WITH FRANKIE TAGGART IN WASHINGTON

  • At Hartsfield–Jackson Atlanta International Airport, where fliers have experienced some of the longest waits, travelers voiced hopes that ICE agents would be able to bring some order to the disruption.
  • The US immigration agency at the center of a firestorm over heavy-handed enforcement tactics began deploying Monday to major airports, as officials scrambled to ease mounting travel disruption during a prolonged, partial government shutdown.
  • At Hartsfield–Jackson Atlanta International Airport, where fliers have experienced some of the longest waits, travelers voiced hopes that ICE agents would be able to bring some order to the disruption.
The US immigration agency at the center of a firestorm over heavy-handed enforcement tactics began deploying Monday to major airports, as officials scrambled to ease mounting travel disruption during a prolonged, partial government shutdown.
The move places Immigration and Customs Enforcement (ICE) personnel -- already under intense scrutiny after fatal shootings linked to immigration operations -- in highly visible roles at crowded transport hubs across the country.
Officials say the agents are being sent to at least 14 airports, including in New York, Chicago and Atlanta, to assist overstretched Transportation Security Administration (TSA) staff, many of whom have gone weeks without full pay.
The agents will not conduct passenger screening but are expected to handle support roles such as monitoring exits and managing logistics, allowing TSA officers to focus on security checks.
The deployment comes as airports struggle with long delays during a busy travel period for the spring break, with some passengers reporting waits of several hours.
Unscheduled absences among TSA staff have surged to their highest levels since the beginning of the shutdown, which has halted the operations of the TSA parent agency, the Department of Homeland Security (DHS) -- raising concerns about safety and system strain.
Tom Homan, President Donald Trump's point man on border security, told CNN the move was a temporary measure to "help TSA move those lines along," while Trump framed it as part of a broader effort to maintain security during the funding standoff.
The president told reporters he had not ruled out bolstering the deployment with National Guard troops.
At Hartsfield–Jackson Atlanta International Airport, where fliers have experienced some of the longest waits, travelers voiced hopes that ICE agents would be able to bring some order to the disruption.

Shutdown talks deadlocked

"I came yesterday for a 5:15 pm flight. I got here at 2:30 and by the time I made it through TSA and got to my gate my plane departed and I missed my flight," nurse Angeline Peart, 27, told AFP. "I had to be rebooked for today."
"We're hopeful to see if they're able to help out and see if we can get on our plane to go home today," added Suez Khan, a 28-year-old artist.
But the deployment has drawn sharp criticism from Democrats, rights activists and some Republicans, who warn it risks escalating tensions in already stressed environments.
The controversy reflects broader unease over the administration's immigration crackdown, which has sparked protests and legal challenges in several states.
In Minnesota earlier this year, two US citizens -- Renee Good and Alex Pretti -- were killed in separate encounters with federal immigration officers, incidents that fueled nationwide outrage and scrutiny of enforcement tactics.
Good, a mother of three, was shot by an ICE agent during an operation, while Pretti, an intensive care nurse, was later killed by officers from Customs and Border Protection during a related deployment.
Against that backdrop, the airport deployment has taken on outsized significance, highlighting the increasingly blurred lines between immigration enforcement and domestic security roles.
"The last thing that the American people need are for untrained ICE agents to be deployed at airports all across the country, potentially to brutalize or in some instances kill them," House Democratic Minority Leader Hakeem Jeffries told CNN.
Meanwhile, negotiations in Washington remain deadlocked.
Democrats have pushed to reopen most of DHS while demanding new limits on immigration enforcement, while Republicans have resisted those conditions.
Trump has further complicated talks by insisting he will not sign any funding deal unless Congress also passes the SAVE America Act, a contentious bill to overhaul how citizens register to vote in US elections.
With no breakthrough in sight and Congress nearing a recess, officials warn the disruption could deepen -- leaving airports, and the wider system, under growing strain.
ft/msp

US

War in the Middle East: latest developments

  • - UK sends Gulf air defences - Britain is sending short-range air defence systems to the Middle East to counter Iranian missile attacks, Prime Minister Keir Starmer said.
  • Here are the latest developments in the Middle East war: - New missile salvo - Iran fired missiles at Israel early Tuesday, the Israeli military said, noting that the barrage was aimed at the country's north and that its substantial air defenses were "working to intercept the threat".
  • - UK sends Gulf air defences - Britain is sending short-range air defence systems to the Middle East to counter Iranian missile attacks, Prime Minister Keir Starmer said.
Here are the latest developments in the Middle East war:

New missile salvo

Iran fired missiles at Israel early Tuesday, the Israeli military said, noting that the barrage was aimed at the country's north and that its substantial air defenses were "working to intercept the threat".
Minutes later, a loud blast rang out over Jerusalem, AFP reporters in the city heard.
The Magen David Adom emergency services said it had no immediate reports of casualties following the strike, but had dispatched paramedics to one area where a reported impact was received.

Syrian base targeted

Syria's army said Monday that one of its bases in the northeast was targeted by a missile strike from neighbouring Iraq, while an Iraqi official said a local armed group was behind the attack.
The Iraqi official, requesting anonymity, told AFP that "an Iraqi faction fired seven Arash-4 rockets, an improved version of the Grad rocket, towards a base in the Hassakeh region".

Trump-Netanyahu call

Israeli Prime Minister Benjamin Netanyahu said that he had spoken with Donald Trump and that the US president believed the countries' military gains in Iran could be converted into a negotiated agreement that protected Israel's interests.
"President Trump believes there is a chance to leverage the tremendous achievements of the (Israeli military) and the US military in order to realise the war's objectives in an agreement -- an agreement that will safeguard our vital interests," Netanyahu said in a video statement.
Earlier Trump announced he had shelved plans to attack Iran's power plants in a stunning about-turn, sparked by what he said were "very good" talks with unidentified Iranian officials to bring an end to the war.

Israel strikes Beirut suburbs

An Israeli strike hit the Lebanese capital's southern suburbs, hours after the Israeli army issued a warning for residents of the area to evacuate, saying it was "striking Hezbollah infrastructure in Beirut".
AFPTV's live broadcast showed a cloud of smoke over the southern suburbs, which are considered a stronghold of the Iran-backed militant group.

Pakistani, Iranian leaders speak

Pakistani Prime Minister Shehbaz Sharif said he had spoken with Iranian President Masoud Pezeshkian on "the grave situation in the Gulf region", and promised that Pakistan was committed to playing "a constructive role in advancing peace".

Israeli interceptor system malfunctions

A malfunction in Israel's "David's Sling" aerial interceptor system allowed two Iranian ballistic missiles to strike the south of the country, wounding dozens of people over the weekend, the military confirmed.
The system is a key component of Israel's multi-layered air defence shield.

Israel strikes Guards' site

The Israeli military said it struck a site in Tehran belonging to Iran's Revolutionary Guards and used for directing battalions of the Basij paramilitary force.
The hit came days after Israel announced it had "eliminated" the intelligence chief of the Basij in a strike that also killed the force's top commander, Gholamreza Soleimani.
Israel has been targeting the Basij force as part of efforts to undermine the Iranian authorities' grip on power.

UK summons Iran envoy

Britain's foreign ministry summoned Iran's ambassador to London, Seyed Ali Mousavi, criticising what it called Tehran's "reckless and destabilising actions" in the UK and overseas.
"The summons follows the recent charging of two individuals, one Iranian national and one British-Iranian dual national, under the National Security Act, on suspicion of providing assistance to a foreign intelligence service," a Foreign Office spokesperson said.

'Point of no return'

The International Committee of the Red Cross demanded a halt to the "war on essential infrastructure" in the Middle East, warning of potential "irreversible consequences" including harm to nuclear facilities.
"What we have seen in recent days in the Middle East risks reaching a point of no return," ICRC President Mirjana Spoljaric said.

UK sends Gulf air defences

Britain is sending short-range air defence systems to the Middle East to counter Iranian missile attacks, Prime Minister Keir Starmer said.
"We're deploying short-range air defence systems to Bahrain at speed," Starmer told a parliamentary committee, adding that Britain was "doing the same with Kuwait and Saudi Arabia".
burs-mlm/js

economy

Venezuela protesters demand end to 'hunger' level wages

  • "This is no salary," pensioner Pilar Navarro, 72, told AFP. "What can you do with this good-for-nothing pension?
  • Hundreds of Venezuelan workers and pensioners marched Monday for an increase in "hunger" wages as well as pensions frozen for four years and eroded by galloping inflation.
  • "This is no salary," pensioner Pilar Navarro, 72, told AFP. "What can you do with this good-for-nothing pension?
Hundreds of Venezuelan workers and pensioners marched Monday for an increase in "hunger" wages as well as pensions frozen for four years and eroded by galloping inflation.
The monthly minimum wage currently equates to around 28 US cents, while annual price hikes surpass 600 percent.
The last wage increase came in 2022 when then-president Nicolas Maduro, ousted in a US military operation on January 3, passed a decree lifting the monthly level to $28. But the value of Venezuela's currency has plummeted since then.
"This is no salary," pensioner Pilar Navarro, 72, told AFP.
"What can you do with this good-for-nothing pension? Were it not for my son helping me out I'd be unable to buy my medicine," she complained at the march in the capital, Caracas.
Government vouchers lift income to $150 a month but that still falls far short of the amount a family needs to buy basic foodstuffs -- $645, according to private estimates.
"Free salaries," read one banner at the rally, a reference to the "Free Maduro" motif the government has used to demand Maduro's release from jail in New York.
A squadron of motorcyclists, supporters of Maduro and his charismatic Socialist predecessor Hugo Chavez, obstructed the march as it approached the labor ministry.
Riot police also blocked their path.
Unions are demanding a minimum wage of at least $200, appealing for recourse from a fund set up after Maduro fell.
The fund is said to contain revenue from oil sales facilitated by the United States as part of its new relationship with interim president Delcy Rodriguez.
A government website shows fund income of $300 million and the same amount earmarked for a minimum wage increase, without providing any further details.
"If oil money has been paid into the fund, they must use it to increase salaries," said union leader Griselda Sanchez.
Nonetheless, economists say Venezuela is in no position to raise wages to the level demanded.
Pro-Maduro elements continued to urge the lifting of international sanctions on Venezuela which they roundly blame for the nation's economic ills.
Without sanctions, "we can better address the wages issue," said powerful interior minister, Diosdado Cabello.
afc/jt/cw/ksb

LaGuardia

Runway collision kills two pilots at New York airport

BY ANGELA WEISS

  • The plane was operated by Jazz Aviation, a regional partner of Air Canada, which said the CRJ-900 aircraft flew into LaGuardia from Montreal as Flight 8646.
  • Two pilots were killed and dozens of people injured after an Air Canada plane collided with a fire truck on a runway at New York's LaGuardia airport, US authorities said Monday.
  • The plane was operated by Jazz Aviation, a regional partner of Air Canada, which said the CRJ-900 aircraft flew into LaGuardia from Montreal as Flight 8646.
Two pilots were killed and dozens of people injured after an Air Canada plane collided with a fire truck on a runway at New York's LaGuardia airport, US authorities said Monday.
The crash late Sunday halted flights at LaGuardia, a major transport hub, with the Bombardier jet left tilted back onto its tail, its cockpit smashed, next to the damaged emergency vehicle. 
By 2:00 pm (1800 GMT) Monday, the airport said flights had restarted but told travelers to still expect delays and cancellations. 
US aviation investigators, assisted by Canadian counterparts, opened a probe into what appeared to be LaGuardia's first fatal accident since 1992. 
An audio recording from the air traffic tower showed that a controller had cleared the truck, which was responding to a separate incident, to cross the runway before urgently ordering it to halt. 
"Stop, truck one, stop!" the controller said moments before the collision. An alarm was then heard. 
Surveillance footage shared by US media captured the moment the plane smashed into the rescue vehicle as it crossed its path, sending both hurtling down the runway. 
The pilot and co-pilot were killed in the crash, officials said.
"These were two young men at the start of their career, so it's an absolute tragedy that we're sitting here with their loss," Bryan Bedford, head of the Federal Aviation Administration, told reporters. 
More than 40 other people were taken to the hospital, but many were discharged by Monday afternoon, said Kathryn Garcia, head of the city's Port Authority.
She added that the two men in the damaged fire truck were expected to recover.
The plane was operated by Jazz Aviation, a regional partner of Air Canada, which said the CRJ-900 aircraft flew into LaGuardia from Montreal as Flight 8646.
A preliminary passenger list showed 76 people on board the flight, including four crew members, Jazz Aviation said in a statement.

'Everyone was screaming'

Jack Cabot, a passenger on the flight, recalled a chaotic scene as the plane "immediately hit something" after a hard landing. 
"Everyone was hunkered down, everyone was screaming, we didn't have any directions because the pilots' cabin was destroyed," he told US media. 
"So someone said 'let's get the emergency exit, let's get the door and all jump out' and that's exactly what we did."
US President Donald Trump described the crash as "terrible," telling reporters, "They made a mistake. It's a dangerous business."
Canadian Prime Minister Mark Carney said the fatal incident was "deeply saddening."
"Canadian officials are working closely with their US counterparts on the ground as the investigation continues. My thoughts are with the victims, their families, and all those impacted," he wrote on X.
Transport Secretary Sean Duffy told reporters that LaGuardia is a "very well staffed airport" -- addressing what he called a "rumor" there was only one controller in the tower late Sunday. 
Air traffic controller shortages are a problem across the United States and the government has ramped up its hiring efforts in response.
As hundreds of flights were canceled due to the crash, AFP journalists saw travelers at LaGuardia laying down in a terminal Monday. 
Located in the borough of Queens, LaGuardia is the third-busiest airport serving New York, handling 33.5 million passengers in 2024, according to port authority figures.
It completed an $8 billion redevelopment in 2024, upgrading its aging infrastructure with new terminals and roadways.
Deadly air crashes in the United States in recent years include a collision between a passenger jet and an army helicopter near Washington in January 2025 that killed 67 people.
mjw-bjt/md

Global Edition

Oil slides, stocks rebound on Trump's Iran remarks

  • The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington, and London's FTSE 100 ended the day lower as energy and defence stocks slumped.
  • Oil prices tumbled and stock markets rebounded Monday after US President Donald Trump suddenly ordered a halt to strikes on Iranian energy infrastructure after initially setting a 48-hour deadline, claiming "very good" talks with Tehran.
  • The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington, and London's FTSE 100 ended the day lower as energy and defence stocks slumped.
Oil prices tumbled and stock markets rebounded Monday after US President Donald Trump suddenly ordered a halt to strikes on Iranian energy infrastructure after initially setting a 48-hour deadline, claiming "very good" talks with Tehran.
Crude futures plunged more than 14 percent after Trump's comments on his Truth Social platform, but pared those losses after Iran denied any talks were taking place.
Brent closed down 10.9 percent at $99.94 per barrel, while its US equivalent West Texas Intermediate lost 10.3 percent to $88.13.
Sam Stovall of CFRA Research said the fact that Trump had specified a five-day pause on energy infrastructure strikes "means we probably could see some additional strength through this week" in the equity markets.
Asian and European stock markets had kicked off the new week with sharp losses, but Trump's update, which came after the Asian close, saw European and US equities rally.
The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington, and London's FTSE 100 ended the day lower as energy and defence stocks slumped.
Wall Street's main stock indices closed up, with the S&P 500, Nasdaq Composite and Dow Jones all gaining more than one percent. 
"It's incredibly difficult to trade these markets when Trump is swinging between massive escalation and declaring peace/victory... but the market is happy for now that we do not enter a new phase of danger," said Saxo UK investor strategist Neil Wilson.
Stovall of CFRA Research said in an environment of such high uncertainty, investors were making decisions "based on suppositions rather than facts."
XTB research director Kathleen Brooks said that if Trump's comments pointed to be an off-ramp from the conflict, "we could see a move back towards $90 per barrel for Brent in the coming days." 
But she added that oil would not quickly return to the pre-war levels of under $70 a barrel as it would take time to repair damaged energy infrastructure in the Gulf.
Ahead of Trump's update, the International Energy Agency warned of the worst global energy crisis in decades.
Iran warned the Hormuz Strait "will be completely closed" should Trump act on his threat to destroy its energy infrastructure.
The 48-hour ultimatum came as the waterway -- through which a fifth of global oil and liquefied natural gas flows -- remains effectively closed to all but Iranian oil.
Analysts have warned of a potential inflation surge as oil prices remain far above pre-war levels despite Monday's plunge.
That could prompt central banks hike interest rates, putting the brakes on the global economy.
Trump's latest announcement sent the greenback lower against the euro, pound and yen. 
For the markets, Stovall warned that uncertainty remained the name of the game.
"We could just as easily fall tomorrow if the president says something else that contradicts what happened today," he said. "But I don't think that's going to happen."

Key figures at around 2015 GMT

Brent North Sea Crude: DOWN 10.9 percent at $99.94 per barrel
West Texas Intermediate: DOWN 10.3 percent at $88.13 per barrel
New York - Dow: UP 1.4 percent at 46,208.47 points (close)
New York - S&P 500: UP 1.2 percent at 6,581.00 (close)
New York - Nasdaq Composite: UP 1.4 percent at 21,946.76 (close)
London - FTSE 100: DOWN 0.2 percent at 9,894.15 (close)
Paris - CAC 40: UP 0.8 percent at 7,726.20 (close)
Frankfurt - DAX: UP 1.2 percent at 22,653.86 (close)
Tokyo - Nikkei 225: DOWN 3.5 percent at 51,515.49 (close)
Hong Kong - Hang Seng Index: DOWN 3.5 percent to 24,382.47 (close)
Shanghai - Composite: DOWN 3.6 percent at 3,813.28 (close)
Euro/dollar: UP at $1.1616 from $1.1550 on Friday
Pound/dollar: UP at $1.3437 from $1.3323
Dollar/yen: DOWN at 158.34 yen from 159.30 yen
Euro/pound: DOWN at 86.45 pence from 86.68 pence
burs-aha/js

environment

Trump administration seeks to ease oil fears but industry wary

BY NINA ISENI WITH BEIYI SEOW AND ASAD HASHIM IN WASHINGTON

  • His comments came as energy industry leaders converge in Texas this week under the cloud of oil and gas supply disruptions from the war launched by the United States and Israel against Iran in late February.
  • A top US official in President Donald Trump's government sought to reassure fears about the oil market Monday as war raged on in the Middle East, but industry leaders remain wary.
  • His comments came as energy industry leaders converge in Texas this week under the cloud of oil and gas supply disruptions from the war launched by the United States and Israel against Iran in late February.
A top US official in President Donald Trump's government sought to reassure fears about the oil market Monday as war raged on in the Middle East, but industry leaders remain wary.
US Energy Secretary Chris Wright told the annual CERAWeek conference in Houston that disruption to global energy flows is "temporary," as costs surged after US-Israeli strikes on Iran prompted Tehran's retaliation that virtually blocked the Strait of Hormuz.
Wright said Washington has adopted "pragmatic solutions" such as by helping oil flow to Asian refineries. The United States also started releasing oil from its strategic reserves on Friday.
"But these are mitigants of a situation that's temporary," he stressed to a packed ballroom.
His comments came as energy industry leaders converge in Texas this week under the cloud of oil and gas supply disruptions from the war launched by the United States and Israel against Iran in late February.
More than 10,000 attendees are expected for CERAWeek, the spring gathering that has taken on unexpected importance as fuel prices rocketed after the war began.
Wright said the United States would be able to release up to 1.5 million barrels of oil a day, and this could get close to three million barrels.
Attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated global supply problems.
Oil prices tumbled Monday as Trump ordered a halt on strikes targeting Iranian infrastructure following "very good" talks. But Tehran denied that negotiations were underway.
Wright told CNBC on Monday that even though the world is undergoing a "short-term period of disruption" now, "the long-term benefits will be enormous."

'Economic terrorism'

Separately, the chief of UAE state energy company ADNOC slammed Tehran's actions to effectively block the Strait of Hormuz, a key waterway for global energy supplies.
"Weaponizing the Strait of Hormuz is not an act of aggression against one nation," Sultan Ahmed Al Jaber said in virtual remarks to the conference.
"It's economic terrorism against every nation. And no country should be allowed to hold Hormuz hostage," he added.
TotalEnergies chief Patrick Pouyanne expects "very high" liquefied natural gas prices by the summer, when gas storage in Europe is being refilled, if the strait is not reopened.
US energy giant Chevron's chief executive Mike Wirth warned that oil prices have yet to fully factor in fallout from the blockade.
"In particular, Asia is facing some real concerns about supply," he said, citing government measures to conserve stocks.
Even after the war ends, it will take time to rebuild inventories, he added.

Wind power projects

Outside the conference venue, dozens of demonstrators pushed back on fossil fuel reliance.
Chloe Torres of the Texas Campaign for the Environment said her community in Corpus Christi has been hit by "hyper-industrialization" from the fossil fuel and petrochemical industry. 
"We are rapidly running out of water," she said, adding that industrial demand has strained resources.
At the event, the Trump administration reached a deal with French energy giant TotalEnergies in which it would pay almost $1 billion to end its US offshore wind farm projects, the Interior Department said.
The $928 million reimbursement, which was what TotalEnergies paid for project leases, would instead be invested in US oil and gas projects.
"We're partnering with TotalEnergies to unleash nearly $1 billion" tied up in lease deposits, said Interior Secretary Doug Burgum.
The weeklong conference gathers experts from industry, finance, government and academia to discuss energy and other topics including trade and artificial intelligence.
Besides the war, much of the attention this year again centers on the profound reorientation of US energy and environmental policy under Trump.
This year's conference also features a plenary event with Venezuelan opposition leader and Nobel Peace Prize laureate Maria Corina Machado, who is due to speak Tuesday.
bur-mav-bys/jgc

economy

Bosnian truckers blocked EU freight terminals for a day over visa rules

  • In late January, hundreds of truck drivers from several Balkan countries staged days-long blockades at multiple terminals to protest the EES rollout.
  • Bosnian truck drivers blockaded two freight terminals on the border with EU member Croatia on Monday in a one-day protest over visa rules limiting their time in the bloc.
  • In late January, hundreds of truck drivers from several Balkan countries staged days-long blockades at multiple terminals to protest the EES rollout.
Bosnian truck drivers blockaded two freight terminals on the border with EU member Croatia on Monday in a one-day protest over visa rules limiting their time in the bloc.
The EU has since October been rolling out its long-delayed Entry/Exit System (EES), which Balkan drivers consider "discriminatory" because it subjects them to the same 90-days-in-180 rule as tourists.
"Our work has been made administratively impossible," Hidajet Muratovic, one of the protest organizers, told AFP at the Orasje crossing.
The blockades were lifted late on Monday, after drivers were promised talks with Bosnian authorities on Wednesday to discuss possible solutions.
The rollout, due to take full effect on April 10, has led to stricter checks, with many drivers now being turned back at the border with Croatia, which joined the EU in 2013.
"In March alone, we had more than 200 drivers turned back at the Croatian border," trucker Atif Hadzidedic said during the blockade at the Svilaj crossing.
In late January, hundreds of truck drivers from several Balkan countries staged days-long blockades at multiple terminals to protest the EES rollout.
The blockades in Bosnia, Serbia, Montenegro and North Macedonia were lifted after talks were announced in Brussels, but those discussions have yet to produce a decision.
Serbian truck drivers have postponed new blockades until April 10, when the visa rules are due to take full effect.
Balkan economies were losing around 100 million euros ($115 million) a day in goods exports, the Serbian Chamber of Commerce said in January.
The EU is the Balkans’ main trading partner, accounting for more than 60 percent of the region’s total trade, most of it carried by road.
Trade in goods between the EU and the Balkans exceeded 83 billion euros in 2024.
In Bosnia, 93 percent of trade goes by road.
rus/cbo/oz/rl

US

What cargo ships are passing Hormuz strait?

  • "Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
  • Just a trickle of cargo ships and tankers -- most of them Iranian -- have made it through the Strait of Hormuz since Iranian forces effectively blocked the crucial trade route in the Middle East war.
  • "Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
Just a trickle of cargo ships and tankers -- most of them Iranian -- have made it through the Strait of Hormuz since Iranian forces effectively blocked the crucial trade route in the Middle East war.
Here are facts and figures about vessels that have passed through the 167-kilometre (104-mile) long strait since the war broke out with US-Israeli strikes on Iran on February 28.

95% shipping drop

From March 1 to 1600 GMT on March 23, commodities carriers made just 144 crossings, according to analytics firm Kpler -- a 95 percent decrease from peacetime.
Of these, 91 crossings were by oil and gas tankers and more than half were loaded, Kpler data showed, with most travelling east out of the strait.
"Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
On Monday, two Indian-flagged tankers carrying liquefied petroleum gas (LPG) and a China-bound carrier were among the latest to navigate the strait, according to Kpler. 
The Panama-flagged Bright Gold was due to arrive in China on April 13 with around 40,000 tonnes of methanol.
A Chinese-owned containership -- the Newvoyager -- also transited the waterway after making a payment to Iranian authorities, Lloyd's List reported. 
The exact amount and method of payment could not be confirmed, it said.

New approved route?

Monday's crossings all appeared to have used a purported Tehran-approved northern route around Larak Island just off the Iranian coast.
Lloyd's List updated Monday that it has tracked more than 20 ships using the so-called corridor, with the majority Greek-owned but others Indian-, Pakistan- and Syrian-owned.
It added that the Iranian authorities are reportedly handling transit requests on a case-by-case basis while some governments, including India, were said to be negotiating with Tehran for bulk passage arrangements.
At least one vetted vessel paid a reported $2 million payment to pass safely through the strait, Lloyd's List reported last week.
Two of the vessels navigating it Monday -- the Bright Gold and the Indian tanker Pine Gas -- kept their AIS transponders on, a rare occurrence for a non-Iranian vessel in the current climate.

Iranian, Greek, Chinese ships

The biggest proportion of ships to have passed through the strait are owned or flagged in Iran, followed by Greek and Chinese carriers, Bridget Diakun, an analyst at Lloyd's List Intelligence, said last week.
"Although Iran is continuing to control the Strait and exit its own oil, everything else is largely still at a standstill," Meade previously noted.

51 sanctioned ships

Since the war started, more than 40 percent of the ships transiting the strait have been under US, EU or UK sanctions, according to an AFP analysis of passage data.
Of the oil and gas tankers, nearly 59 percent were under sanctions.
Since March 16, "anything heading westbound has been shadow fleet, gas carriers or tankers... they absolutely dominate the traffic going through," Diakun told the Lloyds briefing.

Oil, LNG to Asia 

Commodities analysts at JPMorgan bank have noted that most of the oil passing through the strait was headed for Asia, principally China.
Cichen Shen, Asia Pacific editor at Lloyd's List, said there were indications online that Chinese authorities were working on "some sort of exit plan" for their big tankers stuck in the region.
Meanwhile, Europe-bound LNG cargoes have been diverted to Asia, according to MarineTraffic. 
It noted that around 11 LNG tankers originally bound for Europe have been diverted to Asia since March 3, according to its analysis of market data, amid restricted supply and rising spot prices.

1.3 mn barrels of Iran oil 

The JPMorgan analysts said overall 98 percent of the observable oil traffic through the strait was Iranian, averaging 1.3 million barrels a day "in early March".
A fifth of the world's oil and liquefied natural gas passes through the strait in peacetime.
rlp-jj/sbk

satellite

Namibia rejects Starlink licence request

  • Starlink had applied for the licence through its local unit, Starlink Internet Services Namibia (Pty) Limited, the Communications Regulatory Authority of Namibia (CRAN) said in a government gazette. 
  • Namibia said Monday it had rejected a request for billionaire Elon Musk's Starlink to operate its satellite internet services in the country, dealing the company a second setback in southern Africa.
  • Starlink had applied for the licence through its local unit, Starlink Internet Services Namibia (Pty) Limited, the Communications Regulatory Authority of Namibia (CRAN) said in a government gazette. 
Namibia said Monday it had rejected a request for billionaire Elon Musk's Starlink to operate its satellite internet services in the country, dealing the company a second setback in southern Africa.
Starlink had applied for the licence through its local unit, Starlink Internet Services Namibia (Pty) Limited, the Communications Regulatory Authority of Namibia (CRAN) said in a government gazette. 
Starlink provides high-speed internet access to remote locations around the world via thousands of low Earth orbit satellites.
The regulator gave no explanation for the refusal, saying only that "the full reasons for the decision can be requested from the authority." 
AFP sought comment from CRAN but had not received a response.
However CRAN's statement noted that Starlink's local subsidiary has no local ownership. 
US-based Starlink, which counters criticism on its website with a "Myth vs Fact" page, says it established the Namibian company and plans to partner with local firms to create jobs and economic opportunities.
Starlink has failed to secure a licence in neighbouring South Africa, where ownership rules have also blocked its entry.
Telecommunications companies operating in South Africa, including those with foreign investment, are currently required to provide 30 percent equity to historically disadvantaged groups -- a policy created to mitigate the legacy of racial inequality left by apartheid.
South Africa-born Musk has refused ceding ownership, calling the black empowerment policy "openly racist". 
str-ho/rl

energy

US, TotalEnergies reach 'nearly $1 bn' deal to end offshore wind projects

  • In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
  • The United States and TotalEnergies on Monday signed an agreement to end the French company's offshore US wind farm projects and redirect those funds towards fossil fuel production, with the US interior secretary saying the deal was worth "nearly $1 billion."
  • In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
The United States and TotalEnergies on Monday signed an agreement to end the French company's offshore US wind farm projects and redirect those funds towards fossil fuel production, with the US interior secretary saying the deal was worth "nearly $1 billion."
US Interior Secretary Doug Burgum made the announcement at the annual CERAWeek conference in Houston, at an event where he appeared alongside TotalEnergies CEO Patrick Pouyanne, after which both men signed the agreement.
"We're partnering with TotalEnergies to unleash nearly $1 billion that was tied up in a lease deposit that was directed towards the prior administration's subsidies that were pushing expensive weather-dependent offshore wind," said Burgum.
Pouyanne welcomed the deal, saying it redirected TotalEnergies's $928 million investment in two wind farm leases off the North Carolina and New York coasts into US natural gas projects, in particular the Rio Grande LNG plant.
French giant TotalEnergies had four gigawatts (GW) of offshore projects under development, including 3 GW for the New York Bight project and 1 GW in North Carolina.
But at the end of 2024, Pouyanne announced that they were "put on hold" due to the unlikelihood of obtaining federal licenses from the Trump administration.
Under former president Joe Biden, the United States had accelerated progress on wind farm construction as part of its fight against climate change.
US President Donald Trump, however, has reversed course on many of Biden's climate policies, taking particular aim at wind power.
Trump has long complained about the aesthetics of wind farms, and says they produce expensive electricity.
In December, the Trump administration put five wind power projects on hold, citing "national security" risks. 
That order was then nullified by rulings at several US federal courts, allowing work to resume.
In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
"We could recycle all this money we are dedicating into, I would say US energy policy, and, for us, in I would say smarter investment. So it was a win-win dialog," he said.
According to a TotalEnergies statement, the company has also signed a letter of intent with Glenfarne, the lead developer of the Alaska LNG project, for the longterm offtake of 2 million tons per year of liquefied natural gas (LNG) over 20 years.
aha-ni-nal/mjf

Israël

Countries act to limit fuel price rise, cut consumption

  • Here are some of the measures that have been adopted: - Tax cuts and aid - Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
  • The surge in fuel prices triggered by the war in the Middle East has prompted countries to take measures to limit the financial impact on consumers and businesses.
  • Here are some of the measures that have been adopted: - Tax cuts and aid - Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
The surge in fuel prices triggered by the war in the Middle East has prompted countries to take measures to limit the financial impact on consumers and businesses.
Countries have also moved to reduce consumption, especially when they have limited reserves.
Here are some of the measures that have been adopted:

Tax cuts and aid

Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
Spain has launched a five-billion-euro ($5.8-billion) plan that reduces the value added tax (VAT) on fuel which should result in a reduction of 30 euro cents per litre.
A similar measure is in place in Portugal and has been announced in Sweden.
Since US-Israeli attacks on Iran set off the war on February 28 a number of countries such as Croatia, Hungary, South Korea and Thailand have set price limits on fuel.
Vietnam has waived customs duties on fuel imports through the month of April.
Japan is using subsidies to refiners to ensure the pump price of petrol stays around 170 yen ($1.07) per litre, having hit a record 190.8 yen in the middle of the month.
Taiwan uses a mechanism that absorbs 60 percent of increases.
China on Monday limited the amount that fuel prices may rise at the pump.
Greece has earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices.
Morocco has put in place a special direct subsidy for road transport firms.
Brazil has announced temporary measures to limit fuel price increases, including suspending taxes on diesel fuel.
Germany has banned service stations from raising prices more than once per day.

Stocks, rationing, restrictions

The war is also forcing countries to dip into their strategic stocks and take other measures to avoid shortages, including rationing and reducing travel.
The 32 member countries of the International Energy Agency (which includes the G7 nations) have released a record amount from their strategic reserves.
Bangladesh has imposed rationing.
Egypt has limited non-essential travel by government employees. 
The Philippines has reduced ferry services and prices of local public transport have risen.
India, the world's number two importer of liquefied petroleum gas which is used to produce cooking gas, has prioritised supplies for households.
South Korea's ruling party said the country will lift a cap on coal-powered generation capacity set at 80 percent and boost the use of nuclear power to about the same level.

Reducing energy consumption

Other countries are introducing measures to reduce fuel consumption.
Thailand is encouraging government employees to work from home, while Vietnam is encouraging employers to do so.
Indonesia is looking at imposing one day of working from home for government employees, while the Philippines has gone further, introducing a four-day work week for government employees. 
In Thailand, the temperature in public buildings has been raised to 26 degrees Celsius (79F) to reduce electricity consumption for air conditioning.
Vietnam is encouraging people to ride bicycles, share rides and use public transport.
Bangladesh shut universities and brought forward the Eid holidays, the end of the Muslim holy month of Ramadan, to limit electricity consumption. 
It also cancelled decorative light displays on government buildings on Eid and those scheduled for Independence Day celebrations on March 26 and asked shopping malls to do the same.
Countries are also looking at importing Russian crude after the United States temporarily suspended sanctions in mid-March.
ole/uh/rl/kjm

energy

Russia, Vietnam advance plans for first nuclear power plant

  • The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
  • Russia and Vietnam on Monday signed a cooperation agreement on the construction of Vietnam's first nuclear power plant, Russia's Rosatom nuclear agency said on Monday.
  • The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
Russia and Vietnam on Monday signed a cooperation agreement on the construction of Vietnam's first nuclear power plant, Russia's Rosatom nuclear agency said on Monday.
Prime Minister Pham Minh Chinh was visiting energy-rich Russia as Vietnam seeks to shore up its fuel reserves at a time of disruption to energy supplies caused by the war in the Middle East, sparking fears of fuel shortages around the world.
Since the US-Israeli war against Iran began in late February, the cost of 95-octane petrol and diesel in Vietnam, a manufacturing hub, has soared by 50 percent and 70 percent respectively.
The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
Rosatom head Alexey Likhachev said the agreement would be the "foundation for a long-term industrial partnership, which will strengthen Vietnam's energy independence and open up new opportunities for economic growth".
No timeline was given for when construction would start or when the plant might come online.
Moscow and Hanoi had initially agreed to build the Ninh Thuan 1 atomic power station back in 2010, but later decided to suspend construction.   
Another agreement between Russia's top liquefied natural gas (LNG) producer Novatek and a Vietnamese buyer was also signed recently, Novatek's CEO Leonid Mikhelson said on Monday.
"We have been in negotiations with potential buyers for over five years, and have very recently signed a preliminary supply agreement with one of them. We are ready to commence deliveries at the earliest opportunity," he told state broadcaster Rossiya 24, without naming the customer. 
Russia and Vietnam have also signed a deal on oil and gas production in both countries, the TASS state news agency reported, citing Russian Prime Minister Mikhail Mishustin, without giving details.
bur/sbk

climate

German court rejects landmark climate case against BMW, Mercedes

BY SARAH MARIA BRECH WITH SAM REEVES IN FRANKFURT

  • DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
  • A German top court on Monday rejected a landmark climate case brought by environmentalists that had aimed to force auto giants BMW and Mercedes-Benz to stop selling combustion-engine cars from 2030.
  • DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
A German top court on Monday rejected a landmark climate case brought by environmentalists that had aimed to force auto giants BMW and Mercedes-Benz to stop selling combustion-engine cars from 2030.
The case at the Federal Court of Justice was brought by campaigners of the group Environmental Action Germany (DUH), and marked the latest example of activists turning to the judiciary to enforce climate action.
The plaintiffs built their case on a landmark 2021 ruling by Germany's Constitutional Court that the state has a duty to protect future generations from the effects of climate change and sought to apply the principle to companies.
But handing down its ruling, Germany's highest court for civil and criminal matters rejected DUH's arguments. It found that citizens' personal rights were "not affected... by the business activities of the defendant," in a decision that upheld rulings by lower courts.
"Private individuals cannot demand that automobile manufacturers refrain from placing passenger cars with internal combustion engines on the market" ahead of European Union deadlines, it said.
The DUH case demanded a 2030 phase-out of fossil fuel-powered cars -- five years earlier than the target year in a European Union plan that was last year watered down after intense lobbying by automakers.
DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
But she said the court had made it clear that responsibility for action lies with the federal government, and called on Chancellor Friedrich Merz to step up action to protect the climate.
The DUH said it was also considering whether to file an appeal to the Constitutional Court.

Activists turning to courts

Mercedes welcomed the ruling for providing "a clarification of our democratic system".
"Setting legal requirements for climate targets is the responsibility of the legislature, not the judiciary," said the group in a statement, adding that climate protection remained a key consideration.
BMW added that the decision contributed to "legal certainty for companies operating in Germany". 
"Throughout the proceedings, we have consistently maintained the position that the debate over how to achieve climate targets must take place within the political process through democratically elected parliaments," the group added in a statement. 
The legal action is part of a wider trend of climate activists turning to courts.
Campaigners celebrated last May after a regional court in northern Germany ruled that companies could in principle be sued over the consequences of their emissions.
However, the court did not award damages to a Peruvian farmer, Saul Luciano Lliuya, who had brought the case against utility firm RWE.
The case against the carmakers was passed up to the Federal Court of Justice on appeal after lower courts in Stuttgart and Munich ruled in favour of the firms, finding they had complied with relevant regulations.
German carmakers have invested billions in the transition to electric and hybrid vehicles in a bid to meet EU climate targets.
But progress has been slowed by lower than anticipated demand, with many consumers put off by higher upfront costs and still patchy charging infrastructure.
burs-sr/fz/gv

Israel

Global economy under 'major threat' from Strait of Hormuz crisis: IEA chief

  • "No country will be immune to the effects of this crisis if it continues to go in this direction.
  • The global economy is under "major threat" from the energy crisis caused by the Middle East war and "no country will be immune" to its effects, International Energy Agency chief Fatih Birol said Monday.
  • "No country will be immune to the effects of this crisis if it continues to go in this direction.
The global economy is under "major threat" from the energy crisis caused by the Middle East war and "no country will be immune" to its effects, International Energy Agency chief Fatih Birol said Monday.
Speaking at the National Press Club in Australia's capital, Birol compared the current energy crisis to those of the 1970s and the impact of Russia's 2022 invasion of Ukraine.
"This crisis as things stand is now two oil crises and one gas crash put all together," Birol said.
"The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible. 
"No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts."
US President Donald Trump and Tehran have issued tit-for-tat threats as the war entered its fourth week, with the US president demanding the Islamic republic reopen the blocked Strait of Hormuz, through which around 20 percent of the world's oil and gas shipments transit. 
The bottleneck has nearly halted all petroleum shipments through the narrow waterway.
Oil prices rose again early Monday, with US benchmark crude briefly touching the $100-per-barrel mark.
Birol told Australian media that at least forty energy assets across the region had been "severely or very severely damaged" in the conflict.
oho/tc

politics

China's premier vows to expand global 'trade pie': state media

  • The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
  • China's number two leader Li Qiang said Sunday that his country was willing to help expand the global "trade pie" by further opening up, state media reported, while he slammed unilateralism from certain countries.
  • The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
China's number two leader Li Qiang said Sunday that his country was willing to help expand the global "trade pie" by further opening up, state media reported, while he slammed unilateralism from certain countries.
Many of China's key trading partners have increasingly called on Beijing to reduce its soaring trade surplus owing to its impact on local competition.
Its trade surged by a fifth in the first two months of the year, official data showed earlier this month, significantly outpacing forecasts.
China "will steadfastly advance high-level opening up, import more high-quality foreign goods, and work alongside all parties to promote the optimised and balanced development of trade", Premier Li Qiang told business executives in Beijing on Sunday, according to Xinhua.
Li was speaking at the opening of the annual China Development Forum, attended this year by prominent business leaders including Apple CEO Tim Cook.
The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
He slammed growing unilateralism and protectionism, which he said was "no panacea for resolving problems".
Beijing has been seeking to steer a shaky economy onto a more stable path since the end of the pandemic, particularly by boosting consumption.
It had been locked in a blistering trade war last year with Washington after President Donald Trump imposed tariffs on countries including China. 
The recent trade boost is a lifeline for China, the world's second-largest economy, as domestic consumer activity has slumped, and adds to the record surplus achieved last year.
The China Development Forum convenes as the Middle East war, triggered by US and Israeli strikes on Iran, rages on.
Tehran has retaliated with strikes across the region and beyond in a conflict that has threatened global energy security as well as China's oil supplies.
Li told the Chinese officials and global business executives the international rules-based order was suffering "severe disruption" with power politics "running rampant".
Chinese Vice Premier He Lifeng met with senior representatives of multinational companies including HSBC, UBS, Schneider Electric and Standard Chartered on Saturday, Xinhua reported.
isk/fox

US

Sri Lanka raises fuel prices by 25 percent as war bites

  • Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
  • Sri Lanka raised fuel prices by 25 percent on Sunday, the second increase in two weeks, as the country prepared for more impact from the war in the Middle East.
  • Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
Sri Lanka raised fuel prices by 25 percent on Sunday, the second increase in two weeks, as the country prepared for more impact from the war in the Middle East.
Regular petrol was increased to 398 rupees ($1.30) per litre, up from 317 rupees, while diesel, the fuel commonly used for public transport, rose by 79 rupees to 382.
Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
"We hope to achieve a 15 to 20 percent reduction in fuel consumption with the latest increase," an official at the Ceylon Petroleum Corporation said.
He said President Anura Kumara Dissanayake told them last week that the country must prepare for a prolonged conflict in the Middle East that could affect the island’s energy supplies.
The president ordered a four-day working week from last Wednesday and asked employers to reintroduce work-from-home arrangements where possible.
The Strait of Hormuz, a key waterway through which some 20 percent of global oil exports pass in peacetime, has been effectively closed by Iran in retaliation over the US and Israeli war against it, now entering its fourth week.
Sri Lanka imports all of its oil and also buys coal for electricity generation.
Sri Lanka buys refined petroleum products from Singapore, Malaysia and South Korea, while crude oil for its Iran-built refinery is sourced from the Middle East.
The government has warned that the fighting in the Middle East, and a prolonged war, could seriously undermine its efforts to emerge from the economic meltdown of 2022.
Sri Lanka defaulted on its $46 billion foreign debt in 2022 after the country ran out of foreign exchange. Since then, Colombo has secured a $2.9 billion IMF bailout.
aj/pzb/fox

trade

US-China 'Board of Trade' may help ties but experts flag market worries

BY BEIYI SEOW

  • "That's not a good sign," he told AFP. "Where are the market forces?"
  • As Washington and Beijing mull a new mechanism to adjust trade between the world's two largest economies, some analysts warn that it could interfere with market forces, while others consider it a path to smoother coexistence.
  • "That's not a good sign," he told AFP. "Where are the market forces?"
As Washington and Beijing mull a new mechanism to adjust trade between the world's two largest economies, some analysts warn that it could interfere with market forces, while others consider it a path to smoother coexistence.
What is the managed approach to trade that Donald Trump's administration is seeking with China, as both sides work towards the US president's potential meeting with Chinese leader Xi Jinping in the coming weeks?

What is a 'Board of Trade'?

After top US economic officials held talks with their Chinese counterparts in Paris last weekend, US trade envoy Jamieson Greer said both sides discussed creating a "US-China Board of Trade."
The mechanism would help to formalize and identify what kinds of goods the United States should be exporting to and importing from China, he said.
The board could look into opportunities for expanding trade in non-sensitive products, or discuss mutual tariff reduction in non-strategic sectors, said Wendy Cutler of the Asia Society Policy Institute.
For now, officials appear to have made progress towards Chinese purchase commitments for agriculture, energy and planes from the United States, added Cutler, a former US trade official.

Is this new to US-China ties?

The talks come as Washington looks towards "managed trade," which Chad Bown of the Peterson Institute for International Economics said focuses on outcomes rather than policies.
This could mean import commitments or voluntary export restraints, as in the case of Japan in the 1980s to manage the flow of autos into the United States, he said.
A more recent example is the "Phase One" deal that Washington signed with Beijing during Trump's first presidency, marking a truce in their trade war, Bown added.
The agreement saw China agree to import an added $200 billion in US products over two years -- although China did not meet the commitment.

Why has this sparked worry?

"Instead of taking regulations out, tariffs down, and making it easier for customers and companies to decide what they sell at what prices, it (would be) more mechanized," said Joerg Wuttke, a partner at advisory firm DGA-Albright Stonebridge Group.
"That's not a good sign," he told AFP. "Where are the market forces?"
Such an approach is also not good for competitiveness, and could fuel concern among other trading partners, Wuttke warned.
A US-based business leader, speaking on condition of anonymity, said that managing trade raises concerns over how Washington will decide which industries to prioritize, and which sectors will benefit.

Does it help the relationship?

Bown of PIIE believes a managed trade agreement between the United States and China could be more successful than previous attempts to solve economic conflicts. 
The question is whether this leads to "a more sustainable, longer-term relationship" that is better than a "constant back and forth of conflict," he said.
"It's clear the old system didn't work. Could we try a new system that might work?"
But any trade agreement would have to be realistic and acceptable to both parties.
"You'd have to have a sincere commitment by both sides to make this work," he added. "Even then, it's going to be really, really hard."
bys/aha/acb