Global Edition

Oil slips, stocks rise as report says Trump willing to end war

  • - 'De-escalation and re-escalation' - In a sign Iran was determined to keep control of Hormuz, state media reported Monday that a parliamentary commission had approved plans to impose tolls on vessels transiting it.
  • Oil prices sank and most stocks rose Tuesday, following a report that indicated Donald Trump was willing to end the Iran war even if the key Strait of Hormuz remained closed.
  • - 'De-escalation and re-escalation' - In a sign Iran was determined to keep control of Hormuz, state media reported Monday that a parliamentary commission had approved plans to impose tolls on vessels transiting it.
Oil prices sank and most stocks rose Tuesday, following a report that indicated Donald Trump was willing to end the Iran war even if the key Strait of Hormuz remained closed.
But investors remain wary as the Wall Street Journal story came on the same day the US president threatened to destroy Iran's key oil export hub and desalination plants unless it accepts a deal, while also suggesting diplomacy was making headway.
The news comes as governments around the world scramble to implement measures to ease the burden of surging fuel prices while also looking to conserve energy, with one-fifth of global crude and gas passing through the waterway.
The Journal, citing administration officials, said Trump and his aides had come to the conclusion that a mission to reopen the waterway would extend the length of the mission past his four- to six-week timeline.
It added that he had decided to focus on battering Iran's missiles and navy, before looking to pressure Iran diplomatically to reopen the Strait.
Both main oil contracts fell Tuesday, though West Texas Intermediate and Brent were still sitting well above $100 a barrel.
And most equity markets rose. Hong Kong, Shanghai, Sydney, Singapore, Wellington and Jakarta were all up, while Tokyo fluctuated.
Seoul, Taipei and Manila fell.
However, Trump also threatened Monday to destroy Kharg Island, through which most of Iran's crude passes, if a peace deal is not reached.
He warned US forces would destroy "all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)."
Destroying civilian infrastructure could constitute a war crime, experts say.
Iran has previously threatened to retaliate by targeting energy infrastructure and desalination plants in its Arab neighbours that host the US military, fanning fears of a wider conflict.
But Trump also said officials were speaking to a "more reasonable regime" in Tehran, which has denied any talks and accused the president of lying about negotiations as cover while preparing a ground invasion.
US Secretary of State Marco Rubio voiced hope for working with elements within Iran's government.
Market experts warned that any US ground operation or wider Iranian retaliation could send oil prices to levels not seen since July 2008, when Brent hit almost $150 a barrel.

'De-escalation and re-escalation'

In a sign Iran was determined to keep control of Hormuz, state media reported Monday that a parliamentary commission had approved plans to impose tolls on vessels transiting it.
With Trump flipping between hope for talks and threats, analysts said investors were having to walk a tightrope.
"The market continues to be headline-driven as the Trump Administration has delivered a variety of messages surrounding de-escalation and re-escalation of the war in Iran," Wolfe Research's Chris Senyek said. 
With the war now in its fifth week, governments are moving to shore up their economies.
Economy ministers and central bankers from the G7 club of rich countries met in Paris to discuss the war's effects, with many countries introducing energy-saving measures or cutting fuel taxes to help consumers.
Dubai said it will provide support worth more than $270 million to help businesses and families, while Norway will temporarily cut diesel and petrol taxes and Bangladesh ordered civil servants to switch off lights and turn down air conditioning to save power. 
Sri Lanka announced a nearly 40 percent increase in electricity prices from Wednesday as it battles an energy shortage. Colombo has raised fuel prices three times this month, increasing them by more than a third, and has imposed a four-day working week in a bid to save energy.
"From here, the burden shifts from military outcomes to economic endurance. The question is no longer how high oil spikes, but how long elevated energy costs bleed into growth, margins, and consumption," said SPI Asset Management's Stephen Innes.
Federal Reserve boss Jerome Powell also provided a little support, saying Monday the bank could look past energy shocks because they "have tended to come and go pretty quickly" but monetary policy changes take time to flow through the economy.
While the spike in energy prices threatens to send inflation soaring again, he added that officials "feel like our policy is in a good place for us to wait and see how that turns out" and "inflation expectations do appear to be well-anchored beyond the short term".

Key figures at around 0230 GMT

Brent North Sea Crude: DOWN 1.3 percent at $106.04 a barrel
West Texas Intermediate: DOWN 0.7 percent at $102.22 a barrel
Tokyo - Nikkei 225: DOWN 0.1 percent at 51,820.30 (break)
Hong Kong - Hang Seng Index: UP 0.5 percent at 24,869.71
Shanghai - Composite: UP 0.3 percent at 3,935.05
Euro/dollar: UP at $1.1474 from $1.1460 on Monday
Pound/dollar: UP at $1.3207 from $1.3183
Dollar/yen: UP at 159.71 yen from 159.69 yen
Euro/pound: DOWN at 86.88 pence from 86.93 pence
New York - Dow: UP 0.1 percent at 45,216.14 (close)
London - FTSE 100: UP 1.6 percent at 10,127.96 (close)
dan/lb

US

Indonesia trims meals programme: what next?

BY MARCHIO GORBIANO

  • - Earlier this month, presidential spokesman Prasetyo Hadi said the government was seeking to set aside as much as 80 trillion rupiah to shield its economy from the Middle East fallout, without disclosing further details.
  • Indonesia will make cuts to its free school meals programme from Tuesday as it seeks to set aside billions of dollars to counteract budget pressures brought on by the Middle East war and soaring oil prices.
  • - Earlier this month, presidential spokesman Prasetyo Hadi said the government was seeking to set aside as much as 80 trillion rupiah to shield its economy from the Middle East fallout, without disclosing further details.
Indonesia will make cuts to its free school meals programme from Tuesday as it seeks to set aside billions of dollars to counteract budget pressures brought on by the Middle East war and soaring oil prices.
The programme, which feeds an estimated 60 million children and pregnant and breastfeeding women at a cost of nearly a tenth of the annual budget, is President Prabowo Subianto's signature project.
Here's what we know:
- What is being cut? - 
At a cabinet meeting over the weekend, ministers and Prabowo decided to trim the programme from six days per week to five in primary and secondary schools starting Tuesday.
In regions with high malnutrition rates, meals will remain available on Saturdays, when many Indonesian schools are open in Southeast Asia's biggest economy.
The move will save "around 40 trillion rupiah ($2.3 billion)," Nanik Sudaryati Deyang, deputy head of the government's National Nutrition Agency, told AFP on Sunday.
The cut may be reviewed if conditions change.
Launched in January 2025, the initiative was touted by the government as a way to tackle a malnutrition and stunting crisis in the country of 284 million people.
The program has a target of ultimately feeding 83 million people, but it has come under the spotlight after thousands of recipients contracted food poisoning.
- A harbinger of more to come? - 
The Indonesian government is also weighing options for curbing fuel consumption as the war in the Middle East has disrupted global energy supply.
The country produces crude but is a net importer of the commodity. It heavily subsidises fuel and natural gas for domestic consumers.
The government has so far defended the subsidy, which at $12.3 billion represents about five percent of the total annual budget for 2026.
Observers say the government's hand may be forced given that Indonesia is required by law to keep its fiscal deficit under three percent of gross domestic product.
The 2026 fuel subsidy calculation was premised on a global oil price of $70 per barrel, but prices have since topped $100.
Firman Noor, a political researcher with the government-funded National Research and Innovation Agency (BRIN), told AFP the cut to the meal programme "indicates that the pressure on our financial strength stemming from the war is already beginning to be felt".
"This is a warning that we must get prepared like other countries. And just be frank, we need an adjustment because we never know when the war will end, which will surely drive oil prices higher."
Previous subsidy cuts have led to mass riots.

Is it enough?

Earlier this month, presidential spokesman Prasetyo Hadi said the government was seeking to set aside as much as 80 trillion rupiah to shield its economy from the Middle East fallout, without disclosing further details.
Measures under consideration include ordering government workers to work from home one day per week, cutting back on official travel and encouraging bicycle, electronic car and public transport use to preserve valuable fuel.
Analysts said savings from trimming the free meals programme were not nearly enough if the government intends to meet its fiscal deficit limit.
"Without changes in big budget (programmes), I don't see steps taken by the government, such as cutting back on free meals from six to five days or one day work-from-home per week, as adequate to tackle" the widening deficit, said Deni Friawan, a researcher of the Centre for Strategic and International Studies (CSIS). 
mrc/mlr/lga/abs

US

Iran defiant as Trump threatens to destroy oil island

BY AFP TEAMS IN JERUSALEM, SANAA, WASHINGTON, TEHRAN, BEIRUT AND DUBAI

  • Trump warned that if a deal were not struck -- including to reopen the Strait of Hormuz -- US forces would destroy "all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)."
  • Iran fired new missiles early Tuesday as it vowed defiance against US President Donald Trump, who threatened to destroy the country's oil export hub of Kharg Island along with power and desalination plants unless Tehran quickly accepts a deal to end the war.
  • Trump warned that if a deal were not struck -- including to reopen the Strait of Hormuz -- US forces would destroy "all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)."
Iran fired new missiles early Tuesday as it vowed defiance against US President Donald Trump, who threatened to destroy the country's oil export hub of Kharg Island along with power and desalination plants unless Tehran quickly accepts a deal to end the war.
Israeli Prime Minister Benjamin Netanyahu, Trump's partner in attacking Iran, said more than half of his military aims had been achieved, but both leaders refused to put a timeline on an operation that has ignited a regional war and sent global oil prices soaring.
In Dubai, four people were injured in the early hours by falling debris of intercepted projectiles and a Kuwaiti oil tanker in the port caught fire, according to authorities in the financial hub whose reputation for stability has been shaken by over a month of war.
Saudi authorities said they intercepted eight ballistic missiles. Hours earlier, Iranian Foreign Minister Abbas Araghchi publicly called on Saudi Arabia to "eject US forces," saying Tehran otherwise respects the "brotherly" kingdom. 
Refusing to back down, an Iranian parliamentary committee voted to impose tolls on vessels in the Strait of Hormuz, the passageway through which one-fifth of global oil passes, and completely ban ships from the United States and Israel.
The strait had been open before the war, but Secretary of State Marco Rubio recently has spoken of building a "coalition" to oppose the Iranian tolling plan.
"No one in the world can accept it," Rubio told Al-Jazeera of the tolls.
"It sets an incredible precedent. So this means that nations can now take over international waterways and claim them as their own," Rubio said of the waterway the US president recently called the "Strait of Trump".
Trump said the United States was speaking to a "more reasonable regime" in Tehran, which has denied any talks and accused him of lying about negotiations as cover while readying a ground invasion.
Trump warned that if a deal were not struck -- including to reopen the Strait of Hormuz -- US forces would destroy "all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)."
Destroying civilian infrastructure would be illegal under international humanitarian law and could constitute a war crime, experts say.

Peacekeepers die in Lebanon

Israel has also relentlessly pounded Lebanon, including central Beirut, as it seeks to deliver a heavy blow to Hezbollah, the Iranian-backed force that had fired rockets in solidarity after Israeli forces killed Iran's supreme leader, Ali Khamenei.
The UN mission in Lebanon said that two Indonesian peacekeepers were killed when "an explosion of unknown origin destroyed their vehicle," with two other peacekeepers wounded, one seriously. Another Indonesian peacekeeper was killed on Sunday.
The Israeli military said early Tuesday that it had opened an investigation to determine if it or Hezbollah was responsible.
Before the latest war, Indonesia, the world's largest Muslim-majority country, had been preparing to send forces on a stabilization mission to ravaged Gaza following a ceasefire between Israel and Hamas.
France, a key player in Lebanon, condemned the deaths of the peacekeepers and called for an urgent UN Security Council meeting, which was subsequently scheduled for Tuesday at 14H00 GMT.
Economy ministers and central bankers from the G7 club of rich countries meanwhile met in Paris to discuss the war's consequences, with many countries introducing energy-saving measures or cutting fuel taxes to help consumers.
Market experts warned that any US ground operation or wider Iranian retaliation could send oil prices to levels not seen since the July 2008 commodity boom, when the cost of Brent crude, the international benchmark, hit close to $150 a barrel.
Brent has already risen nearly 60 percent this month, and the US benchmark WTI by more than half.
Adding pressure, Yemen's Iranian-backed Houthi rebels over the weekend fired missiles and drones at Israel, posing a threat to shipping on the Red Sea in addition to the Gulf.

Netanyahu claims success

Netanyahu said Israel had achieved key objectives including by "wiping out" industrial plants in Iran and coming "close to finishing their arms industry."
"It's definitely beyond the halfway point. But I don't want to put a schedule on it," Netanyahu told US broadcaster Newsmax.
The war, and the spiraling price of oil, has been unpopular in the United States, where Rubio again said Monday that it would last "weeks" more and not months.
Egyptian President Abdel Fattah al-Sisi, whose country is feeling the economic pinch and has been playing a key role mediating indirect talks, appealed directly to Trump to find an offramp.
"Please, help us to stop the war, you are capable of it," Sisi told a press conference. 
Trump has claimed to be in direct contact with senior Iranian figures whom he has not identified publicly.
Rubio said there were "fractures" within the Islamic republic and voiced hope that the Iranian officials allegedly in contact with Washington had the "power to deliver."
But Iranian foreign ministry spokesman Esmaeil Baqaei again denied any negotiations, saying the United States had sent only a request to talk via intermediaries including Pakistan.
After weeks of strikes, residents of Tehran painted a picture of a city that is still clinging to some routine, with cafes and restaurants open and no shortages reported in supermarkets or petrol stations.
Security remains tight, with checkpoints erected on streets around the capital.
"When I make it to a cafe table, even for a few minutes, I can almost believe the world hasn't ended," said Fatemeh, 27, a dental assistant.
"And then I go back home, back to the reality of living through war, with all its darkness and weight."
burs-sct/js

politics

Cubans ready for Russian oil but some say not enough

BY LISANDRA COTS

  • Mexican President Claudia Sheinbaum, whose country last sent crude to Cuba in January, said there have been talks with private firms about buying oil from Mexico's state-owned energy company and selling to private Cuban companies.
  • Cubans on Monday cautiously welcomed the imminent arrival of a Russian oil shipment, with some warning it would do little to ease an energy crisis after US President Donald Trump granted a reprieve from his oil blockade.
  • Mexican President Claudia Sheinbaum, whose country last sent crude to Cuba in January, said there have been talks with private firms about buying oil from Mexico's state-owned energy company and selling to private Cuban companies.
Cubans on Monday cautiously welcomed the imminent arrival of a Russian oil shipment, with some warning it would do little to ease an energy crisis after US President Donald Trump granted a reprieve from his oil blockade.
The Anatoly Kolodkin, a tanker under US sanctions carrying 730,000 barrels of crude, was due to arrive at the western port of Matanzas by Tuesday with the first oil shipment to the communist-ruled island since January.
Trump's decision to let Russia deliver the oil avoids a confrontation with Moscow and provides temporary relief to a country that has endured blackouts, fuel rationing and dwindling public transportation.
"We'll welcome it with open arms. You have no idea how badly we need that oil," said Rosa Perez, a 74-year-old retiree who was taking a walk near the Matanzas port as her house had lost power again.
"Let's see if things improve for us, even just a little...I can't take it anymore," she told AFP, voicing hope that more shipments will follow.
Others said it was not enough to solve Cuba's crisis.
"It's a drop in the bucket compared to what this country needs. It means next to nothing," said Raul Pomares, a 56-year-old gardener waiting for a taxi in Havana.
"It's a symbolic gesture that won't have any real impact on the economy for ordinary Cubans," he added.
Moscow said it was "pleased" that the tanker had reached Cuban waters.
"Russia considers it its duty to step up and provide necessary assistance to our Cuban friends," Kremlin spokesman Dmitry Peskov told reporters, adding that Moscow and Washington had been in touch over the shipment.

'Cuba's finished'

Trump said Sunday he had "no problem" with Russia or another country sending oil because Cubans "have to survive" but he predicted that it would have little impact.
"Cuba's finished, they have a bad regime, they have very bad and corrupt leadership, and whether or not they get a boat of oil it's not going to matter," Trump said.
White House Press Secretary Karoline Leavitt said there was no change in US sanctions policy.
"We allowed this ship to reach Cuba in order to provide humanitarian needs to the Cuban people. These decisions are being made on a case-by-case basis," she said.
Cuba lost its main regional ally and oil supplier in January when US forces captured Venezuela's socialist leader Nicolas Maduro.
Trump subsequently threatened to impose tariffs on any country sending oil to Cuba and has mused about "taking" the island of 9.6 million people.
Mexican President Claudia Sheinbaum, whose country last sent crude to Cuba in January, said there have been talks with private firms about buying oil from Mexico's state-owned energy company and selling to private Cuban companies.
She said Monday she had personally donated 20,000 Mexican pesos ($1,100) for humanitarian aid to Cuba.  

'A Band-Aid'

The Anatoly Kolodkin was moving along Cuba's northern coast on Monday evening on its way to Matanzas, a key oil port east of Havana, according to shipping tracker MarineTraffic.
It would take about 15-20 days to process the oil and another 5-10 days to deliver its refined products, according to Jorge Pinon, an expert on Cuba's energy sector at the University of Texas at Austin.
It could produce 250,000 barrels of diesel, enough to cover demand for around 12.5 days, Pinon told AFP.
The government would have to decide whether to use the fuel for backup power generators or for buses, tractors and trains needed to keep the economy going for two weeks, he added.
The oil would likely not be used for Cuba's aging thermoelectric power plants, which rely on the country's own crude production.
Cubans have endured seven nationwide blackouts since 2024, including two this month.
The blackouts as well as persistent shortages of food, medicine and other basics have fueled public frustration and some rare protests.
Retiree Orlando Ocana, 76, said the Russian shipment was a "Band-Aid."
"The real solution to our problems is building new thermoelectric power plants," he said.
lt/jgc

US

Middle East war: global economic fallout

  • - Norway cuts fuel taxes - Norway will temporarily cut its taxes on petrol and diesel to counter rising prices as the Middle East war disrupts global energy supplies, the government said.
  • Here are the latest economic events in the Middle East war: - Oil prices rise - Oil prices rose Monday as the Middle East crisis escalated with the entry of Yemen's Houthi rebels into the Iran war and as US President Donald Trump threatened to destroy Iran's main export terminal.
  • - Norway cuts fuel taxes - Norway will temporarily cut its taxes on petrol and diesel to counter rising prices as the Middle East war disrupts global energy supplies, the government said.
Here are the latest economic events in the Middle East war:

Oil prices rise

Oil prices rose Monday as the Middle East crisis escalated with the entry of Yemen's Houthi rebels into the Iran war and as US President Donald Trump threatened to destroy Iran's main export terminal.
European stocks rose but Wall Street's major indexes closed mostly lower as markets cast a wary eye on Trump's comments about negotiations to end the fighting.
Brent North Sea crude, the international benchmark, closed at $112.78 while West Texas Intermediate gained 3.3 percent to $102.88 a barrel, closing above $100 for the first time since the war started.

Iran parliament body approves Hormuz tolls

Iranian state media reported Monday that a parliamentary commission had approved plans to impose tolls on vessels transiting the Strait of Hormuz, a waterway vital to oil and gas shipments that has been effectively closed due to the Middle East war.
Citing a member of the parliament's security commission, state TV said the plan involved among other things "financial arrangements and rial toll systems" and "implementing the sovereign role of Iran", as well as cooperation with Oman on the other side of the Strait.

Dubai announces financial aid

Dubai will provide support worth over $270 million to help businesses and families, authorities announced Monday, as Gulf states face economic disruption from Iran's aerial attacks and closure of the Strait of Hormuz.

Panama Canal sees traffic increase

The war in the Middle East has prompted a surge in ships utilizing the Panama Canal, an executive for the waterway said Monday.
"We had expected around 34 daily passages" for this year, but in the last two weeks "we've been having 38, 39, 40," the deputy administrator of the canal, Ilya Espino de Marotta, told Telemetro in an interview.

Haifa refinery fire

A large blaze ignited at Israel's Haifa oil refinery after it was hit by debris from the interception of a projectile Monday.
Television channels showed black smoke billowing into the sky from the site, while the fire service shared photos of a tank on fire, shortly after the Israeli military said it had detected new missiles from Iran.

Sri Lanka raises electricity prices 40%

Sri Lanka announced a nearly 40 percent increase in electricity prices from Wednesday as it battles an energy shortage caused by the war in the Middle East.
Sri Lanka has raised fuel prices three times this month, increasing them by more than a third, and has imposed a four-day working week in a bid to save energy.

Norway cuts fuel taxes

Norway will temporarily cut its taxes on petrol and diesel to counter rising prices as the Middle East war disrupts global energy supplies, the government said.

G7 pledges 'necessary measures'

G7 economy and finance ministers said Monday that they stood ready to take "all necessary measures" to ensure the stability of the energy market as they tackled the economic consequences of war in the Middle East.

Bangladesh orders energy saving

Bangladesh has ordered civil servants to switch off lights and turn down air conditioning to save power as the Middle East war worsens an energy crunch, officials said. 

Gulf energy targets

Kuwait said an Iranian attack on a desalination and electricity plant killed one worker and damaged a building as Tehran pressed its aerial campaign against its Gulf neighbours.

Iranian grid 'stable'

Iran has restored electricity in parts of Tehran and nearby areas after strikes damaged power grids and briefly disrupted supply, deputy energy minister Mostafa Rajabi-Mashhadi told state television.

Indian rupee hits fresh record low

India's rupee fell to a record low of more than 95 to the dollar on Monday, before recovering, despite recent efforts by the central bank to stem its fall.
burs-aha/js

Global Edition

Oil rises on Trump's Iran threats, stocks mixed

  • But oil markets were swayed by the red light of Trump's threats to destroy Iran's oil fields and export terminal.
  • Oil prices rose as the Middle East crisis escalated Monday with US President Donald Trump threatening to destroy Iran's main export terminal, and after the entry of Yemen's Houthi rebels into the war.
  • But oil markets were swayed by the red light of Trump's threats to destroy Iran's oil fields and export terminal.
Oil prices rose as the Middle East crisis escalated Monday with US President Donald Trump threatening to destroy Iran's main export terminal, and after the entry of Yemen's Houthi rebels into the war.
European stocks rose but Wall Street's major indexes closed mostly lower as markets cast a wary eye on Trump's comments about negotiations to end the fighting.
Trump expressed confidence that a negotiated settlement would soon be reached but warned that if it was not -- or if Iran continued to block the Strait of Hormuz to most sea traffic -- US forces would blow up Kharg Island and all of Iran's oil wells and electricity generation.
Brent North Sea crude, the international benchmark, jumped to almost $117 per barrel early in the trading session before closing at $112.78.
The West Texas Intermediate gained 3.3 percent to $102.88 a barrel, closing above $100 for the first time since the war started.
US stocks started the day in partial "rally mode" as Trump "made a comment that was meant to be taken positively," said Sam Stovall of CFRA Research.
"But Wall Street has learned by now that you really don't believe everything you read," he added, noting that markets still have room to decline further before bouncing back.
IG analyst Chris Beauchamp said the impact of Trump's statements is weakening.
"Until investors are treated to the sight of senior US officials physically getting on a plane to Pakistan to negotiate, investors will become more skeptical," he said.
Briefing.com analyst Patrick O'Hare compared the situation to an intersection where the traffic light is flashing all colors at once.
Equity investors took their cue initially from the "green light" of Trump indicating that serious discussions are underway to end the war, he said.
But oil markets were swayed by the red light of Trump's threats to destroy Iran's oil fields and export terminal. There were also reports that the United States is readying ground troops, he noted.

New risks

European stocks closed higher, with Frankfurt rising despite data showing German inflation in March jumped to its highest level since January 2024, on the back of rocketing energy prices due to the Middle East war.
Asia's leading stock markets ended the day lower. The Japanese yen jumped on talk that the Bank of Japan could intervene on markets to shore up the country's currency.
The yen's gains weighed heavily on Japanese exporters, with the Tokyo stock market closing down almost three percent.
India's rupee fell to a record low of more than 95 to the dollar on Monday before recovering.
The country is one of the "most vulnerable economies within Asia to an energy price shock," Nomura analysts wrote in a note.
As the war entered its fifth week, the spectre of a widening conflict grew as Houthi rebels said Saturday they fired "a barrage of cruise missiles and drones" at strategic sites in Israel.
"The Houthi's ability to disrupt shipping through the Bab al-Mandeb strait, which accounts for roughly 12 percent of global trade, is the new key risk," said Pepperstone analyst Chris Weston, referring to the waterway between Yemen and the Horn of Africa.

Key figures at around 2015 GMT

Brent North Sea Crude: UP 0.2 percent at $112.78 a barrel
West Texas Intermediate: UP 3.3 percent at $102.88 a barrel
New York - Dow: UP 0.1 percent at 45,216.14 points (close)
New York - S&P 500: DOWN 0.4 percent at 6,343.72 (close)
New York - Nasdaq Composite: DOWN 0.7 percent at 20,794.64 (close)
London - FTSE 100: UP 1.6 percent at 10,127.96 (close)
Paris - CAC 40: UP 0.9 percent at 7,772.45 (close)
Frankfurt - DAX: UP 1.2 percent at 22,562.88 (close)
Tokyo - Nikkei 225: DOWN 2.8 percent at 51,885.85 (close)
Hong Kong - Hang Seng Index: DOWN 0.8 percent at 24,750.79 (close)
Shanghai - Composite: UP 0.2 percent at 3,923.29 (close)
Euro/dollar: DOWN at $1.1460 from $1.1517 on Friday
Pound/dollar: DOWN at $1.3183 from $1.3272
Dollar/yen: DOWN at 159.69 yen from 160.20 yen
Euro/pound: UP at 86.93 pence from 86.78 pence
burs-rl-bys/des

Fed

Powell probe leaves US Fed leadership change in limbo

BY MYRIAM LEMETAYER

  • "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Powell at the time.
  • US President Donald Trump has repeatedly insulted and criticized Federal Reserve Chairman Jerome Powell, famously calling him a "numbskull" and demanding the independent central bank lower interest rates despite stubbornly high inflation.
  • "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Powell at the time.
US President Donald Trump has repeatedly insulted and criticized Federal Reserve Chairman Jerome Powell, famously calling him a "numbskull" and demanding the independent central bank lower interest rates despite stubbornly high inflation.
The Trump administration has ramped up the pressure on Powell, initiating an unprecedented investigation into him over cost overruns related to a Fed building renovation project.
Powell's term as chairman is due to end in May, and Trump has named former central banker Kevin Warsh to replace him. But with the investigation ongoing, the process remains stalled.

Where are we now?

In theory, Powell will preside over his final interest-rate-setting meeting as Fed chair on April 28-29. 
Powell first took the helm of the Federal Reserve during Trump's first presidency in 2018, and was reappointed to the position under Democrat Joe Biden in 2022.
Since his return to power in January 2025, Trump has relentlessly attacked Powell, questioning his mental abilities and labelling him "too late" for not lowering interest rates at the Republican's preferred pace.
Trump has pressured Powell to resign and even threatened to fire him, although the president backed off the latter when markets reacted poorly to the move.
In 2025, the US president went as far as visiting the Fed's under-renovation headquarters, where he verbally tussled with Powell as the two toured the site.
The renovation project has seen cost estimates increase from an initial $1.9 billion to $2.5 billion.
In January, in an extraordinary move, Powell disclosed that Trump's Justice Department had threatened him with a criminal indictment as it investigated the renovation project.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Powell at the time.
Soon after, following a months-long process, Trump named Warsh, a former Fed governor, as his candidate to replace Powell.

What's the hold-up?

Warsh must now be confirmed by the US Senate before he can take up the role. 
The Justice Department probe, however, has ruffled many lawmakers' feathers, and Senator Thom Tillis -- a member of Trump's own party who sits on the Senate Banking Committee -- has vowed to hold up the nomination as long as the investigation remains unresolved.
Earlier this month, a federal judge quashed subpoenas issued to the Fed as part of the probe, with the court saying there was "a mountain of evidence" to suggest the investigation was a pressure tactic.
US Attorney Jeanine Pirro -- a Trump ally -- has vowed to appeal that decision.
While Powell's chairmanship ends in May, his term as a member of the Fed's board of governors runs until January 2028.
After the Fed's last rate-setting meeting in March, Powell vowed he would not leave his post as a Fed governor "until the investigation is well and truly over, with transparency and finality."
While it is not unheard of, it is rare for a Fed chair to remain on as a member of the board after their term as chief expires.
And as long as Warsh's nomination process continues, Powell can legally remain in his role as chair.
myl/els/eml/aha/mlm

US

Facts about Strait of Hormuz shipping blockade

  • The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies". - 45% sanctioned ships - Since the war started, 45 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
  • Here are the latest key facts and figures about the blockage of the Strait of Hormuz, a crucial shipping route virtually paralysed by the Middle East war.
  • The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies". - 45% sanctioned ships - Since the war started, 45 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
Here are the latest key facts and figures about the blockage of the Strait of Hormuz, a crucial shipping route virtually paralysed by the Middle East war.
Around a fifth of global crude oil and liquefied natural gas passes through the waterway in peacetime.
The war erupted on February 28 when the United States and Israel began bombing Iran, prompting Tehran to retaliate with strikes across the region and sharply restrict access to the strait.

First incident reported in over a week

The Express Rome, a Liberia-flagged container vessel, reported on Monday that two unknown projectiles splashed next to the moving ship within an hour of each other. All crew were reported safe.
The ship was 22 nautical miles northeast of the Ras Tanura port in Saudi Arabia, according to the British maritime security agency UKMTO and maritime security firm Vanguard Tech.
Iran's Revolutionary Guards previously claimed to have attacked the vessel on March 11, identifying it as an Israeli ship, in a press release published by the ISNA news agency.
Monday's was the first such incident, attack or suspicious activity reported by the UKMTO since March 22.
Since March 1, 2026, 25 commercial vessels, including 11 tankers, have been attacked or reported incidents in the Gulf, the Strait of Hormuz or the Gulf of Oman, according to the UKMTO.
Drones struck fuel tanks at Oman's Salalah port on Saturday, injuring one worker and disrupting operations but hitting no vessels.

Eight sea workers killed

Since the conflict began, at least eight seafarers or dock workers have died in incidents in the region, according to the International Maritime Organization (IMO).
A further four remained missing and 10 were injured.
Around 20,000 seafarers are affected in the region, according to the IMO.

Handful of crossings

Seventeen commodities vessels crossed the strait over the weekend, 12 of them on Saturday, making it one of the busiest days for crossings since March 1, according to maritime intelligence firm Kpler.
From March 1 to 30 as of 1700 GMT Monday, commodities carriers made just 196 crossings, according to Kpler data -- a decrease of 95 percent from peacetime.
Of these, 120 were by oil tankers and gas carriers and most were travelling east out of the strait.

Chinese container ships pass

On Monday, two further ships -- ultra-large container vessels owned by Chinese shipping giant Cosco -- appeared to have successfully crossed the strait after an aborted attempt last week, maritime tracker MarineTraffic said on X.
It interpreted their passage as "signalling a potential shift in conditions for commercial shipping".

Steel, soybeans shipped

Nine of the commodities ships passing through the strait over the weekend were dry bulk carriers transporting metals, iron ore pellets and soybean meal.
Four vessels were liquified petroleum gas tankers and the rest were liquid tankers.
The channel in peacetime sees around 120 daily transits, according to shipping industry intelligence site Lloyd's List.

2,000 ships in Gulf

Around 2,142 vessels have sent transponder signals in the Gulf west of the Strait of Hormuz in the past day, according to Bloomberg data.
Of those, 298 were tankers, including 10 very large gas carriers and 55 very large crude carriers.

Iran-approved route

Recent crossings appeared to have mainly used a route apparently approved by Iran around Larak Island just off the country's coast.
Leading shipping journal Lloyd's List last week said at least 34 ships had been tracked using it.
The Revolutionary Guards said the route was closed to vessels travelling to and from ports linked to Iran's "enemies".

45% sanctioned ships

Since the war started, 45 percent of the crossings have been by ships under US, EU or UK sanctions, according to an AFP analysis of passage data.
Of the crossings by oil and gas tankers, 62 percent were by vessels under sanctions.
lmc/rlp/rl

Iran

Stock market winners and losers one month into US-Israel war on Iran

BY CORIN FAIFE

  • - Systemic pressure: Financial sector - Banking and financial services have also faced downward pressure as the conflict heightens global economic uncertainty, and the effects of rising fuel prices filter through the economy at all levels.
  • The US-Israel strikes against Iran have triggered a series of retaliations and military escalation in the Middle East that have sent shockwaves through global financial markets.
  • - Systemic pressure: Financial sector - Banking and financial services have also faced downward pressure as the conflict heightens global economic uncertainty, and the effects of rising fuel prices filter through the economy at all levels.
The US-Israel strikes against Iran have triggered a series of retaliations and military escalation in the Middle East that have sent shockwaves through global financial markets.
The conflict, now more than a month old, has disrupted trade and energy markets, with stocks around the globe facing diverging effects based on how exposed they are -- or how much they benefit from -- the chaos.
Here are some of the winners and losers from the conflict so far.

Attracting investors: Oil and gas

Iran has imposed a virtual blockade on the Strait of Hormuz, through which roughly a fifth of global oil and gas supplies pass, causing energy prices to skyrocket.
The price shock has also lifted the valuations of major energy producers.
These producers' profit margins have increased because as oil prices climb, the costs of extraction has remained relatively steady, said Jose Torres, senior economist at Interactive Brokers.
As a result, investors have poured money into companies that look set to profit from a sustained high-price environment.
"They see the conflict continuing for a while," Torres said. "That means oil prices are going to be structurally higher for the next year or two."
In the European markets, BP led the surge with a gain of 22.3 percent in the one-month period from February 27 -- the last trading day before strikes were launched -- to March 27.
TotalEnergies rose 16.7 percent and Shell climbed 13.3 percent in the same period.

Pulling back: Defense sector

Global conflict is usually a boon to defense contractors, and overall, 2026 has seen large gains for weapons makers.
On a shorter timescale, several major defense companies have seen their stock prices slip since the Iran war began, as the market grapples with potential supply chain bottlenecks.
Though munitions are being deployed at a rapid pace, due to long lead-in times for procurement and production, there is a lag until any increased demand can be met.
Investors "don't see a lot of new technology being produced," said Sam Stovall, chief investment strategist at CFRA. "We are in a sense still using up a lot of residual bombs"
German company Rheinmetall saw its shares tumble 17 percent between February 27 and March 27, while Thales dropped 6.7 percent and RTX -- formerly Raytheon Technologies -- fell 6.4 percent.

Facing headwinds: Aviation

The airline industry has emerged as one of the hardest-hit sectors, as the war forces mass flight cancellations and significant rerouting around contested airspace.
Compounding the operational difficulties is the surge in jet fuel prices, which has squeezed profit margins across the board.
The increased cost of fuel is the top concern, but far from the only one, said Stovall.
"Close behind is consumer confidence that is being affected by higher prices at the pump for their automobiles, higher prices when attempting to book summertime travel," he told AFP.
Stovall also pointed to the long lines for security checks at US airports, and heightened travel safety concerns, as reasons that many people are cutting down on nonessential travel.
Lufthansa experienced a sharp decline of 19 percent, while International Airlines Group (IAG, which includes British Airways and Iberia) saw its shares fall 15.9 percent. 
Low-cost carrier Ryanair was also down 10.2 percent.

Systemic pressure: Financial sector

Banking and financial services have also faced downward pressure as the conflict heightens global economic uncertainty, and the effects of rising fuel prices filter through the economy at all levels.
Torres, of Interactive Brokers, noted a pattern in some countries lowering interest rates despite the jump in oil prices.
"I think folks are increasingly worried about an economic slowdown, and they're pricing in now more of the demand destruction effects of higher crude oil prices, as well as how higher interest rates make private credit situations worse," he said.
A recent boom in private credit lending, where non-bank institutions like private equity firms make loans to companies, has sparked concerns that growing rates of default on these loans would have knock-on effects across the economy.
HSBC, which maintains significant exposure to global trade routes and emerging markets, saw its stock price decline by 13.9 percent.
US banks JP Morgan Chase, Goldman Sachs, and Bank of America all saw share prices fall a few percentage points compared to the start of the war, as investors brace for a period of lower lending activity and increased credit risk.
cf/aha/bgs

US

What could Trump achieve by threatening Iran's Kharg Island?

BY FABIEN ZAMORA

  • Just 60 kilometres away is the city of Bushehr, an important military centre "from which the Iranians defend the entire northern part of the Gulf, including Kharg", noted Pierre Razoux of French research centre FMES. - Why do it?
  • A scrubby island in the Gulf that is roughly one third the size of Manhattan, Kharg Island is the nerve centre of the Iranian oil industry -- and at the heart of US President Donald Trump's latest efforts to pressure Tehran.
  • Just 60 kilometres away is the city of Bushehr, an important military centre "from which the Iranians defend the entire northern part of the Gulf, including Kharg", noted Pierre Razoux of French research centre FMES. - Why do it?
A scrubby island in the Gulf that is roughly one third the size of Manhattan, Kharg Island is the nerve centre of the Iranian oil industry -- and at the heart of US President Donald Trump's latest efforts to pressure Tehran.
On Monday Trump vowed that a failure by Iran to agree a deal to end the war could see the United States "completely obliterating" the export hub. 
A day earlier, he had said the United States could take the island, eyed by the Pentagon for ground operations, "very easily".
So what are Trump's options, and how might Iran react if he presses on this pressure point?

What is Kharg Island?

It may be a mere scrap of land, but Kharg  handles around 90 percent of Iran's crude exports, according to a report by US bank JP Morgan.
Located in the north of the Gulf, around 30 kilometres (20 miles) from the Iranian coast and more than 500 kilometres from the Strait of Hormuz, it has no oil wells.
But it has Iran's largest oil terminal, oil pipelines, storage tanks and related infrastructure.
It also has military facilities, some of which have already been hit by Israeli-US strikes.
On March 13, "US forces executed a large-scale precision strike on Kharg Island", Centcom, the US military command for the region, said.
"The strike destroyed naval mine storage facilities, missile storage bunkers and multiple other military sites. US forces successfully struck more than 90 Iranian military targets on Kharg Island, while preserving the oil infrastructure."
Sources close to US intelligence services told US broadcaster CNN Iran had deployed additional troops and defence systems to the area in recent weeks, including MANPAD-type surface-to-air missiles and mines.

Trump's options?

There appear to be three routes for US forces wishing to seize the island -– an airborne attack; an amphibious operation; or a combination of the two.
The Pentagon is currently moving US paratroopers and Marines into the area.
"(The) US combat force build-up sets the stage for (a) potential ground offensive in Iran," said US think tank Soufan.
Centcom former commander General Joseph Votel told The War Zone website this month it would not take that many soldiers to seize Kharg.
"On a small island like Kharg, I imagine you'd need a battalion of Marines. We are therefore talking about a force of 800 to 1,000 men, perhaps a little fewer, certainly not much more," he said.
But taking Kharg and holding onto it "are two different things", stressed Professor Phillips O'Brien of the University of St Andrews in Scotland.
He said the US military would struggle to retain the island within range of Iranian missiles and drones.
Just 60 kilometres away is the city of Bushehr, an important military centre "from which the Iranians defend the entire northern part of the Gulf, including Kharg", noted Pierre Razoux of French research centre FMES.

Why do it?

Trump's war goals remain hazy. It is unclear whether he primarily wants to force Iran to reopen shipping lanes in the Strait of Hormuz; force regime change in Tehran; coerce the Iranians into concessions on their nuclear or ballistic missile programmes.
In the short term, capturing Kharg could give Washington leverage to force Iran to negotiate -– presumably on Trump's terms, given the country's dependence on oil revenue, the Soufan Center said.
It might not have much effect in reopening the Gulf to shipping, however, because Iran controls a string of other islands in the Strait of Hormuz.
And if the Iranians choose not to cede to Trump's demands, "What does the US do?", O'Brien wondered.
"Does the US then, out of spite, level all the economic facilities on Kharg?
"That could easily boomerang back in American faces. It means oil prices skyrocket even more and stay high for much longer," he said.
"It also means Iran will be incentivised to shut down the traffic in the Straits for even longer. If they cannot get their own oil out, why let anyone else's?"
fz/dab-gil/st

US

G7 ministers pledge 'necessary measures' to ensure stable energy market

BY MARTINE PAUWELS

  • "We stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market," G7 energy and finance ministers, as well as central bank governors, said in a joint statement.
  • G7 economy and finance ministers Monday said they stood ready to take "all necessary measures" to ensure the stability of the energy market as they tackled the economic consequences of war in the Middle East.
  • "We stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market," G7 energy and finance ministers, as well as central bank governors, said in a joint statement.
G7 economy and finance ministers Monday said they stood ready to take "all necessary measures" to ensure the stability of the energy market as they tackled the economic consequences of war in the Middle East.
The United States and Israel launched strikes on Iran in late February, and Tehran has hit back by targeting crude-exporting countries in the region and halting most shipments through the Gulf.
The squeeze on supply has pushed oil and natural gas prices higher, with drastic knock-on effects for supply chains in multiple industries.
"We stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market," G7 energy and finance ministers, as well as central bank governors, said in a joint statement.
"We recognise the importance of coordinated international action to mitigate spillovers and safeguard macroeconomic stability."
They said they continued to monitor developments and their potential impact on global growth, and financial market conditions. 
The G7 ministers also called on all countries to refrain from imposing unjustified export restrictions on hydrocarbons and related products.
The G7 -- an informal grouping of the United States, Canada, Britain, France, Germany, Italy and Japan -- helps shape policy debates in the world's wealthiest nations.
France currently holds the rotating presidency of the G7 advanced economies.
"What's happening now in the Gulf is having energy consequences, economic consequences, financial market consequences and potentially inflation consequences," French Finance Minister Roland Lescure told reporters ahead of the meeting, which he chaired. 
The United States has sought support from the group to help halt Iran's blockade of the Strait of Hormuz shipping route.
After a meeting last week, G7 foreign ministers said it was an "absolute necessity" for Iran to re-establish free passage through the strait and called for an end to attacks on civilian infrastructure.

'Act quickly'

Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices. 
On Friday, the French government announced it would spend 70 million euros ($80 million) to help the fishing, agriculture and transport industries in April.
Lescure said on Monday that measures of support should be targeted and rapid.
"This is a crisis that affects all of us and that will result in costs for the nation," Lescure told reporters.
We need to "act quickly and act fairly," he said.
US officials, including President Donald Trump, have said their goals in the war are almost achieved, but thousands of US personnel have been sent to the region in an unprecedented military build-up.
Activists based outside Iran say the US-Israeli campaign has killed more than 3,000 people in the country, over half of them civilians, while Lebanese officials have said more than 1,000 have been killed there since Israel began attacking its territory in retaliation for Hezbollah attacks on March 2.
Officials in Israel and countries across the Gulf have also reported much smaller numbers of casualties.
bur-mpa-as/ah/st

aviation

Air Canada CEO to retire after row over English-only condolence message

BY BEIYI SEOW

  • Rousseau had sparked controversy by issuing an English-only video message to express condolences after a deadly collision late on March 22 between an Air Canada jet and a fire truck at New York's LaGuardia Airport.
  • Air Canada said Monday that CEO Michael Rousseau will retire later this year, an announcement following controversy over his failure to issue condolences both in English and French for a fatal airport disaster.
  • Rousseau had sparked controversy by issuing an English-only video message to express condolences after a deadly collision late on March 22 between an Air Canada jet and a fire truck at New York's LaGuardia Airport.
Air Canada said Monday that CEO Michael Rousseau will retire later this year, an announcement following controversy over his failure to issue condolences both in English and French for a fatal airport disaster.
Rousseau had sparked controversy by issuing an English-only video message to express condolences after a deadly collision late on March 22 between an Air Canada jet and a fire truck at New York's LaGuardia Airport.
Canada has two official languages -- English and French --  and media reports noted that one of the pilots killed in the accident was from French-speaking Quebec.
Rousseau has informed the company's board that he will retire by the end of the third quarter, the airline said, adding that work is underway to choose his successor.
"The Board will consider a number of performance criteria in assessing candidates including the ability to communicate in French," Air Canada said in the statement.
Until he steps down, Rousseau is set to continue leading the company and serving on its board.
Air Canada is the country's largest airline and is headquartered in Montreal, Quebec -- Canada's traditionally French-speaking region. The company is required to offer services in both languages.

'Lack of judgement'

Rousseau had earlier issued an apology over his English-only message, saying he was saddened that his limited French "has diverted attention from the profound grief of the families."
"Despite many lessons over several years, unfortunately, I am still unable to express myself adequately in French," he said in a statement.
He added: "I sincerely apologize for this, but I am continuing my efforts to improve."
Canadian Prime Minister Mark Carney has also criticized the CEO's conduct, saying he was "very disappointed, as others are, rightly so, in this unilingual message."
Carney added that the message showed a "lack of judgement and a lack of compassion."
Similarly, Canadian Foreign Minister Anita Anand told AFP on the sidelines of the G7 foreign ministers meeting in France that all Canadian leaders, including corporate bosses, should speak both official languages.
"Canada is a bilingual country," she said.
In 2021, Rousseau also issued an apology over his lack of French proficiency.
At the time, he apologized for causing offense by giving a speech almost entirely in English, pledging to improve his French.
After remarks to business groups and comments to journalists that he had managed to get by without French for years, Rousseau faced backlash from politicians.
Quebec is the only Canadian province that is primarily Francophone.
bys/sms

economy

Renault says developing ground-based military drone

  • French industry magazine L'Usine Nouvelle said that the carmaker is working in partnership with the Belgian group John Cockerill, which owns the main French supplier of military vehicles Arquus.
  • French carmaker Renault said on Monday it was developing a ground-based drone for military and civilian use as Europe scrambles to boost weapons production in the face of Russian aggression.
  • French industry magazine L'Usine Nouvelle said that the carmaker is working in partnership with the Belgian group John Cockerill, which owns the main French supplier of military vehicles Arquus.
French carmaker Renault said on Monday it was developing a ground-based drone for military and civilian use as Europe scrambles to boost weapons production in the face of Russian aggression.
French industry magazine L'Usine Nouvelle said that the carmaker is working in partnership with the Belgian group John Cockerill, which owns the main French supplier of military vehicles Arquus.
"Our R&D teams are testing and exploring various options, such as ground robots, which also have potential for civilian applications," Renault said in a statement to AFP.
"This is an exploratory study project," the company said without confirming the name of the partner company.
The car manufacturer said that it had been contacted by the defence ministry earlier this year.
"Our R&D teams are working on various projects in the defence sector, while also seeking civilian applications in each case," added Renault.
According to L'Usine Nouvelle, the land drone prototype that Renault is developing is said to be the size of a small car and is expected to be unveiled at the Eurosatory international defence and security exhibition in June.
Designed for battlefield reconnaissance, it resembles a lunar rover equipped with several suspended cameras, according to the specialist publication.
In January, Renault said it was teaming up with Turgis Gaillard, a French defence group, to produce aerial drones in France.
Aerial and terrestrial drones have redefined the nature of war in recent years. 
Last week a top NATO commander, Pierre Vandier, said NATO countries must respond to challenges such as Russia and Iran mass-producing drones, whose capacities are rapidly evolving.
leb-as/ekf/yad

agriculture

Sheep culls put pressure on Greek feta cheese production

BY VASSILIS KYRIAKOULIS

  • Greek authorities have seized pox vaccines originating from Turkey on at least two occasions. 
  • Three months after state vets seized and killed hundreds of his sheep to stamp out an ongoing pox pandemic, Kostas Theofilou fights back tears as he gazes at his empty stable.
  • Greek authorities have seized pox vaccines originating from Turkey on at least two occasions. 
Three months after state vets seized and killed hundreds of his sheep to stamp out an ongoing pox pandemic, Kostas Theofilou fights back tears as he gazes at his empty stable.
"Three families lived off this place. Look what they’ve done to me. I'm 55 years old. What job can I do now?" the livestock farmer sobbed.
From August 2024 to early March, more than 480,000 sheep and goats have been slaughtered because of the pandemic, mainly in central and northern Greece.
Producers say the resulting fall in the livestock population and milk production is threatening feta, one of Greece's premier exports.
A heavy quiet hangs over Theofilou's farm in the absence of the bleats from the sheep and the tinkle of their bells.
The sheepdogs wander about. 
"I only know how to be a shepherd. I have no other memory from my life. Only the sheep," he told AFP.
In Thessaly, where around 45 percent of the briny white cheese is made from sheep and goat's milk, the impact of the disease is already significant.
The central region, one of the country's key centres of agricultural production, has already sustained major livestock losses over the past three years owing to floods and sheep plague.
According to cheesemakers in the area, milk production this year is down by around 40 percent.
Thessaly is the leading region for feta exports, accounting for over 50 percent of Greece's total exports.
Christina Onasoglou is a food technologist specialising in dairy products who runs with her husband a medium-sized dairy that exports 98 percent of the feta it produces.
She told AFP that because of the animal culls, her milk deliveries have fallen by up to 50 percent, resulting in a corresponding reduction in feta production. 

Exports in jeopardy

Sheep milk prices have also increased by up to 12 percent, she noted, further jeopardising exports.
According to estimates by the organisation representing feta producers, the National Interprofessional Organisation for Feta Cheese (EDOF), the drop in feta production due to the lack of milk is expected to reach 20,000 tonnes in 2026. 
It is estimated that in 2025 feta production reached 140,000 tonnes.
To limit the spread of the disease, the authorities have banned livestock farmers from allowing their animals to graze freely.
With the exception of farmers who own fenced-off fields, the rest must keep their flocks in their pens.
"We’ve kept the animals inside since September 9," said Giorgos Xenitidis, a 59-year-old livestock farmer in the outskirts of Thessaloniki.
"We feed them, we water them and they don't go out to pasture. The costs are almost double because the animals are shut in. We live in constant fear that the disease might reach us too," he said.
Almost on a daily basis, police have arrested and put on trial farmers accused of trying to skirt the ban.
Cheesemakers say that by keeping animals confined in barns for a prolonged period that Greece is violating the core requirement of the Protected Designation of Origin (PDO) specification for feta. 
"The main argument for obtaining PDO status for feta was that the milk comes from animals that graze freely in pastures full of native herbs, which gives the milk unique characteristics," said Onasoglou.

Illegal vaccinations

Running out of options, a large number of livestock farmers have proceeded to vaccinate their flocks -- even though Greek authorities have not approved the procedure. 
According to Greek livestock farmers who spoke to AFP, the vaccines used in recent months come mainly from Bulgaria and Turkey. 
"I was told it comes from Bulgaria and is approved there. I refused, but many others have gone ahead with such vaccinations," said a livestock farmer from the Thessaloniki area, who agreed to speak on condition of anonymity.
Greek authorities have seized pox vaccines originating from Turkey on at least two occasions. 
The government has credited wintry weather with a recent lull in the disease.
But a northern Greece veterinarian argues that illegal vaccination has helped.
"One of the reasons there has been a relative lull in the past month is the fact that such vaccinations have been carried out on a large scale," the expert told AFP. 
Greek authorities have strongly opposed vaccination, arguing that the antibodies they create can backfire by giving false signals of infection.
"The use of such vaccines does not allow us to distinguish vaccinated animals from infected ones," said Spyros Kritas, a member of the National Scientific Committee for the Management and Control of Smallpox (EEEDEE), a body specifically set up to combat the virus.
This makes it difficult for authorities to design effective control measures, said Kritas, a professor of Microbiology and Infectious Diseases at Thessaloniki's Aristotelio University.
vk/jph/rl

US

G7 ministers set to tackle financial fallout of Mideast war

BY MARTINE PAUWELS

  • - Governments scrambling - Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices. 
  • Ministers from the G7 will hold talks on Monday to unpack the economic consequences of the war in the Middle East, the French government said, as oil and gas prices continue to soar.
  • - Governments scrambling - Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices. 
Ministers from the G7 will hold talks on Monday to unpack the economic consequences of the war in the Middle East, the French government said, as oil and gas prices continue to soar.
The United States and Israel launched strikes on Iran in late February and Tehran has hit back by targeting crude-exporting countries in the region and halting shipments through the Gulf.
The squeeze on supply has pushed oil and natural gas prices higher, with drastic knock-on effects for supply chains in countless industries.
French Finance Minister Roland Lescure said the G7 meeting, to be held via videoconference, would include energy and finance ministers as well as central bank chiefs and the heads of other international agencies.
"There are already differences in the responses largely linked to differences in exposure to the crisis," Lescure told a news conference on Friday, stressing that Asia was particularly exposed to the turmoil. 
"That is one of the reasons why we wanted to convene a G7 of finance, energy and central banks," he said.
He added that the idea was to exchange views on the impact on financial markets and the economy, later telling local media it was the first time in half a century the G7 had used this format.
The G7, an informal grouping of the US, Canada, Britain, France, Germany, Italy and Japan, helps shape policy debates in the world's wealthiest nations.
The United States has sought support from the group to help halt Iran's blockade of the Strait of Hormuz shipping route.
After a meeting last week, G7 foreign ministers said it was an "absolute necessity" for Iran to re-establish free passage through the strait and called for an end to attacks on civilian infrastructure.

Governments scrambling

Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices. 
But a lack of clarity over US war aims, along with uncertainty over the potential length of the conflict and the spread of hostilities, has left governments scrambling for coherent responses.
US officials, including President Donald Trump, have said their goals in the war are almost achieved, but thousands of US personnel have been sent to the region in an unprecedented military build-up.
Activists based outside Iran say the US-Israeli campaign has killed more than 3,000 people in the country, over half of them civilians, while Lebanese officials have said more than 1,000 have been killed there since Israel began attacking its territory in retaliation for Hezbollah attacks on March 2.
Officials in Israel and countries across the Gulf have also reported much smaller numbers of casualties.
mpa/jxb/rmb/abs

Global Edition

Australia to halve fuel tax in response to Middle East war

  • Albanese announced the step after meeting with the leaders of Australia's states and territories on Monday, agreeing a plan to tackle fuel shortages as the war in the Middle East continues.
  • Australia will halve a fuel tax to help motorists experiencing soaring petrol prices due to war in the Middle East, Prime Minister Anthony Albanese said Monday.
  • Albanese announced the step after meeting with the leaders of Australia's states and territories on Monday, agreeing a plan to tackle fuel shortages as the war in the Middle East continues.
Australia will halve a fuel tax to help motorists experiencing soaring petrol prices due to war in the Middle East, Prime Minister Anthony Albanese said Monday.
Albanese announced the step after meeting with the leaders of Australia's states and territories on Monday, agreeing a plan to tackle fuel shortages as the war in the Middle East continues.
Australia charges a sales tax of 52 cents on each litre of petrol sold at the pump, which will be halved for three months. 
The measure will cost the government $1.75 billion (Aus$2.55 billion), officials said.
"We are making fuel cheaper today because we understand that Australians are under serious pressure," Albanese said. 
Albanese's government has sought to reassure motorists that shipments of fuel continue to arrive in Australia, and petrol shortages in rural towns stem from panic buying and distribution bottlenecks.
Victoria and Tasmania states have made travel on public transport free, and Albanese urged motorists nationally to do what they can to conserve petrol by driving less.
"The less fuel we use in the cities obviously the more we can redirect to regionals areas that are under pressure," he told reporters in Canberra.
In New South Wales, state Premier Chris Minns said there were scores of petrol stations without any fuel, and the focus was on helping rural towns.
"If the situation gets worse, we will take extra measures," he said.
Australia's national parliament on Monday introduced a bill to give powers to the government to underwrite the purchase of shiploads of fuel that will add to supply in Australia. 
Weekly data released by the government showed Australia has 39 days of petrol, a small increase on the previous week, and 30 days of diesel supply.
The government will also reduce costs for trucks by cutting a heavy vehicle road user charge.
The Fuel Check monitor showed average petrol prices had leapt from Aus$1.82 in February to Aus$2.48 on Monday in New South Wales, with diesel reaching Aus$3.
kln/sft/lb

tourism

Air China resumes flights to North Korea after 6-year pause

  • North Korea resumed direct flights and train services with Russia last year and state carrier Air Koryo restarted flights between Beijing and Pyongyang in 2023.
  • Air China restarted direct flights between Beijing and Pyongyang on Monday after a six-year hiatus, another sign isolated North Korea is gradually opening up following the resumption of train services between the capitals.
  • North Korea resumed direct flights and train services with Russia last year and state carrier Air Koryo restarted flights between Beijing and Pyongyang in 2023.
Air China restarted direct flights between Beijing and Pyongyang on Monday after a six-year hiatus, another sign isolated North Korea is gradually opening up following the resumption of train services between the capitals.
China has acted as a lifeline for North Korea's moribund economy as its largest trading partner as well as an important source of diplomatic and political support.
Access to North Korea has always been heavily restricted, but the country became almost entirely cut off when it sealed its borders in 2020 during the pandemic.
Flight CA121 departed Beijing Capital Airport at 7:58 am (2358 GMT on Sunday), according to FlightStats data, and arrived at Pyongyang's Sunan International Airport at 10:37 am (0137 GMT).
The plane was a Boeing 737-700 with capacity for up to 128 passengers, according to travel website Trip.com, though only travellers with business, study or other special purposes can make the cross-border journey.
China's ambassador to North Korea Wang Yajun and other Chinese diplomats greeted the passengers at the airport, Xinhua news agency said.
Earlier, AFP journalists saw travellers at Beijing's bustling airport forming a snaking queue to check in their luggage with the airline.
Pyongyang-bound business traveller Zhao Bin showed reporters his air ticket, and expressed optimism that tourism would resume for Chinese visitors.
"I expect both railway routes and Air China flights will increase, and there will be more exchanges and travel between people," said Zhao, who will be spending around a week in North Korea.
He has visited North Korea multiple times, most recently in 2024, and said that the resumption of the flight route will offer "greater convenience to those of us who frequently travel between Beijing and Pyongyang".

Tourists

Zhao told AFP he was looking forward to eating North Korea's "incredibly rich and diverse" cuisine and hoped increased exchanges between both countries could deepen ties "to a new level". 
"The relationship between the two countries is now as close as brothers," he said.
Air China did not immediately reply to AFP when asked for details on the flight, including the number of passengers travelling from Beijing to Pyongyang.
Economy class tickets had been available for around $200 and a return flight from Pyongyang is scheduled for midday.
Daily passenger train services resumed this month with China, and AFP journalists in China's northeastern town of Dandong -- long a key gateway for exchanges with North Korea -- saw a mostly empty passenger train travelling into the isolated nation last week.
While China has fully reopened its borders since the pandemic, North Korea has proceeded at a much slower pace.
North Korea resumed direct flights and train services with Russia last year and state carrier Air Koryo restarted flights between Beijing and Pyongyang in 2023.
Young Pioneer Tours, which specialises in travel to North Korea, told AFP in March that Air China resuming its route to Beijing opens Pyongyang up to more accessible connections.
While the announcement of flights was "promising" for tourism, "there is still no further confirmation regarding Western tourists", Young Pioneer tour manager Rowan Beard said.
Prior to the pandemic, Chinese tourists made up the bulk of foreign visitors to North Korea, numbering roughly 350,000 in 2019 and providing a huge revenue stream for Pyongyang, according to NK News, a specialist website that provides analyses of the country. 
By comparison, around 5,000 Western tourists visited North Korea each year from 2009, with US citizens accounting for 20 percent of those, according to the 38 North programme at the Washington-based Stimson Center.
bur-isk/dhw/jm

US

Philippines oil refinery secures 2.5 mn barrels of Russian crude

  • In a report to the Philippine stock exchange released Monday, Petron said it had agreed to purchase Russian crude after seeing at least four million barrels in shipments cancelled since the start of the Middle East war.
  • The Philippines' sole oil refinery has secured nearly 2.5 million barrels of Russian crude out of "extreme necessity", a stock exchange filing revealed Monday, as the country seeks to replenish fast-dwindling fuel reserves.
  • In a report to the Philippine stock exchange released Monday, Petron said it had agreed to purchase Russian crude after seeing at least four million barrels in shipments cancelled since the start of the Middle East war.
The Philippines' sole oil refinery has secured nearly 2.5 million barrels of Russian crude out of "extreme necessity", a stock exchange filing revealed Monday, as the country seeks to replenish fast-dwindling fuel reserves.
The Philippines has seen the price of fuel hit historic highs since the US-Israeli war with Iran forced the partial closure of the Strait of Hormuz, with President Ferdinand Marcos most recently saying stocks could last until June 30.
AFP reported last week that a tanker filled with Russian crude oil had arrived at the harbour servicing refinery operator Petron Corp, a purchase unthinkable before longtime treaty ally the United States eased sanctions tied to Moscow's war in Ukraine.
In a report to the Philippine stock exchange released Monday, Petron said it had agreed to purchase Russian crude after seeing at least four million barrels in shipments cancelled since the start of the Middle East war.
"The purchases were undertaken strictly out of extreme necessity as an extraordinary emergency measure in response to unprecedented geopolitical and supply-chain disruptions and only after exhausting all commercially and operationally viable alternatives," the report reads.
"A refinery shutdown for failure to secure crude would lead to serious nationwide fuel shortages and sharp price spikes," said the company, whose refinery accounts for about 30 percent of the country's fuel needs.
Since the war began, the cost of diesel and gasoline has skyrocketed, driving protests by groups representing the country's jeepney drivers and others.
Prices were set to tick up again on Tuesday.
The United States earlier this month eased some restrictions on sales of Russian crude, allowing countries to purchase oil that was already at sea until April 11.
The Philippines' Department of Energy last week announced the arrival of 142,000 barrels of government-procured diesel, part of its target of "up to two million barrels of additional supply for the country".
Energy secretary Sharon Garin told AFP that shipment had come from Japan.
cwl/dan

politics

Trump says Russia can deliver oil to Cuba

BY LAURENT THOMET

  • Trump subsequently threatened to impose tariffs on any country sending oil to Cuba and has mused about "taking" the island.
  • US President Donald Trump said Sunday that Moscow could send oil to Cuba despite Washington's de facto fuel blockade, as a Russian tanker was expected to deliver some much-needed crude to the crisis-hit island.
  • Trump subsequently threatened to impose tariffs on any country sending oil to Cuba and has mused about "taking" the island.
US President Donald Trump said Sunday that Moscow could send oil to Cuba despite Washington's de facto fuel blockade, as a Russian tanker was expected to deliver some much-needed crude to the crisis-hit island.
While the shipment would give the country some relief, Trump renewed his threats against the communist government, predicting that it would fail "within a short period of time."
The Anatoly Kolodkin, which is carrying 730,000 barrels of crude, was off northeast Cuba on Sunday evening and is expected to dock in the western port of Matanzas by Tuesday, according to shipping tracker MarineTraffic.
It would be the first shipment of oil to the island since January, bringing some temporary relief to the country of 9.6 million people that has endured a deepening energy and economic crisis.
"If a country wants to send some oil into Cuba right now, I have no problem with that, whether it's Russia or not," Trump told reporters as he flew back to Washington from his Mar-a-Lago estate in Florida.
"Cuba's finished, they have a bad regime, they have very bad and corrupt leadership, and whether or not they get a boat of oil it's not going to matter," Trump said.
"I'd prefer letting it in, whether it's Russia or anybody else, because the people need heat and cooling and all of the other things that you need," he added.
Cuba lost its main regional ally and oil supplier in January when US forces captured Venezuela's socialist leader Nicolas Maduro.
Trump subsequently threatened to impose tariffs on any country sending oil to Cuba and has mused about "taking" the island.
"Within a short period of time, it's going to fail, and we will be there to help it out," he said Sunday.
"We'll be there to help our great Cuban Americans out who were thrown out of Cuba, in many cases, their family members were mutilated and killed by (Fidel) Castro...Cuba's going to be next."

Daily outages

After Washington launched the oil blockade, President Miguel Diaz-Canel imposed emergency measures to conserve fuel, including strict rationing of gasoline.
He warned this month that "any external aggressor will encounter an unbreakable resistance."
Fuel prices have soared, public transport has dwindled and some airlines have suspended flights to Cuba, hitting the country's fragile economy.
Cubans have endured regular outages as its aging power plants struggle to meet demand, with seven nationwide blackouts since 2024, including two this month,  sparking rare protests.
A humanitarian aid convoy brought more than 50 tonnes of medicine, food, solar panels and other goods to Cuba by air and sea in recent days.
The Anatoly Kolodkin, which is under US sanctions, left the Russian port of Primorsk on March 8.
It was escorted by a Russian navy ship across the English Channel, but the two vessels parted ways when the tanker entered the Atlantic Ocean, according to the British Royal Navy.
The New York Times, citing an unnamed US official briefed on the matter, said the US Coast Guard was allowing the tanker to reach Cuba.
The US Coast Guard did not reply to an AFP request for comment. 
Another ship that was reportedly carrying Russian diesel to Cuba, the Hong Kong-flagged Sea Horse, rerouted to Venezuela this week.

Diesel an 'urgent need'

Once the Anatoly Kolodkin's crude arrives in Cuba, it would take about 15-20 days to process the oil and another 5-10 days to deliver its refined products, according to Jorge Pinon, an expert on Cuba's energy sector at the University of Texas at Austin.
"The urgent need today in Cuba is diesel," the former oil executive said.
The Russian shipment could be converted into 250,000 barrels of diesel, enough to cover the country's demand for around 12.5 days, Pinon said.
Pinon said the government would have to decide whether to use the fuel for backup power generators or for buses, tractors and trains needed to keep the economy going for two weeks.
"If you are Diaz-Canel or somebody making the decision, you go, 'OK, where where do I go with that diesel?'" he said.
"Do I want to generate more electricity so there are less apagones (blackouts)? Or do I want to put it in the transportation sector?"
lt/jgc

police

Two more arrests over attempted attack on US bank HQ in Paris

BY JULIETTE VILROBE

  • Both the Paris judicial police and France's domestic intelligence service, the General Directorate for Internal Security (DGSI), were involved in the probe, the office told AFP. The Bank of America, whose global headquarters are in North Carolina, is a multinational investment bank and financial services holding company.  bur-jvi/jxb/jj
  • Police have arrested two more people over an apparent bid to explode a homemade device outside the Paris branch of the Bank of America, the French domestic security service said on Sunday.
  • Both the Paris judicial police and France's domestic intelligence service, the General Directorate for Internal Security (DGSI), were involved in the probe, the office told AFP. The Bank of America, whose global headquarters are in North Carolina, is a multinational investment bank and financial services holding company.  bur-jvi/jxb/jj
Police have arrested two more people over an apparent bid to explode a homemade device outside the Paris branch of the Bank of America, the French domestic security service said on Sunday.
Interior Minister Laurent Nunez said on Saturday he thought the war in the Middle East might have motivated the attempted attack.
Police detained a first suspect, possibly a minor, in the early hours of Saturday just after he placed a device outside the bank building, near the Champs-Elysees. 
The suspect was accompanied by a second person, who appeared to be taking photos and videos with a mobile phone but who fled when police arrived.
The device contained five litres of liquid believed to be fuel and an ignition system, a source close to the investigation said.
The two further arrests were made on Saturday night.
According to a police source, the first suspect said he had been recruited through the Snapchat app to carry out a bombing in exchange for 600 euros ($692).

France 'extra-vigilant'

Nunez said he did not know who was behind the incident but added that it might have been "proxies" linked to Iran.
Police said the suspect arrested early Saturday outside the bank had told them he was a minor and from Senegal. They were working to verify his identity.
The incident came after more than a month of US and Israeli bombardment of Iran and as talks between key regional players began late Sunday.
The war has escalated into a regional conflagration, with Iran retaliating by attacks on Gulf states, sending energy markets into a tailspin and threatening the world economy.
The French government and security services have said that while they do not believe France itself is a target, US and Israeli interests on its soil might potentially be singled out.
Nunez urged the security forces to be "extra-vigilant" and increase their presence in railway stations and other crowded places. 
Later Sunday he urged local officials to use police and video surveillance systems "to prevent any action targeting Israeli-American sites and those representing the interests of these countries".
France's counter-terrorism prosecutor's office told AFP on Saturday it had launched a probe into "attempted damage by fire or other dangerous means".
Both the Paris judicial police and France's domestic intelligence service, the General Directorate for Internal Security (DGSI), were involved in the probe, the office told AFP.
The Bank of America, whose global headquarters are in North Carolina, is a multinational investment bank and financial services holding company. 
bur-jvi/jxb/jj