Global Edition

US, European stocks rise despite latest jump in oil prices

  • The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
  • US and European equities rose Tuesday despite another jump in oil prices as fresh Iranian attacks on crude-producing neighbors added to an already disrupted petroleum supply picture.
  • The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
US and European equities rose Tuesday despite another jump in oil prices as fresh Iranian attacks on crude-producing neighbors added to an already disrupted petroleum supply picture.
Market gains in US indices moderated somewhat after an early rally prompted by upbeat outlooks from artificial intelligence leader Nvidia and major US airlines, which said strong travel demand has offset the hit from higher jet fuel costs.
The S&P 500 finished up 0.3 percent as markets await a US Federal Reserve decision on Wednesday. Delta Air Lines led the major American carriers with a 6.6 percent gain.
"The market is showing some resilience despite renewed strength in oil prices, but the pullback from earlier highs suggests a degree of caution," said Briefing.com.
"Participants appear reluctant to press bets too aggressively ahead of tomorrow's (Fed) decision, with investors likely looking for clarity on how policymakers are factoring the recent surge in oil prices into their inflation outlook and rate path."
Oil prices powered higher, with international benchmark Brent oil futures jumping 3.2 percent to $103.42 a barrel.
A new drone strike on Tuesday hit the Fujairah oil complex, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports.
Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.
The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
Rystad Energy estimated that just 12.5 million barrels per day of Middle Eastern oil remains online, down from the 21 million per day pre-war base.
"But the 12.5 million bpd figure is not secure," Rystad said. "If the (Hormuz) situation persists, the drop in departures could start feeding through into additional export losses in the weeks ahead, as producers face growing difficulty moving crude out of the Gulf."
Earlier in Asia, Hong Kong, Seoul and Taipei closed higher, though Tokyo and Shanghai dipped.
Investors are awaiting a slew of central bank decisions this week, with expectations that interest rates will remain unchanged as elevated energy prices threaten to drive up inflation, even if the labor market appears to be softening in the United States. 
The Federal Reserve "is in a bind," said eToro US investment analyst Bret Kenwell. 
"Slower growth and a softer labor market would normally argue for easing monetary policy. But inflation remains sticky, while surging oil prices add another layer of uncertainty to the outlook," he added.
Australia's central bank hiked its key interest rate Tuesday, pointing to "sharply higher fuel prices."

Key figures at around 2115 GMT

Brent North Sea Crude: UP 3.2 percent at $103.42 per barrel
West Texas Intermediate: UP 2.9 percent at $96.21 per barrel 
New York - Dow: UP 0.1 percent at 46,993.26 (close) 
New York - S&P 500: UP 0.3 percent at 6,716.09 (close)
New York - Nasdaq Composite: UP 0.5 percent at 22,479.53 (close)
London - FTSE 100: UP 0.8 percent at 10,403.60 (close)
Paris - CAC 40: UP 0.5 percent at 7,974.49 (close)
Frankfurt - DAX: UP 0.7 percent at 23,730.92 (close)
Tokyo - Nikkei 225: DOWN 0.1 percent at 53,700.39 (close)
Hong Kong - Hang Seng Index: UP 0.1 percent at 25,868.54 (close)
Shanghai - Composite: DOWN 0.9 percent at 4,049.91 (close)
Euro/dollar: UP at $1.1536 from $1.1505 on Monday
Pound/dollar: UP at $1.3352 from $1.3320
Dollar/yen: DOWN at 159.05 yen from 159.07 yen
Euro/pound: UP at 86.38 pence from 86.37 pence
burs-jmb/mlm

Norway

SAS cancels flights after fuel prices surge

  • Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns. phy/ef/gv/rh/giv 
  • Scandinavian airline SAS said Tuesday it will cancel at least a thousand flights in April after the war in the Middle East sent fuel prices surging.
  • Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns. phy/ef/gv/rh/giv 
Scandinavian airline SAS said Tuesday it will cancel at least a thousand flights in April after the war in the Middle East sent fuel prices surging.
"The price of jet fuel has doubled in ten days. Even if we try to absorb cost increases as much as possible, this is a shock that directly hits the airline industry," CEO Anko van der Werff told Swedish business daily Dagens Industri.
SAS had been one of the first carriers to announce fare increases to account for soaring jet fuel prices.
"We are cancelling a few hundred flights in March, but trying to protect our traffic as much as possible," the SAS chief said. 
He said more cancellations were expected after Easter, when traffic normally dips. 
The measures will affect "at least a thousand" flights, though he stressed this remained limited in scale given SAS operates around 800 flights a day.
Most of the cancelled flights in March were domestic routes in Norway, with only a few affecting Sweden and Denmark, according to a SAS statement sent earlier to AFP. 
"Given the ongoing situation in the Middle East, including the sharp and sudden increase in global fuel prices, we are taking measures to strengthen our resilience," the statement said. 
"One such measure is a limited number of short-term flight cancellations." 
A barrel of Brent oil, the benchmark reference for energy markets, has risen to around $100 since the United States and Israel attacked Iran in late February, leading Iran to retaliate against oil installations in several Gulf states.
The Strait of Hormuz, through which a fifth of the world's hydrocarbon demand normally passes, is effectively closed. 
Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns.
phy/ef/gv/rh/giv 

US

Israel vows to find and 'neutralise' Iran's new supreme leader

BY AFP TEAMS IN JERUSALEM, TEHRAN, BEIRUT AND WASHINGTON

  • Israel's military vowed it would also eliminate Iran's new supreme leader, Mojtaba Khamenei, the son of the late ayatollah who took power after his father's death on February 28.
  • Israel's military on Tuesday vowed to hunt down and "neutralise" Iran's new supreme leader Mojtaba Khamenei, after saying it had killed the Islamic republic's powerful national security chief in an airstrike.
  • Israel's military vowed it would also eliminate Iran's new supreme leader, Mojtaba Khamenei, the son of the late ayatollah who took power after his father's death on February 28.
Israel's military on Tuesday vowed to hunt down and "neutralise" Iran's new supreme leader Mojtaba Khamenei, after saying it had killed the Islamic republic's powerful national security chief in an airstrike.
If confirmed, the death of Ali Larijani would represent a major blow to Iran, whose long-serving leader Ayatollah Ali Khamenei was killed less than three weeks ago in US-Israeli strikes that ignited a war in the Middle East.
The reported assassination came as Iran's speaker vowed that shipping in the Strait of Hormuz would not return to its pre-war norm, and Donald Trump blasted allies for rebuffing his call to help escort oil tankers through the blockaded waterway.
Tehran has not confirmed the death of Larijani, described as a key figure close to the late ayatollah, but urged Iranians across the country to rally Tuesday in a show of defiance against enemy "plots".
Israel's military vowed it would also eliminate Iran's new supreme leader, Mojtaba Khamenei, the son of the late ayatollah who took power after his father's death on February 28.
"We don't know about Mojtaba Khamenei, we don't hear him, we don't see him, but I can tell you one thing: we will track him down, find him, and neutralise him," military spokesman Brigadier General Effie Defrin told reporters.

'Right hand man'

In a televised statement, Israeli Prime Minister Benjamin Netanyahu described Larijani as "the boss of the Revolutionary Guards, which is the gang of gangsters that actually runs Iran".
He said the overthrow of Iran's authorities by the people "will not happen all at once, it will not happen easily. But if we persist in this -- we will give them a chance to take their fate into their own hands."
While Mojtaba Khamenei has not been seen in public since he was appointed, Larijani, 68, walked with crowds at a pro-government rally last week in Tehran.
"He has effectively been the figure in charge of the regime's survival, its regional policy and its defence strategy," David Khalfa, co-founder of the Atlantic Middle East Forum, told AFP.
"It's the supreme leader who gives the order, but he is the one who carries it out. He is the right-hand man."
Shortly after Israel said it had killed him, Larijani's official social media profiles posted a handwritten note by him paying tribute to Iranian sailors killed in a US submarine attack this month. 
The note was not dated, nor did the post address the claim of his death.
Images on Iranian state television showed large crowds rallying from the early evening in Tehran and other cities, many waving the nation's flag, on a night usually marked by festive Persian new year celebrations.
AFP journalists reported muted Nowruz celebrations in Tehran, with some fireworks and crackers heard between shots from air defence systems.
Israel's military said it was striking positions of Iran's Basij paramilitary force around Tehran on Tuesday, after announcing it had killed group's top commander, Gholamreza Soleimani.
Iran's Revolutionary Guards confirmed Soleimani's death in a statement Tuesday evening.
Israel earlier said it had also targeted Akram al-Ajouri, head of the military wing of the group Palestinian Islamic Jihad, in a strike in Iran.
Since the October 7, 2023 croos-border attacks by Hamas into Israel from Gaza, Israel has pursued what analysts have described as a policy of decapitation, targeting the leaders of its enemies.
Turkey's Foreign Minister Hakan Fidan on Tuesday called these assassinations "truly illegal".

Trump scolds allies

Iran has retaliated by targeting its US-allied Gulf neighbours and all but closing the Strait of Hormuz through which a fifth of global crude passes, sending oil prices soaring.
"The Strait of Hormuz situation won't return to its pre-war status," Mohammad Bagher Ghalibaf said in an English-language social media post on Tuesday.
Oil prices surged after several countries pushed back on Trump's demand they help secure the strait by sending warships to escort tankers.
Trump accused NATO of making a "foolish mistake" by refusing to help and said the US no longer needed assistance in reopening the strait.
"Because of the fact that we have had such Military Success, we no longer 'need,' or desire, the NATO Countries' assistance -- WE NEVER DID! Likewise, Japan, Australia, or South Korea," Trump posted on his Truth Social network.
"WE DO NOT NEED THE HELP OF ANYONE!" he added.
His comments came moments after President Emmanuel Macron said France was ready to help once the situation was calmer but stressed his country was "not a party to the conflict", echoing other EU and NATO leaders.
A top US counterterrorism official resigned to protest the war, arguing that Iran had posed no imminent threat to the United States.

Sleeping in cars

Countries from the Gulf to Lebanon and Iraq were pummelled by airstrikes, with AFP journalists reporting loud explosions Tuesday evening in capitals across the region. 
The war has also drawn in Lebanon, after Tehran-backed Hezbollah militants struck Israel over Khamenei's killing.
Israel has stepped up strikes and deployed ground troops to its northern neighbour, and the Lebanese military says six of its soldiers have been killed so far.
More than a million people have been displaced across Lebanon, while Israeli strikes have killed 886 people since March 2, Lebanon's health ministry says.
In the southern city of Sidon, displaced people were sleeping in their cars, according to an AFP team on the ground.
"Lots of people are coming every day to ask for shelter but we don't have space anymore, we can't accept them," said Jihan Kaisi, the director of an NGO that runs a school-turned-shelter, where more than 1,100 people are crammed together.
burs-np/dc

US

Middle East war: global economic fallout

  • - Australia hikes rates - Australia's central bank hiked its key interest rate, pointing to "sharply higher fuel prices" driven by the Middle East war. 
  • Here are the latest economic events in the Middle East war on Tuesday: - Oil prices climb - Oil prices rose again as Iran launched fresh attacks on crude-producing neighbours, while stock markets were higher ahead of key central bank meetings.   
  • - Australia hikes rates - Australia's central bank hiked its key interest rate, pointing to "sharply higher fuel prices" driven by the Middle East war. 
Here are the latest economic events in the Middle East war on Tuesday:

Oil prices climb

Oil prices rose again as Iran launched fresh attacks on crude-producing neighbours, while stock markets were higher ahead of key central bank meetings.   
International benchmark Brent crude was up 3.4 percent in US trading to $103.59 per barrel, while US benchmark WTI rose 2.9 percent to $96.16.
- Iran vets friendly ships for Hormuz passage: trackers - 
Iran is selecting ships from friendly countries to pass through the Strait of Hormuz, a crucial trade waterway cut off by the Middle East war, data trackers indicated.
Meanwhile, Iraq is in contact with Iran to try to arrange passage for some of its oil tankers through the Strait of Hormuz, the country's oil minister told local media.

US does 'not need' help from allies on Iran, Trump says

President Donald Trump said Tuesday that US forces "no longer need" military help in the Iran war, after his calls for assistance from allies to reopen the Strait of Hormuz to oil traffic were largely rebuffed.
The American president has spent recent days griping about how world powers have so far declined to send warships to escort tankers through the narrow waterway in and out of the Gulf and key to the transit of crude.
France is ready to help escort ships through the Strait of Hormuz but only once the situation has become "calmer", President Emmanuel Macron said on Tuesday.

German investment morale plummets

Investor morale in Germany, Europe's largest economy, has plunged to its lowest level in almost a year as the Middle East war rattles markets, according to a survey by the ZEW economic research institute.
Sentiment among investors on the future of the German economy fell 58.8 points in the past month, the survey said, leaving it at its lowest level since Trump first imposed sweeping global tariffs last April.

New Fujairah attack

A new drone strike hit the Fujairah oil complex on the east coast of the United Arab Emirates on Tuesday causing a fire but no injuries, authorities said.
"Civil defence teams from the emirate intervened immediately on site and are continuing their efforts to bring the situation under control" authorities said in a statement on X.
The facility, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports, was also hit on Monday. A source told AFP that oil was no longer being loaded into storage tanks.

Drone attack targets Iraqi oil field

Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.
Majnoon oil field was "targeted by two drones, one hit a telecommunication tower," but there was no damage, ministry spokesperson Saheb Bazoun said.
A security official said the second drone targeted the offices of an American firm operating at the site.

Australia hikes rates

Australia's central bank hiked its key interest rate, pointing to "sharply higher fuel prices" driven by the Middle East war. 
The Reserve Bank of Australia became one of the first major central banks to lift rates in response to the turmoil, raising its key cash rate 25 basis points to 4.10 percent.

Thai petrol queues

From the capital Bangkok to Chiang Rai in the far northern reaches of the country, drivers and riders in Thailand queued for petrol Tuesday as shortages worsened and price rises loomed.
Authorities imposed a cap on the retail price of diesel after the US-Israeli war with Iran disrupted shipping and damaged petroleum facilities in the Middle East, raising global oil prices.
Tuesday was the last day the 33 baht ($1) a litre limit remained in force, and while Thailand's transport minister said prices would go up by less than one baht on Wednesday, many feared bigger price rises within days.

SAS cancels flights over fuel prices

Scandinavian airline SAS said Tuesday it has cancelled around one hundred domestic flights this week after the war in the Middle East sent fuel prices surging. 
burs-rl/giv

US

Iran vets friendly ships for Hormuz passage: trackers

  • Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
  • Iran is selecting ships from friendly countries to pass through the Strait of Hormuz, a crucial trade waterway cut off by the Middle East war, data trackers indicated Tuesday.
  • Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
Iran is selecting ships from friendly countries to pass through the Strait of Hormuz, a crucial trade waterway cut off by the Middle East war, data trackers indicated Tuesday.
Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
But at least five ships exited the Strait via Iranian waters on March 15 and 16, maritime intelligence firm Windward said in an analysis report on Tuesday.
"The new route illustrates how Iran's selective blockade has evolved to allow allies and supporters to transit", it said, citing its tracking as "rising evidence that Iran is exerting permission-based transit and control of the strait".
Natasha Kaneva, a commodities analyst at JPMorgan bank, said in an analysis on Monday that at least four ships had been tracked exiting the strait via the Larak–Qeshm Channel, near the Iranian coast, over the previous two days.
"This is not a standard route for vessels and could reflect a process designed to confirm vessel ownership and cargo, enabling passage for ships that are not affiliated to the US or its allies," she said in a note sent to AFP.
The vessels included bulk carriers and one oil tanker, the Pakistani-flagged Karachi.
Tracking site MarineTraffic said the Karachi transited the strait with its automatic transponder system activated -- where most vessels keep it turned off to avoid being targeted.
Kaneva said most of the crude passing through the strait was headed for Asia, principally China.
Several countries have opened talks with Tehran to secure passage for their vessels, while the United States has pushed allies to provide military protection for shipping in the region.
Two Indian-flagged tankers carrying liquefied petroleum gas reached Indian ports after crossing the strait over the weekend after officials from the countries said they held talks.
A Turkish-owned ship was also able to cross the strait with Iran's permission, Turkey's transport minister Abdulkadir Uraloglu said in comments published on Friday.
rlp/zap/rl

US

War in the Middle East: latest developments

  • It said weapons, camera drones and communication devices were seized.
  • Here are the latest developments Tuesday in the Middle East war: - Ukrainian anti-drone experts - Some 201 Ukrainian anti-drone military experts were in several Middle East countries to help defend against Iranian-designed drones, President Volodymyr Zelensky said.
  • It said weapons, camera drones and communication devices were seized.
Here are the latest developments Tuesday in the Middle East war:

Ukrainian anti-drone experts

Some 201 Ukrainian anti-drone military experts were in several Middle East countries to help defend against Iranian-designed drones, President Volodymyr Zelensky said.

US embassy struck

The US embassy in Baghdad was the target of a drone and rocket attack, a security official said.
The strike sparked a fire on embassy grounds, the source said, while a witness reported seeing the fire from her balcony.

Crowds gather in Iran

Crowds gathered in Iranian cities after authorities called for nationwide rallies to defy enemy "plots", state television said.
The rallies come on a night usually marked by Persian new year (Nowruz) festivities, with the authorities apparently keen to prevent any anti-government dissent at a time when people traditionally take to the streets.

Mexico ready to host Iran team

Mexican President Claudia Sheinbaum confirmed that her country was prepared to host Iran's first-round matches at the 2026 World Cup if needed.
Earlier, Iran's football federation said it was negotiating with FIFA to relocate the country's World Cup first-round matches to Mexico from the United States because of the war.

NATO, Britain 'mistakes'

US President Donald Trump said that NATO was making a "foolish mistake" on Iran, after the military alliance's members largely rebuffed his calls to help reopen the Strait of Hormuz to oil traffic.
Trump also said he was disappointed with UK Prime Minister Keir Starmer's response, telling reporters: "He hasn't been supportive, and I think it's a big mistake... I'm disappointed with Keir -- I like him, I think he's a nice man, but I'm disappointed."

Israel says striking Basij

Israel's military said it was striking positions of Iran's Basij paramilitary force around Tehran, after announcing it had killed the volunteer militia's top commander.

US doesn't 'need' help

Trump said "we no longer need" help reopening the Strait of Hormuz, after his request for allies to quickly send warships was snubbed.
"We have had such Military Success, we no longer 'need,' or desire, the NATO Countries' assistance -- WE NEVER DID!" Trump wrote on his Truth Social platform. "WE DO NOT NEED THE HELP OF ANYONE!"

Israel says Larijani killed

Israeli said Iran's powerful national security chief Ali Larijani was "eliminated" in a night-time strike. 
Iran has not been confirmed the death.

US counterterrorism official quits

A top US counterterrorism official, Joseph Kent, resigned to protest the war. "I cannot in good conscience support the ongoing war in Iran," Kent, who was appointed by Trump, said in his resignation letter.
Trump said Kent was "weak on security" and it was a "good thing" he quit.

Lebanese troops killed

Lebanon's military said that three soldiers were killed in Israeli air strikes in the country's south.
Lebanon's health ministry said Israeli attacks have killed 912 people in the country since the latest Israel-Hezbollah conflict erupted on March 2, raising a previous toll of 886 a day earlier.

Hezbollah denial

Hezbollah denied it had any members in Kuwait after the Gulf country announced the arrest of 14 Kuwaitis and two Lebanese nationals allegedly affiliated with the group over a "sabotage plot".
Kuwait's interior ministry said Monday that the group "aimed to destabilise the country's security and recruit individuals to join the terrorist organisation". It said weapons, camera drones and communication devices were seized.

France to help when 'calmer'

France is ready to help escort ships through the Strait of Hormuz but only once the crisis is "calmer", President Emmanuel Macron said. 
"We are not a party to the conflict and therefore France will never take part in operations to open or liberate the Strait of Hormuz in the current context," Macron said following Trump's weekend demand that allies help secure the waterway.

Iraq seeks Hormuz passage

Iraq said it was in contact with Iran to try to arrange passage for some of its oil tankers through the Strait of Hormuz.
"Communications are underway with the relevant authorities to authorise the passage of certain oil tankers to pass through the Strait of Hormuz, in order that we can resume our exports," Oil Minister Hayan Abdel Ghani told local television.
burs/yad/giv

US

Ships in Gulf risk shortages on board, industry warns

BY JOE JACKSON

  • "Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships.
  • Thousands of seafarers face dwindling supplies of fuel and water as they wait on board, stranded by the Middle East war, a key shipping body warned Tuesday as it urged governments to help get maritime traffic flowing again.
  • "Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships.
Thousands of seafarers face dwindling supplies of fuel and water as they wait on board, stranded by the Middle East war, a key shipping body warned Tuesday as it urged governments to help get maritime traffic flowing again.
John Stawpert is marine director of the London-based International Chamber of Shipping (ICS), which represents the world's national shipowner associations and over 80 percent of the world merchant fleet.
Here is an edited version of his interview with AFP ahead of an emergency meeting of the UN's International Maritime Organisation in London on Wednesday and Thursday.

What is the impact on crews?

"There are 20,000 seafarers on board 3,000 vessels of different types trapped in the Persian Gulf.
"Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships. We're already seeing some issues reported about fuel oil supplies. We've also got concerns about the ability of some of those ships to produce potable water.
"It's obvious things like food and water, in the first instance, and then seeing if there is a way to supply them with fuel, notwithstanding that if you can't move things by ship, it makes that incredibly difficult.
"We need to work with flag-states... but we also need to work with the regional states to come up with a solution that ensures these ships can be resupplied."

Are military escorts welcome?

"Potentially, yes, but it depends on the terms of the support that's being provided.
"It's not just thinking in terms of hardware on the water. It's also the information and intelligence... (available) to ships, which can help with that threat assessment that is ultimately what will decide whether ships move or not.
"The issue we have at the moment, and this is one of the reasons why we haven't seen very many ships at all move, is that it's not clear what the targeting criteria are for vessels going through those waters."
Escorts "would depend on what is being provided by whom and to whom. Really I think what we need is a solution that meets the needs of all ships, rather than just say, individual flags."

What must governments do?

"If we can persuade states, through some mechanism, to provide a channel effectively for those ships to get out of the region, then that would be hugely beneficial.
"Hopefully some states will step up and say they will provide some guarantee of safety to shipping that would give us the confidence that we could move through the Strait again.
"We would like to see serious consideration of some means to facilitate the movement of vessels out of the affected region as a priority. We'll be raising this at the International Maritime Organization tomorrow (Wednesday)."
jj/rlp/rmb

conflict

EU to help reopen blocked oil pipeline in Ukraine

  • Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
  • EU chief Ursula von der Leyen said Tuesday the bloc will help reopen a damaged pipeline that pumps Russian oil through Ukraine to Hungary -- after Budapest accused Kyiv of stalling on repairs in an escalating row.
  • Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
EU chief Ursula von der Leyen said Tuesday the bloc will help reopen a damaged pipeline that pumps Russian oil through Ukraine to Hungary -- after Budapest accused Kyiv of stalling on repairs in an escalating row.
Tensions have ratcheted up between the neighbours over the pipeline. Hungary's Prime Minister Viktor Orban invoked the issue to block a 90-billion-euro ($104 billion) loan to Ukraine as well as new sanctions on Russia.
Writing to President Volodymyr Zelensky, von der Leyen and European Council head Antonio Costa voiced hope the pipeline's "rapid repair" would allow the bloc to move forward "in a timely manner" with the EU loan and sanctions package.
"The EU has offered Ukraine technical support and funding. The Ukrainians have welcomed and accepted this offer," she said in a statement, released with the letter and Zelensky's reply.
"European experts are available immediately," she said.

'No oil, no money'

Orban said his position remained unchanged, adding he had spoken with Costa and Slovak Prime Minister Robert Fico, whose country also received supplies through the pipeline.
"If President Zelensky wants to get his money from Brussels, then the Druzhba pipeline must be reopened," Orban said in a Facebook video. "No oil, no money," he added.
Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
Ukraine had been resisting the EU offer to help get oil flowing again. Zelensky called it "blackmail" to link the pipeline issue with support for its war effort against Russia's invasion.
But the letters published Tuesday showed the Ukrainian leader relenting, as the EU dialed up pressure for a resolution.
Zelensky said he accepted the "necessary technical support and funding to be able to conclude the repair work" on the pipeline, and would ask the chief of Ukraine's state oil and gas firm Naftogaz to "take this forward" with the EU.
EU leaders are to hold a summit on Thursday.
The Middle East war has seen countries worldwide search for for ways to release more oil supplies onto the market to ease prices.
Orban, Russian President Vladimir Putin's closest ally in the EU, has urged the 27-nation bloc to suspend sanctions on Russian oil and gas to counter rising prices.
The pipeline dispute has also come as the nationalist Hungarian leader ramps up political attacks on Ukraine ahead of a closely fought legislative election on April 12.
ec/ub-mg-jza/tw

Fed

US Fed expected to keep rates steady as Iran war impact looms

BY ASAD HASHIM

  • The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
  • The US Federal Reserve opened its two-day meeting on Tuesday with policymakers expected to keep interest rates unchanged as they digest weak economic data and gauge the economic effects of the Iran war.
  • The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
The US Federal Reserve opened its two-day meeting on Tuesday with policymakers expected to keep interest rates unchanged as they digest weak economic data and gauge the economic effects of the Iran war.
The central bank's rate-setting Federal Open Market Committee (FOMC) began its gathering at 10:30 am Eastern time (14:30 GMT), a central bank spokesperson said.
The meeting comes as the Fed battles stubbornly high inflation and weak demand in the US labor market, with its dual mandates potentially at odds with one another.
The US-Israel war on Iran, launched on February 28, is also expected to have major economic implications, with oil prices surging and supply chains disrupted.
Rising oil prices are expected to have knock-on global inflationary effects, including in the United States, where price increases have remained above the Fed's long-term two-percent target for years.
US average gasoline prices have increased around 27 percent since the start of the war, according to the AAA motor club's gauge.
Analysts have also warned of the conflict causing supply chain disruptions and oil shortages that will drag down economic growth.
Central banks tend to ignore the inflation effects of short-term price shocks, but it is unclear how long the war in Iran will drag on.
US households have been battered by years of higher-than-expected inflation after the Covid pandemic.
In January, the Fed's preferred inflation gauge came in at 2.8 percent, with core inflation rising by 3.1 percent, its highest level since March 2024.
The US labor market has also shown weakness in recent months, with unemployment ticking up in February due to weak labor demand.
Last week, there was more bad news, with new data showing the US economy grew at a significantly slower pace than initially estimated for the final months of 2025.
The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
Before the war, a rate-cut was expected as soon as the summer, with another possible later in the year.
On Tuesday, CME's FedWatch tool showed expectations of just one rate cut by the end of the year, likely coming after September. 
The Fed cut rates at three consecutive meetings late last year, but they remain above levels that US President Donald Trump has demanded.
Trump has repeatedly insulted and criticized Fed Chair Jerome Powell, and attempted to unseat another Fed Governor. 
Last week, a Department of Justice investigation into Powell over cost overruns related to Fed building renovations ran into an obstacle when a federal judge quashed subpoenas in the case.
Powell's term as Fed chair ends in May, making this his penultimate meeting.
Trump has nominated Kevin Warsh to replace him, but he has yet to be confirmed by the Senate. 
aha/dw

animal

Two men in Kenyan court for ant-smuggling

  • Kequn, born in 1998 according to court documents, appeared alongside Kenyan national Charles Mwangi, 35, accused of selling him 1,300 ants for 100 Kenyan shillings ($0.77) each. 
  • Two men appeared in a Nairobi court on Tuesday accused of attempting to smuggle thousands of ants to China, a lucrative trade exposed last year in the east African country. 
  • Kequn, born in 1998 according to court documents, appeared alongside Kenyan national Charles Mwangi, 35, accused of selling him 1,300 ants for 100 Kenyan shillings ($0.77) each. 
Two men appeared in a Nairobi court on Tuesday accused of attempting to smuggle thousands of ants to China, a lucrative trade exposed last year in the east African country. 
Chinese national Zhang Kequn was arrested at Nairobi's Jomo Kenyatta International Airport last week with more than 2,200 ants, including 1,948 of the sought-after Messor cephalotes species, in his luggage. 
The insects are considered aphrodisiacs, delicacies and pets, said defence lawyer David Lusweti Namai. 
Messor cephalotes ants are particularly prized and can fetch around $100 each abroad. 
Kequn, born in 1998 according to court documents, appeared alongside Kenyan national Charles Mwangi, 35, accused of selling him 1,300 ants for 100 Kenyan shillings ($0.77) each. 
Mwangi was arrested on March 13 in the Rift Valley in possession of 1,000 live ants of an unspecified species and 113 Messor cephalotes ants hidden in syringes. 
He is accused of also selling ants to three people convicted for the same crime last year.  
That case involved two Belgian teenagers, who were arrested in possession of nearly 5,000 ants, mostly stored in test tubes. They were fined roughly $7,700. 
Kequn and Mwangi, who pleaded not guilty, are being prosecuted for wildlife trafficking without a permit and conspiracy, and face up to seven years in prison, according to their lawyer. 
The next hearing is on March 27.
jcp/jf/er/kjm

US

War fuels fears of new oil crisis

BY MARTINE PAUWELS

  • - What is an oil crisis?
  • Attacks on oil infrastructure in the Gulf region and soaring oil prices are raising the spectre of a new oil crisis, although economists say we’re not quite there just yet.
  • - What is an oil crisis?
Attacks on oil infrastructure in the Gulf region and soaring oil prices are raising the spectre of a new oil crisis, although economists say we’re not quite there just yet.

What is an oil crisis?

An oil shock is generally understood to mean a  supply shortage that sparks a sharp rise in oil prices and consequently a negative impact on global economic growth, although there is no single definition.
The world is currently experiencing an energy price shock, but "it may be a bit too early to call it a true oil shock" such as those of 1973 or 1979, Helene Baudchon, deputy chief economist at BNP Paribas, told AFP in an interview.
"Supply constraints today are less severe" than some fifty years ago and remain concentrated around the Strait of Hormuz, through which one-fifth of global consumption of oil and liquefied natural gas typically passes.
Member states of the International Energy Agency have also decided to release 400 million barrels from their strategic reserves and the IEA says it is prepared to release more "if necessary."
Philippe Dauba-Pantanacce, global head of geopolitical analysis and senior economist with Standard Chartered Bank, notes that "hydrocarbon supply is much more geographically diverse than it was in the 1970s typically, electricity sources have also expanded with the renewables."
He added that "all of this is not to say that there won’t be consequences to the current oil supply shock, but there are many variables to take into consideration. We have revised our average for Brent to $85.50 for 2026, up from $70 before."
Additionally, global growth these days is less oil-intensive, requiring "four times less oil to generate one percentage point of GDP than in the 1970s," according to private bank Edmond de Rothschild.

Three oil shocks

- 1973: On October 16, ten days into an Egyptian and Syrian offensive against Israel, six Gulf region OPEC members hike oil prices by 70 percent, the first time the producers' cartel has pushed through a price rise without the agreement of oil companies.
OPEC imposes an embargo on Western countries deemed pro-Israel, triggering a price surge and a global oil crisis. In December, the price per barrel reaches $11.65, four times higher than in September. The price then quintuples a year later. The consequences for Western countries: higher prices at the pump, an inflationary spiral, recession -- and rising unemployment.
- 1979:The Islamic revolution in Iran and a halt in Iranian exports sees oil spike once more, hitting $40. In September 1980, the Iran-Iraq war brings further rises.
- 2008: From mid-2004, barrel prices rise strongly but progressively, against a backdrop of conflict in the Middle East and attacks in Iraq as well as social unrest in several producer states.
In August 2005 a barrel hits $70 after Hurricane Katrina hits oil industry infrastructure.  
In January 2008, prices surpass the symbolic threshold of $100, then soar again to $147 in July for what was dubbed the third oil shock, triggered by a combination of factors: strikes in Venezuela, unrest in Nigeria, and the war in Iraq.
That period also brought rising demand from emerging economies. Speculators were also singled out as a contributing factor.

Fears of a new shock

During major geopolitical crises, the spectre of a new oil shock resurfaced, with the price per barrel incorporating a "geopolitical risk premium," to reflect the probability that a conflict will cause a drop in supply. The possibility of such a shock resurfaced after the start of the war in Ukraine in February 2022, when the price per barrel surpassed $100, and after the war in Gaza, following the Hamas attack on Israel on October 7, 2023.
The current war in the Middle East is causing "the most significant disruption" to oil supplies in history, according to the International Energy Agency. The two global benchmarks for crude, Brent and WTI, are hovering around $100 per barrel, a surge of 40 to 50 percent since the start of the war against Iran which the United States and Israel launched on February 28.
Edmond de Rothschild notes that "there are very few alternatives to the Strait of Hormuz" for regional supplies. Storage capacity in producing countries are also reaching saturation, forcing production cuts.
bur-mpa/abb/cw/rl

US

Germany targets oil firms to prevent wartime price gouging

  • The Federal Cartel Office watchdog will be given more powers "to quickly investigate and stop price markups in the wholesale sector," she said. 
  • Germany said Tuesday its competition watchdog will soon get more powers to target energy firms over concerns they are unfairly hiking petrol prices to profit from the wartime oil shock.
  • The Federal Cartel Office watchdog will be given more powers "to quickly investigate and stop price markups in the wholesale sector," she said. 
Germany said Tuesday its competition watchdog will soon get more powers to target energy firms over concerns they are unfairly hiking petrol prices to profit from the wartime oil shock.
Global oil prices have surged as the Middle East war, pitting allies the United States and Israel against Iran, has led to the near total closure of the Strait of Hormuz to oil and gas tankers.
In Germany, "it is certainly notable that prices at gas stations have risen more sharply than the European average," Economy Minister Katherina Reiche told a press conference.
"The oil industry has not provided a particularly convincing explanation for this, and that is why we will take action."
The Federal Cartel Office watchdog will be given more powers "to quickly investigate and stop price markups in the wholesale sector," she said. 
The burden of proof will be shifted to energy companies, meaning they will have to prove they have acted lawfully by explaining how they came up with prices.
Currently, the cartel office has to provide evidence when they believe something is wrong with prices.
Reiche also confirmed that petrol stations will in future only be allowed to raise prices once a day, a measure she first mentioned last week.
A law introducing all the new measures should be passed by the end of this month or early April, Reiche said.
Germany is among countries tapping into its strategic oil reserves as part of the International Energy Agency's biggest-ever release -- 400 million barrels -- to combat rising global prices.
Reiche also said the government was considering setting up a strategic gas reserve for emergencies, with experts examining the idea and talks planned with potential operators.
Officials hope it will be up and running "as early as possible so that it can be in place by next winter", Reiche said.
sr/fz/gv

US

Strikes shake Tehran as Trump presses allies to help in Mideast war

BY AFP TEAMS IN TEHRAN, JERUSALEM, BEIRUT AND WASHINGTON

  • "They weren't supposed to go after all these other countries in the Middle East.
  • Loud explosions shook Tehran Tuesday after a night of bombing, as US President Donald Trump pressed allies to help in the war that has engulfed the Middle East and sparked global economic turmoil.
  • "They weren't supposed to go after all these other countries in the Middle East.
Loud explosions shook Tehran Tuesday after a night of bombing, as US President Donald Trump pressed allies to help in the war that has engulfed the Middle East and sparked global economic turmoil.
Oil prices rose more than five percent Tuesday after several countries pushed back on Trump's demand they help protect shipping in the Strait of Hormuz, a waterway that is key to the transit of crude and liquefied natural gas.
The war, now in its third week, has killed hundreds and seen Iran launch retaliatory strikes against Israel and Gulf nations, as well as a front opening in Lebanon with Israel battling Hezbollah.
Iraq, long a proxy battleground between the United States and Iran, has also been drawn in, with a drone and rocket attack targeting the US embassy in Baghdad on Tuesday.
Blasts were heard in Iran's capital Tehran, an AFP journalist said, after a night of heavy bombardment mixed with thunder and rain.
It was not immediate clear what the targets were, but Israel's army said earlier it had launched a wave of strikes "against Iranian terror regime infrastructure across Tehran", as well as strikes in Lebanon.
Lebanese state media reported Tuesday that Israeli strikes at dawn hit a residential building in Beirut's southern suburbs, a stronghold of the Iran-backed armed group Hezbollah.
An AFP photographer saw firefighters tackling a blaze at the site of a strike, while rubble and debris were strewn across the road.
Millions of people have been displaced because of the war, notably in Lebanon and Iran, but the war also has also hit the world economy as oil prices surge.
Iran has targeted the energy facilities of its crude-producing neighbours, while its threats against tankers transiting the Strait of Hormuz all but closing the vital waterway.
A fifth of global crude oil passes through the Strait and Trump has called on world powers, including US allies, to send warships to escort tankers -- so far in vain.
- Armada to Hormuz  - 
On Monday, Trump demanded US allies join quickly and with "great enthusiasm" an armada to escort tankers through the strait.
He has warned that it would be "very bad" for the future of the NATO military alliance if the allies refused to help.
British Prime Minister Keir Starmer said London was working with allies to craft a "viable" plan to reopen the strait, but ruled out a NATO mission.
Berlin also said it "has been clear at all times that this war is not a matter for NATO".
Japan, Australia, Poland, Spain, Greece and Sweden also distanced themselves from any military involvement in the Strait of Hormuz.
EU foreign ministers discussed the war in Brussels on Monday but showed "no appetite" for extending their Red Sea naval mission to help reopen Hormuz, the bloc's top diplomat said.
Analysts said it was not surprising that America's partners were unenthusiastic about joining a war they were not consulted on, after a year of tensions with Washington on everything from tariffs to Greenland.
The United States had "launched a war without consulting allies, expecting them to mop up the mess, and that's not going fly", said Erwan Lagadec of George Washington University's Elliott School of International Affairs.

Defiant tone

Trump on Monday admitted he was "shocked" at Iran's response to the US-Israel attacks.
"They weren't supposed to go after all these other countries in the Middle East. Those missiles were set to go after them," he said.
"So, they hit Qatar, Saudi Arabia, UAE, Bahrain, Kuwait. Nobody expected that. We were shocked."
The oil-rich Gulf has borne the brunt of Iran's attacks in response to US-Israeli strikes, with Tehran targeting US assets but also civilian infrastructure.
Falling debris from a missile intercept killed one person on Tuesday in the Emirati capital of Abu Dhabi.
More than 1,200 Iranians have been killed by US and Israeli strikes, according to the last toll from Iran's health ministry on March 8, which could not be independently verified.
But Iran's foreign minister struck a defiant tone on Monday. 
"By now they have... understood what kind of nation they are dealing with," Abbas Araghchi told reporters in Tehran.
Iran, he said, "does not hesitate to defend itself and is ready to continue the war wherever it may lead, and take it as far as necessary".

Iraq drawn in

Western allies Canada, France, Germany, Italy and the United Kingdom also urged Israel to show restraint in Lebanon, where it has announced "limited" ground operations against Hezbollah.
But Israel's President Isaac Herzog told AFP that Europe should support "any effort to eradicate Hezbollah now".
Authorities in Lebanon have said more than one million people have registered as displaced since March 2, with more than 130,000 people staying in upwards of 600 collective shelters.
Lebanon was drawn into the war when Tehran-backed Hezbollah militants struck Israel over the killing of Iranian supreme leader Ayatollah Ali Khamenei on the first day of the conflict.
Iraq is also increasingly being pulled in.
A drone and rocket attack targeted the US embassy in Baghdad early Tuesday, while a strike killed four people at a house reportedly hosting Iranian advisors, security officials said.
An AFP journalist reported seeing black smoke rising after an explosion in the embassy complex, as well as air defences intercepting another drone.
burs-ar/ser

US

Cash handouts, fare hikes as Philippines battles soaring fuel costs

BY PAM CASTRO

  • "These are the highest fuel prices I've ever experienced," said Romeo Cipriano, who has driven a tricycle for four decades.
  • Hundreds of Philippine tricycle drivers lined up Tuesday in Manila for cash handouts they hope will provide temporary relief from a war-driven surge in fuel prices that has left the country scrambling for short-term answers.
  • "These are the highest fuel prices I've ever experienced," said Romeo Cipriano, who has driven a tricycle for four decades.
Hundreds of Philippine tricycle drivers lined up Tuesday in Manila for cash handouts they hope will provide temporary relief from a war-driven surge in fuel prices that has left the country scrambling for short-term answers.
Since US-Israeli strikes on Iran triggered the Middle East war last month, the archipelago nation has implemented a four-day work week for civil servants, seen ferry schedules reduced in some areas, and begun eyeing the possibility of Russian oil imports. 
As the drivers awaited their handouts Tuesday, officials unveiled a series of price hikes across a range of local transportation, including the ubiquitous smoke-belching jeepneys millions of Filipinos rely on to get to work each day.
But the increases did not extend to the country's hundreds of thousands of tricycle drivers, who earn money by carrying passengers down narrow, winding alleys on small motorbikes and carriages.
"These are the highest fuel prices I've ever experienced," said Romeo Cipriano, who has driven a tricycle for four decades.
The subsidy of 5,000 pesos ($84) would be "better than nothing", the 60-year-old said, describing how he had arrived at 6:00 am to avoid standing in the tropical heat, something his high blood pressure would not allow.
Al de Ocampo said his daily earnings had been halved from 1,000 to just 500 pesos in recent weeks.
The handout he received would last no more than a week, he told AFP.
"The price of fuel rose again today, but the fare is still the same," with customers unable to afford to pay any more, de Ocampo said.
"They must remove the fuel tax if possible... If they can't remove the tax entirely, then reduce it 50 percent. That would be a great help until the end of the war."
The Senate was expected to vote later in the day to grant President Ferdinand Marcos, who was on hand for the subsidy dispersal, the authority to temporarily suspend or reduce excise taxes on oil.
At a press briefing on Tuesday, Vigor Mendoza, chair of the country's transportation regulator, announced fare hikes that he said were "proof of... genuine concern" for both commuters and the embattled sector.
Most rides in jeepneys, the backbone of the country's transport system, were set to jump about eight percent on average, the regulator announced.
The Philippines, which depends almost entirely on the Middle East for its crude oil, is now also eyeing the possibility of purchasing from Russia, after a temporary easing of US restrictions on some oil sales following the closure of the Strait of Hormuz.
On Tuesday, Ramon Ang, CEO of the Philippines' sole oil refiner Petron, confirmed to AFP the company was "in talks" to potentially purchase Russian oil, while declining to provide details.
Patiently awaiting his subsidy at the Manila community centre, Cipriano said he could only pray for a quick end to the war.
"We're not the only ones affected," he said of his fellow drivers.
"No one wins in war."
pam-cwl/mjw

US

Indonesia weighs response to price pressures from Middle East war

BY MARIëTTE LE ROUX

  • According to Capital Economics, a London-based consultancy, the government allocated 381 trillion rupiah to energy subsidies for 2026, about 1.5 percent of GDP. The figure was premised on oil costing $70 per barrel (pb), but prices have topped $100 pb since Israel and the United States attacked Iran last month, plunging the Middle East into war.
  • Price pressures fuelled by the Middle East war may push Indonesia's government to reconsider its dogged defence of energy subsidies and a costly meals scheme close to the heart of President Prabowo Subianto, analysts say.
  • According to Capital Economics, a London-based consultancy, the government allocated 381 trillion rupiah to energy subsidies for 2026, about 1.5 percent of GDP. The figure was premised on oil costing $70 per barrel (pb), but prices have topped $100 pb since Israel and the United States attacked Iran last month, plunging the Middle East into war.
Price pressures fuelled by the Middle East war may push Indonesia's government to reconsider its dogged defence of energy subsidies and a costly meals scheme close to the heart of President Prabowo Subianto, analysts say.
Unlike many of its neighbours, Southeast Asia's biggest economy has not seen long fuel queues as global oil prices have soared, nor have its citizens been subjected to pandemic-style work-from-home measures.
But that may change.
As Prabowo seeks to raise the economic growth rate from 5.1 percent last year to eight percent by 2029, powered by high public spending, Jakarta has limited options for offsetting the impact of rising oil prices, according to experts.
It can either cut fuel subsidies and risk political upheaval, slash spending on Prabowo's signature school meals programme, or overshoot the fiscal deficit that is capped by law at three percent of GDP.
"We are already in a critical situation," with fuel and natural gas supplies at about three weeks' worth -- the maximum storage capacity -- and a dearth of new suppliers to offset the Middle East blockage, said Yose Rizal Damuri, executive director of Indonesia's Centre for Strategic and International Studies.
He said the government may have no choice but to cut its fuel subsidy, which covers about 30 to 40 percent of the cost for consumers and represents around 15 percent of the budget.
"The government can also consider making fiscal space by reducing... the free meal programme," Yose told AFP.
The scheme, which consumes nearly a tenth of the annual budget, aims to feed millions of Indonesian schoolchildren and pregnant women in a bid to reduce stunting and boost the nation's human capital, but has been criticised for logistical inefficiencies and food safety concerns.
The meals programme was Prabowo's most popular campaign promise, and he has repeatedly vowed to keep it in place.
Yose said the government could save as much as 100 trillion rupiah ($5.9 billion) by restricting the scheme to areas of the country where it is needed most.

Sharing the burden

Indonesia, which produces about half the oil it consumes, heavily subsidises fuel, electricity and natural gas consumed domestically.
According to Capital Economics, a London-based consultancy, the government allocated 381 trillion rupiah to energy subsidies for 2026, about 1.5 percent of GDP.
The figure was premised on oil costing $70 per barrel (pb), but prices have topped $100 pb since Israel and the United States attacked Iran last month, plunging the Middle East into war.
Finance Minister Purbaya Yudhi Sadewa has said an oil price of $92 pb would see Indonesia's deficit rise to 3.6 percent of GDP.
"If the budget really can't handle it anymore, then there's no other way than sharing the burden with the public to some extent," he told reporters.
Past fuel price rises have led to riots.
Yose said fuel price cuts were more likely than any decision in the near term to raise the fiscal deficit, which would require a change to the law or a presidential decree.
Bloomberg reported on Monday that the Jakarta Composite Index of share values dropped to an eight-month low over concerns the cap would be raised if oil prices stay high.
But Capital Economics said a breach of the deficit cap "should create little concern" about Indonesia's immediate fiscal health.
"Government debt is low, at around 40 percent of GDP," it said in a statement.
- 'Proactive measures' - 
Last Friday, Prabowo took stock of the economic situation with his cabinet, stating: "We must now also take proactive measures, meaning we must conserve fuel."
"If some civil servants and officials do not need to come to the office, it would reduce traffic congestion and generate substantial savings," said the president.
"We must also consider cutting working days."
The Fitch ratings agency this month downgraded Indonesia's credit outlook to negative, citing "rising policy uncertainty".
The central bank insists growth prospects remain "solid" and says the country has sufficient foreign currency reserves.
bur-mlr/abs/mjw

semiconductors

Nvidia chief expects revenue of $1 trillion through 2027

  • "I see, through 2027, at least a trillion dollars (in revenue)," Huang said.
  • Nvidia chief Jensen Huang on Monday said he expects the artificial intelligence chip powerhouse to bring in at least a trillion dollars in revenue through next year.
  • "I see, through 2027, at least a trillion dollars (in revenue)," Huang said.
Nvidia chief Jensen Huang on Monday said he expects the artificial intelligence chip powerhouse to bring in at least a trillion dollars in revenue through next year.
Huang made the ramped-up revenue forecast while outlining Nvidia's latest innovations for a packed audience at the opening of its annual developers conference in Silicon Valley.
"I see, through 2027, at least a trillion dollars (in revenue)," Huang said.
"I am certain that computing demand will be higher than that."
A year earlier, at the same event, Huang had projected revenue of half that much.
The revenue is expected to be driven by demand for its premium graphics processing units (GPUs), which Huang touted as delivering high performance while reining in the cost of delivering AI services.
Huang contended that demand for computing power has increased "a million-fold" in just two years and shows no sign of abating. 
He went on to show Nvidia's latest innovations when it came to GPU's and platforms for building AI into nearly everything, from robots and apps to data centers orbiting the planet.
Nvidia is tailoring its technology for "agentic" AI and training models, as well as inferencing -- in which AI makes deductions or generates content, demonstrations showed.
The entire tech world -- from big names like OpenAI and Anthropic to young startups -- feels like they could grow revenue and their AI "if they could just get more capacity," Huang told the audience.
Nvidia is aiming its AI expertise at seemingly all sectors from automobiles to health care.
"Every single enterprise company, every single software company in the world needs an AI agent strategy," Huang said.
"This is going to become a multi trillion-dollar industry, offering not just tools for people to use, but agents that are specialized," he added.
gc-bl/jgc

US

Middle East war: global economic fallout

  • IEA members agreed on March 11 to tap oil stockpiles to cushion the surge in prices caused by the war -- by far the largest-ever response of its kind.
  • Here are the latest economic events in the Middle East war on Monday: - Stocks rise as oil prices cool - Global markets mostly rose as oil prices pulled back, with investors focused on the Strait of Hormuz, the Gulf waterway through which a fifth of global crude oil passes, where traffic has been severely disrupted by the war.
  • IEA members agreed on March 11 to tap oil stockpiles to cushion the surge in prices caused by the war -- by far the largest-ever response of its kind.
Here are the latest economic events in the Middle East war on Monday:

Stocks rise as oil prices cool

Global markets mostly rose as oil prices pulled back, with investors focused on the Strait of Hormuz, the Gulf waterway through which a fifth of global crude oil passes, where traffic has been severely disrupted by the war.
International benchmark Brent North Sea crude dropped 2.8 percent to $100.21, while the main US contract West Texas Intermediate fell 5.3 percent to $93.50.

Drone strike sparks UAE oil field fire

A drone strike caused a fire at a major oil field in the United Arab Emirates, authorities said, as Iran continued its drone and missile strikes across the Gulf.
The Shah oil field, located 230 kilometres (143 miles) south of Abu Dhabi city, has a production capacity of approximately 70,000 barrels of crude oil per day, according to the UAE's state-owned energy giant ADNOC.

Drone attack targets Iraqi oil field

Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.
Majnoon oil field was "targeted by two drones, one hit a telecommunication tower," oil ministry spokesperson Saheb Bazoun said, adding that there had been no damage.
A security official confirmed the attack and said the second drone had targeted the offices of an American firm operating at the site.

Pakistani tanker transits Hormuz

A Pakistani oil tanker transited the Strait of Hormuz with its automatic transponder system activated, monitor Marine Traffic said, the first such voyage by a non-Iranian tanker since the start of the war.
Marine Traffic said on X that the 237-metre-long Pakistani-flagged oil tanker had a draft of 11.5 metres, indicating it was heavy and likely loaded.

IEA hints at more releases

International Energy Agency chief Fatih Birol said more strategic oil stocks could be released if necessary to limit the fallout of the virtual blockage of supplies through the Strait of Hormuz owing to the war on Iran.
"In terms of government stocks and industry stocks held under government obligation, if you combine them, there will be still over 1.4 billion barrels remaining, which means we can do more later as and if needed," Birol said in a video statement.

UAE's ADNOC 'suspends' loading oil at Fujairah terminal

The UAE's state-owned energy giant ADNOC halted the loading of oil into storage tanks at their Fujairah facility, a source with knowledge of the operations told AFP Monday, following repeated strikes on the energy installation.
Fujairah is home to a major port where Iranian attacks have already targeted oil storage tanks. The port is also home to a key oil export terminal just at the entrance of the Strait of Hormuz.

Iraq hopes to revive pipeline

Iraq is hoping to ship up to 250,000 barrels of oil per day to a port in Turkey via a rehabilitated pipeline that has been out of service for years, its oil minister said, after the US-Israeli war on Iran cut off its main export route.
The amount would be just a fraction of the roughly 3.5 million barrels per day (bpd) that Iraq exported before the conflict, mostly through its southern Basra port and the Strait of Hormuz.

Japan starts releasing oil stocks

Japan said it was beginning the release of its strategic oil reserves after the International Energy Agency indicated earlier that the release would begin in Asia and Oceania before other regions.
IEA members agreed on March 11 to tap oil stockpiles to cushion the surge in prices caused by the war -- by far the largest-ever response of its kind. The IEA said releases in Europe and North America would start before the end of March.
burs-rl-bys/sla

Israel

Migrant workers bear brunt of Iran attacks in Gulf

BY ANJANA SANKAR

  • Since February 28, Tehran has launched wave after wave of missile and drone attacks against the Gulf states in retaliation for US and Israeli strikes on Iran. 
  • Bangladeshi migrant Ahmad Ali, 55, was doing his regular round delivering drinking water to residents in the United Arab Emirates when Iran launched its first retaliatory attacks against Gulf countries.
  • Since February 28, Tehran has launched wave after wave of missile and drone attacks against the Gulf states in retaliation for US and Israeli strikes on Iran. 
Bangladeshi migrant Ahmad Ali, 55, was doing his regular round delivering drinking water to residents in the United Arab Emirates when Iran launched its first retaliatory attacks against Gulf countries.
Debris from a missile strike tore through his delivery van, killing him instantly and ending his three decades spent in the Emirates.
"My dad told my cousin he would be back soon," Ali's son Abdul Hoque said from Barlekha in eastern Bangladesh. "But those were his last words. He died instantly when his van was hit."
Since February 28, Tehran has launched wave after wave of missile and drone attacks against the Gulf states in retaliation for US and Israeli strikes on Iran. 
In a region home to more than 35 million migrant workers, mostly from South Asia, many of those killed have been foreign labourers filling the lowest-paid roles in Gulf economies.
Among fourteen civilians killed in the Gulf since the conflict began, according to an AFP tally, eight were foreign nationals from Pakistan, Nepal, Bangladesh and India.
And while some wealthy residents have been able to leave the Gulf, migrant workers remain among the most vulnerable during the conflict.
For many workers, leaving is not an option having borrowed to pay recruitment agents for visas and jobs abroad and with families at home dependent on the remittances they send.

'Don't know why'

"My father was a hard-working man doing a respectable job," Hoque said. "We don't know why he had to die."
After nearly three decades in the UAE, Ali had recently begun building a house in Bangladesh, a dream shared by many migrant workers in the Gulf.
"That dream has ended with his death," Hoque said. "My mother and my three siblings are still in shock."
Pakistani migrant Murib Zaman Nizar, 44, was another victim in the UAE, killed on February 28 in Abu Dhabi when debris from an intercepted drone fell on his car.
A father of five children aged between four and 12, Nizar worked as a driver for a family in the Emirati capital.
"My brother was washing the car inside the compound when the accident happened," Murib's brother Muhammad Khan told AFP by phone from their hometown of Bannu in Pakistan's northwestern Khyber Pakhtunkhwa province.
"He was a family man who wanted to give the best life to his five children. And now he is gone," said Khan, who also works in the UAE as a construction worker.

'Emotionally shut'

With no immediate sign of de-escalation, several Gulf countries have shifted to remote work and online schooling as repeated alerts and the sounds of air defence interceptions fuel anxiety among residents but migrant workers continue their daily lives outside.
"We are trying to stay calm and continue working as usual," said Binoy, an Indian engineer in Dubai who asked that his full name not be used.
A resident of Mohammed Bin Zayed City on the outskirts of Abu Dhabi, Binoy said the frequent explosions from interceptions are unsettling.
"We know they are interceptions, but it is still worrying," he said. 
A Filipino nurse in Dubai who asked to be identified as Jane said she continues to report to work while trying to "emotionally shut out" the constant noise.
"Two days ago, I was walking home early in the morning after my night shift when I heard loud booms," she said. "I kept walking. What else can we do?"
Jane, who has lived in the UAE for seven years, said her two children aged seven and ten call her frequently.
"They are scared after watching the news on TV. I keep reassuring them that everything is safe here."
str/csp/dc

AI

Nvidia rides 'claw' craze with AI agent platform

  • The chipmaker unveiled tools designed to add security and privacy controls to these AI agents, called "claws," that run directly on a person's computer and execute complex tasks without constant human oversight. 
  • Nvidia announced Monday that it was joining the OpenClaw craze, unveiling tools to bring AI agents -- which can manage your email, files and calendar while you sleep -- into the corporate world.
  • The chipmaker unveiled tools designed to add security and privacy controls to these AI agents, called "claws," that run directly on a person's computer and execute complex tasks without constant human oversight. 
Nvidia announced Monday that it was joining the OpenClaw craze, unveiling tools to bring AI agents -- which can manage your email, files and calendar while you sleep -- into the corporate world.
OpenClaw has taken Silicon Valley and tech-savvy users across the globe by storm, sparking "lobster fever" in reference to its red crustacean mascot, with many of the biggest names in tech convinced the AI agent is redefining computing. 
But security concerns have dogged its rise, prompting the Chinese government to block state enterprises from using the tool. Nvidia is betting it can address those fears.
"Mac and Windows are the operating systems for the personal computer. OpenClaw is the operating system for personal AI," Nvidia's chief executive Jensen Huang said in a statement.
"This is the moment the industry has been waiting for -- the beginning of a new renaissance in software," he added.
The chipmaker unveiled tools designed to add security and privacy controls to these AI agents, called "claws," that run directly on a person's computer and execute complex tasks without constant human oversight. 

Stunning success

Unlike ChatGPT or other chatbots that simply answer questions, claws act independently and around the clock and can even be asked to create apps or programs from scratch.
The craze traces back to a weekend coding project by Austrian developer Peter Steinberger, who has since been hired by OpenAI. 
In late 2025 he released a self-hosted AI assistant called Clawdbot -- a nod to Anthropic's Claude chatbot -- that could be messaged through WhatsApp or Telegram and would quietly get to work on tasks in the background.
The response was immediate and overwhelming, with developers reporting they had stayed up all night finding new ways to exploit the tool, which can also be asked to write standalone software programs from simple text prompts. 
After Anthropic filed a trademark infringement complaint, Steinberger renamed the project twice in quick succession, landing on OpenClaw.
The rebranding chaos generated only more headlines, and within months it had become the fastest-adopted open-source project in history.
But the technology's explosive spread has alarmed security researchers and corporate IT departments wary of employees inadvertently exposing company systems to hackers or causing disruption. 
Several technology heavyweights have barred staff from running claw agents on work machines, and China's government has restricted state enterprises from using the platform over data security fears.
Nvidia, the world's most highly values company on Wall street, is seeking to turn those concerns to its advantage. 
The company launched the Nvidia Agent Toolkit -- a suite of open-source models and software for building enterprise AI agents -- anchored by a new security layer called OpenShell that enforces network and privacy guardrails.
Adobe, Salesforce, SAP and Siemens are among the major software companies that said they are building on Nvidia's new platform.
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US

Securing the Strait of Hormuz: Tactics and threats

  • Trump added that Washington did not know if any mines had actually been placed in the Strait of Hormuz by Iran.
  • President Donald Trump is pressuring allies to help secure the Strait of Hormuz, a key maritime choke point that has effectively been closed by Iran in response to the US-Israeli war launched last month.
  • Trump added that Washington did not know if any mines had actually been placed in the Strait of Hormuz by Iran.
President Donald Trump is pressuring allies to help secure the Strait of Hormuz, a key maritime choke point that has effectively been closed by Iran in response to the US-Israeli war launched last month.
Trump highlighted the dangers in remarks on Monday, noting that a "single terrorist" could "put something in the water" or shoot a missile at ships transiting the narrow waterway bordering the Islamic republic.
Trump said a number of countries that he did not specify had committed to help, while taking aim at others that were not "enthusiastic" about doing so.
AFP examines how an escort mission could work, and the threats to vessels in the strait.

Escorting ships

In an escort mission, navy ships would seek to provide cover for tankers going through the Strait of Hormuz and also respond if the commercial ships were fired upon, said Jonathan Schroden, chief research officer at the Center for Naval Analyses, near Washington.
"They would try to do it in more of a convoy kind of manner... where you muster up a handful of tankers and then you have one or several navy ships escort them through," he said.
Smaller vessels such as destroyers and frigates would be best suited for the mission, which could also involve air cover from helicopters, fixed-wing aircraft, or both.
"Navy surface ships with some degree of air support would be primarily how you would do that," Schroden said.

Mines

The US Navy escorted tankers through the Gulf to protect them from Iranian attacks during the Iran-Iraq war in the 1980s. Mines were a threat during that operation -- dubbed Earnest Will -- and could be again.
Trump said Monday that the United States had hit all of Iran's mine-laying ships -- destroying more than 30 of them -- but that the mines could be transferred to other vessels for deployment. 
Schroden also noted that Iran had "multiple means of putting (mines) into the water."
Trump added that Washington did not know if any mines had actually been placed in the Strait of Hormuz by Iran.

Missiles, drones, boats

Washington says Iran's navy has largely been destroyed, but Tehran has missiles, drones and small attack vessels that could also be used to threaten maritime traffic in the Strait of Hormuz.
Iran's "small boats and fast attack craft... have a variety of armaments on them that they could launch to try and... hit tankers or navy ships at a surface level," Schroden said.
They also have "a whole host of missiles that they can bring to bear. And then they have... Shahed drones and other drones that they manufacture that they could also employ," he said, referring to Iran's extensive arsenal of one-way attack drones.
"They have a wide variety of threats that they can bring to bear," Schroden added.
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