US

War in the Middle East: latest developments

- Tehran warns UAE residents - Iran's military warned that it considers ports in the UAE to be legitimate targets and urged residents to "evacuate" port areas, in a statement carried by state TV. Tehran "considers it its legitimate right to defend its national sovereignty and territory by striking American enemy missiles located in ports, docks and US military hideouts", the military's central operational command, Khatam Al-Anbiya, said.

Here are the latest events in the Middle East war: - Jerusalem blasts - Explosions rang out over Jerusalem, AFP reporters heard, shortly after the Israeli military warned that it had detected incoming missiles from Iran.
- Tehran warns UAE residents - Iran's military warned that it considers ports in the UAE to be legitimate targets and urged residents to "evacuate" port areas, in a statement carried by state TV. Tehran "considers it its legitimate right to defend its national sovereignty and territory by striking American enemy missiles located in ports, docks and US military hideouts", the military's central operational command, Khatam Al-Anbiya, said.

Here are the latest events in the Middle East war:

Jerusalem blasts

Explosions rang out over Jerusalem, AFP reporters heard, shortly after the Israeli military warned that it had detected incoming missiles from Iran.

The military said its "defence system is operating to intercept the threat".

Kharg exports 'normal'

Oil export operations from Iran's Kharg island in the Gulf were "continuing as normal" after US strikes on the crude export hub which caused no casualties, said regional official Ehsan Jahaniyan, quoted by the IRNA news agency.

The Fars news agency, citing sources on the island, earlier reported there had been no damage to oil facilities after President Donald Trump said US strikes had destroyed only military targets.

- Lebanon paramedics killed -

Lebanon's health ministry said that Israeli strikes had killed 26 paramedics and wounded 51 others since conflict erupted between Israel and Hezbollah.

It came after Lebanese authorities said an overnight Israeli strike killed 12 doctors, paramedics and nurses working at a healthcare centre in the southern town of Burj Qalawiya, following another strike on the town of Sawaneh that left two paramedics affiliated with Hezbollah and its ally Amal dead.

UAE consulate targeted

The UAE slammed the targeting of its consulate in Iraqi Kurdistan for the second time in a week, the foreign affairs ministry said in a statement.

"The United Arab Emirates expressed its strong condemnation and denunciation of the treacherous terrorist attack by a drone, which targeted the UAE Consulate General in Iraqi Kurdistan, for the second time in a week, and resulted in the injury of two security personnel and caused damage to the consulate building," it said.

UAE energy hub hit

Smoke could be seen rising Saturday from the direction of a major United Arab Emirates energy installation, in what appeared to be the latest strike targeting the Gulf's petroleum facilities hours after the US struck Iran's Kharg Island oil hub.

An AFP journalist said clouds of dark black smoke were seen coming from Fujairah, which is home to a major port and oil export terminal where Iranian attacks have already targeted an oil storage and trading hub.

Tehran warns UAE residents

Iran's military warned that it considers ports in the UAE to be legitimate targets and urged residents to "evacuate" port areas, in a statement carried by state TV.

Tehran "considers it its legitimate right to defend its national sovereignty and territory by striking American enemy missiles located in ports, docks and US military hideouts", the military's central operational command, Khatam Al-Anbiya, said.

France thanks Iraq

President Emmanuel Macron said he had expressed gratitude to the Iraqi prime minister for taking measures to protect French forces, after a drone strike killed a French soldier in Iraq's Kurdistan region.

Arnaud Frion, 42, was killed and six other French soldiers were wounded on Thursday evening in a drone attack in the Erbil region of Iraqi Kurdistan.

Iraq's prime minister has vowed to prevent further attacks.

Macron also Saturday urged Israel to hold "direct talks" with Lebanon and offered to host the meeting in Paris.

Israeli strikes

The Israeli army told people in an industrial zone in the west of Iran's northern city of Tabriz to leave ahead of military operations on Saturday.

Meanwhile, an Israeli strike hit an apartment building in a northern suburb of the Lebanese capital Beirut and targets in the country's south, local media said.

US embassy attacked

A drone struck the US embassy in Baghdad on Saturday, an Iraqi security official said, as an AFP journalist saw smoke rising from the complex. The attack followed strikes targeting the powerful Iran-backed group Kataeb Hezbollah, killing two members including a "key figure", security sources told AFP.

None of the sources said who was believed to be behind the embassy strikes, and the Kataeb Hezbollah group has not commented.

burs/giv/rmb

US

Israel says Iran war entering 'decisive phase'

BY AFP TEAMS IN JERUSALEM, TEHRAN, DUBAI, BAGHDAD AND WASHINGTON

- 'Long as necessary' - Israel's Defence Minister Israel Katz said the strikes on Kharg showed the war was entering a "decisive phase", though he cautioned it would "continue as long as necessary".

Israel said the war against Iran was entering its "decisive phase" on Saturday, as explosions rocked cities across the Middle East, with strikes on the US embassy in Baghdad and a major Emirati energy facility.
- 'Long as necessary' - Israel's Defence Minister Israel Katz said the strikes on Kharg showed the war was entering a "decisive phase", though he cautioned it would "continue as long as necessary".

Israel said the war against Iran was entering its "decisive phase" on Saturday, as explosions rocked cities across the Middle East, with strikes on the US embassy in Baghdad and a major Emirati energy facility.

Washington's embassy in Iraq was hit by a drone, security sources told AFP, the second time it has been targeted since February 28, when the United States and Israel attacked Iran and plunged the Gulf into a conflict that has sent shockwaves through the global economy.

Millions have been displaced by waves of drone, missile and aerial bombing, while more than 1,200 people have reportedly been killed in Iran, with little sign of the conflict slowing as it entered its third week.

Oil prices have surged by 40 percent as Iran chokes off the vital Strait of Hormuz with threats to shipping and strikes on Gulf energy facilities.

Clouds of black smoke rose Saturday over Fujairah, home to a major Emirati oil storage and export terminal, shortly after Iran's military warned UAE civilians to avoid port areas.

President Donald Trump said Friday that US forces had struck Iran's Kharg Island, its biggest oil export hub, and "obliterated every MILITARY target", though sparing its energy facilities.

Iranian media confirmed the island's oil facilities were unaffected. Iran had threatened US-linked oil and energy firms would be "turned into a pile of ashes" if they were hit.

The strike could be a "turning point" with both sides escalating in a bid to force a surrender, said analyst Vali Nasr of John Hopkins University in a social media post. "The end will likely not be Iranian backing off but inflaming the Gulf."

Trump said the US Navy would start escorting tankers through the Strait of Hormuz "very soon", but governments around the world fear a prolonged blow to their economies.

'Long as necessary'

Israel's Defence Minister Israel Katz said the strikes on Kharg showed the war was entering a "decisive phase", though he cautioned it would "continue as long as necessary".

Yet, despite facing superior US and Israeli firepower, Iran appears determined to fight on.

Blasts were heard by AFP journalists over Jerusalem on Saturday after the army detected missiles fired from Iran.

Iran has launched missile and drone attacks against at least 10 of its neighbours.

The Palestinian Islamist movement Hamas urged Iran to refrain from targeting Gulf neighbours, many of which have supported its cause. It was a rare breach between the allies, though Hamas affirmed Tehran's right to defend itself.

Qatar said it intercepted two missiles over the capital's downtown area on Saturday and evacuated key areas after blasts were heard by AFP journalists in Doha.

Strikes continue in Iran, with heavy blasts shaking Tehran late Friday and local media reporting strikes in several provinces through Saturday.

Israel's army warned people in an industrial zone of Tabriz in northern Iran to evacuate, signalling an imminent attack.

Iran's health ministry says more than 1,200 people have been killed by US and Israeli attacks, numbers that could not be independently verified.

Up to 3.2 million people have been displaced inside Iran, according to the UN refugee agency.

Trump described Iran as "totally defeated" and in search of a deal he was unwilling to consider.

More than 15,000 targets in Iran have been hit by the US and Israel in two weeks, the Pentagon said.

A report this week said the first six days alone cost the US $11.3 billion and it has lost 13 military personnel.

Transition

US media raised the possibility of a ground invasion, with the New York Times and Wall Street Journal reporting the Pentagon had dispatched the Japan-based amphibious assault ship USS Tripoli to the region with some 2,500 Marines.

Iran's rulers appear intent on showing they will survive the war and maintain control, despite their supreme leader Ali Khamenei being killed on day one.

Khamenei's son Mojtaba Khamenei was named the new supreme leader, but has been absent from public view and is reportedly wounded.

Reza Pahlavi, the US-based son of Iran's last shah, said on social media Saturday that he was ready to lead a transition "as soon as the Islamic Republic falls".

But Iran's Revolutionary Guards have threatened a heavy crackdown on any anti-government protests. Thousands were killed in mass demonstrations in January, and a near-total internet blackout has been imposed since since the war began.

'Existential battle'

Beyond the Gulf, Turkey said NATO forces shot down a ballistic missile launched from Iran -- the third such interception in the war.

Lebanon has also been drawn in.

The Iran-backed Hezbollah attacked Israel from Lebanon after Khamenei's death and its leader, Naim Qassem, has called the current conflict an "existential battle".

Israel has responded with air and ground assaults, killing at least 773 people according to the Lebanese authorities, and issuing evacuation orders that have displaced hundreds of thousands.

An overnight strike in southern Lebanon killed a dozen health workers at a clinic, with health authorities saying Israel has killed 26 paramedics since March 2.

bur-er/dc

US

Middle East turmoil revives Norway push for Arctic drilling

BY PIERRE-HENRY DESHAYES, WITH ADRIEN DE CALAN IN BRUSSELS

Norway supplies nearly a third of Europe's gas needs, after the war in Ukraine cut Russian gas deliveries.

Already the continent's biggest single supplier of natural gas since Russia invaded Ukraine, Norway is hoping to use the Middle East war to get European Union blessing to drill in the Arctic.
Norway supplies nearly a third of Europe's gas needs, after the war in Ukraine cut Russian gas deliveries.

Already the continent's biggest single supplier of natural gas since Russia invaded Ukraine, Norway is hoping to use the Middle East war to get European Union blessing to drill in the Arctic.

The European Commission is revising its Arctic strategy, which has since 2021 committed the EU to work towards an international moratorium on oil and gas drilling in the region.

With Iran blocking the Strait of Hormuz -- a crucial conduit for oil and gas deliveries -- Norwegian politicians and business circles have been quick to lobby for the planned ban to be scrapped.

"They're taking advantage of the situation to apply pressure," said Anne Karin Saether, project manager at the Norwegian Climate Foundation, an independent body that promotes science-backed climate policies.

Ahead of Monday's close of the European Commission's public consultation, Norway -- which is not an EU member but is closely aligned on many issues -- has seized every opportunity to extol the virtues of stable energy supplies from a democratic and peaceful country.

Even if that means drilling in the Arctic.

"Against the backdrop of Ukraine and Iran, it may now be even easier to scare European policymakers," said Truls Gulowsen, head of the Norwegian Society for the Conservation of Nature.

Lobbying efforts

"We've noticed the lobbying efforts from the Norwegian oil industry," a European diplomat in Brussels told AFP.

"My sense is they are concerned about restrictions on oil and gas extraction. Drill, baby, drill, in other words," he said.

Norway supplies nearly a third of Europe's gas needs, after the war in Ukraine cut Russian gas deliveries.

The Scandinavian country has only two gas fields above the Arctic Circle, Snohvit and Aasta Hansteen. But Oslo is encouraging exploration.

In January, the government proposed opening 70 new blocs to prospecting, more than half of them in the Arctic waters of the Barents Sea.

According to the Norwegian Offshore Directorate, Norway's undiscovered resources are estimated at 3.48 billion cubic meters of equivalent oil and gas, 60 percent of which are believed to be in the Barents Sea.

"Norway generally makes a point of sharing its knowledge about the country with Brussels so that EU member states have the best possible basis for making their decisions," Norwegian Energy Minister Terje Aasland told AFP.

"The fact that there is a war in the Middle East today has nothing to do with Norway's position on oil activities in the North," he insisted.

Stressing that the EU and Britain now buy "all the oil and gas" that Norway produces in the Barents Sea, Aasland argued that "prices would have been much higher" without these resources.

In remarks seen as possibly pressuring EU countries, Aasland warned last week that the Middle East conflict could lead the EU to reconsider its position on doing without Russian oil and gas.

Norway's Confederation of Trade Unions has also called for more Arctic exploration.

One of its representatives in Brussels, Nora Hansen, stressed "the importance of jobs and of keeping people in the northern regions", seeing these as a security guarantee against neighbouring Russia.

Risk of sabotage

"Even if the EU abandons its proposed moratorium, it will in any case take several decades before new oil and gas activities in the Arctic begin production," said Karoline Andaur, the head of WWF Norway.

Although the European Commission's revised Arctic strategy is only due to be published in the second half of the year, it has already said that, at least for now, its "position has not changed" on an Arctic hydrocarbon moratorium.

But some fear there will be compromises and concessions.

Noting that its waters are ice-free thanks to the Gulf Stream, the Norwegian consultancy Rystad Energy has, for example, suggested excluding the Barents Sea from the EU's definition of the Arctic.

That would be a bad idea, Saether warned, citing environmental and climate-related objections: according to the International Energy Agency, global deposits of oil and gas already discovered or being exploited are sufficient to meet demand compatible with climate targets.

A Norwegian Climate Foundation report, entitled "The Barents Sea at Stake", also highlighted security challenges.

Because of its proximity to Russia, the area would be an easy target for Russia, which is keen to maintain its dominant position in the Arctic.

"This makes us particularly vulnerable, because Russia, with some pretty simple sabotage against gas pipelines up there, could strike not only Norway but Europe as well," Saether said.

"We would become a more tempting target."

adc-phy/ef/po/tw

US

Middle East war: global economic fallout

Iran's military threatened to reduce US-linked oil facilities in the region "to a pile of ashes" if its energy infrastructure was hit.

Here are the latest economic events in the Middle East war on Saturday: - Kharg Island bombed, Iran threatens US-linked oil targets - President Donald Trump said the US heavily bombed military targets on Iran's Kharg Island, which handles almost all of the country's crude exports, and threatened to hit the island's oil infrastructure.
Iran's military threatened to reduce US-linked oil facilities in the region "to a pile of ashes" if its energy infrastructure was hit.

Here are the latest economic events in the Middle East war on Saturday:

Kharg Island bombed, Iran threatens US-linked oil targets

President Donald Trump said the US heavily bombed military targets on Iran's Kharg Island, which handles almost all of the country's crude exports, and threatened to hit the island's oil infrastructure.

"I have chosen NOT to wipe out the Oil Infrastructure on the Island. However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider," Trump posted.

Iran's military threatened to reduce US-linked oil facilities in the region "to a pile of ashes" if its energy infrastructure was hit.

Iranian news agency Fars reported that no oil infrastructure on Kharg had been damaged in the bombing.

US allows Venezuela fertilizer imports

Washington on Friday authorized imports of fertilizer from Venezuela, whose leader it deposed in January, as the US-Israel war against Iran drives up prices of the key agricultural commodity.

Washington has issued new licenses as part of the ongoing easing of its sanctions on Venezuela's energy sector. In addition to oil and gas, the licenses now include trade in fertilizers, including urea and phosphates.

Brent surges 11% over week

The price of a barrel of Brent crude, the international benchmark for oil, soared by 11 percent over the week to $103.14 at Friday's close, while stocks slipped.

Brent prices have rocketed more than 42 percent since US-Israeli strikes on Iran plunged the oil-rich Middle East into war.

Pushback on easing Russia sanctions

The US Treasury Department said it would temporarily allow the sale of Russian oil that is at sea as energy prices soared, triggering pushback.

The leaders of France, Germany and EU chief Antonio Costa all spoke out against the idea.

Russia's economic envoy Kirill Dmitriev said the global energy market "cannot remain stable" without his country's oil.

Only 77 ships have traversed Hormuz: Lloyd's

Only 77 ships have so far crossed the Strait of Hormuz in March as the war disrupts one of the world's most vital shipping routes, a maritime data firm reported Friday.

Lloyd's List Intelligence said most of the vessels belonged to the so-called shadow fleet of ships being used to skirt Western sanctions and regulations, typically linked to Russia and Iran.

It added during the period of March 1 through 11 last year, around 1,229 vessels made the passage through the waterway.

20 ships attacked trying to transit Hormuz

Twenty oil tankers and cargo ships have been attacked since the war began, according to AFP monitoring with British maritime security group UKTMO and other sources.

But a Turkish-owned ship was able to cross the Strait of Hormuz with Iran's permission, Turkey's transport minister said.

Serbia, Portugal cut fuel tax

Serbia's government temporarily cut fuel taxes by 20 percent, with its energy ministry saying the excise duties on petrol and diesel would be reduced from Friday until April 15.

Portugal also said it was renewing a temporary cut to fuel taxes, with officials adding that the cut would apply to petrol and diesel.

African nations have limited oil reserves

Fuel shortages caused by the war could knock up to three percentage points off African economic growth if they persist, a top regional energy regulator told AFP.

Most African countries have fuel reserves for just 15 to 25 days, compared to the International Energy Agency standard of 90 days, said Geoffrey Aori, CEO of the Regional Association of Energy Regulators for Eastern and Southern Africa.

He called on African governments to introduce fuel rationing and subsidies to cushion the blow of inflation and weakening currencies in the short term.

6 million air passengers affected

More than six million air passengers travelling to or from the Middle East have had their flights cancelled since the start of the war, according to the aviation data specialist Cirium.

It said more than 52,000 out of 98,000 scheduled flights have been called off.

Nepal restricts cooking gas

Nepal has started selling half-filled cooking gas cylinders to curb hoarding and panic buying, officials said, following import disruptions due to the war.

The landlocked Himalayan nation of 30 million relies almost entirely on India for the transportation of its fossil fuel needs, and around 90 percent of India's liquefied petroleum gas passes through the Strait of Hormuz.

burs-rl-bys/ceg/tc

US

Iran, US threaten attacks on oil facilities

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

The Iranian military responded that oil and energy infrastructure owned by US-linked firms would be "immediately be destroyed and turned into a pile of ashes" if the United States struck its oil facilities, according to Iranian media.

Iran threatened Saturday to reduce US-linked oil facilities to "a pile of ashes" as the two-week-old Middle East war spilled over into a global oil price crisis.
The Iranian military responded that oil and energy infrastructure owned by US-linked firms would be "immediately be destroyed and turned into a pile of ashes" if the United States struck its oil facilities, according to Iranian media.

Iran threatened Saturday to reduce US-linked oil facilities to "a pile of ashes" as the two-week-old Middle East war spilled over into a global oil price crisis.

Iranian armed forces issued the warning after US President Donald Trump said he may decide to "wipe out" Iran's largest oil export hub on its Kharg Island.

Waves of drone, missile and aerial bombing have displaced millions in the region and reportedly killed more than 1,200 people in Iran since the United States and Israel opened hostilities on February 28.

Despite facing superior US and Israeli firepower, Iran has retaliated with missile and drone attacks against at least 10 countries.

Tehran has also squeezed the world economy by threatening to strike oil tankers on the Strait of Hormuz, bringing traffic to a virtual halt on a route that normally carries one fifth of global oil supplies.

Crude oil prices have surged more 40 percent since the war began.

Trump said Friday US forces had "totally obliterated" all military targets on Iran's Kharg Island oil export hub, describing it in a social media post as "one of the most powerful bombing raids in the History of the Middle East."

The US leader said he had chosen not to "wipe out" oil infrastructure on the Iranian island, for now.

"However, should Iran, or anyone else, do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz, I will immediately reconsider this decision," he said.

Trump said the US Navy would start escorting tankers through the Strait of Hormuz "very soon" to restore oil exports.

The Iranian military responded that oil and energy infrastructure owned by US-linked firms would be "immediately be destroyed and turned into a pile of ashes" if the United States struck its oil facilities, according to Iranian media.

US and Israeli attacks have killed more than 1,200 people in Iran, according to health ministry figures that could not be independently verified.

The UN refugee agency has estimated that up to 3.2 million people have been displaced inside Iran since the war started.

Blasts hit Tehran

Heavy blasts shook Tehran late Friday after the United States vowed to step up air strikes.

Trump described Iran as "totally defeated" and in search of a deal he was unwilling to consider.

According to the Pentagon, the US and Israel have struck more than 15,000 targets in Iran over the past two weeks.

Israel's military said it conducted 7,600 strikes on the country, most of them against its missile programme.

Iran appears intent on showing it will come through the war intact and in control, despite its supreme leader Ali Khamenei being killed at the start of the US-Israeli campaign.

Khamenei's son Mojtaba Khamenei was named the new supreme leader, but has been absent from public view and said to be wounded.

Within Iran, the Revolutionary Guards have warned of a strong response to any anti-government protests, after demonstrations in January in which several thousand people were killed.

Iranian authorities have maintained an internet blackout since the war started.

A drone struck the US embassy in Baghdad on Saturday, an Iraqi security official and a security source said. An AFP journalist saw smoke rising from the complex.

The attack took place shortly after two Iran-backed fighters were killed in strikes on Iraq's capital, according to several sources.

After 14 days of war, the United States is reportedly sending reinforcements that could open up options beyond the airborne campaign.

The Wall Street Journal and New York Times said Friday the Pentagon had dispatched the Japan-based amphibious assault ship USS Tripoli to the region along with its complement of some 2,500 Marines.

The US military has lost 13 personnel since the war started.

They include six who were aboard a refuelling aircraft that crashed in Iraq, an incident that US officials said was not the result of hostile fire.

Gulf countries are still being targeted by Iran.

Missiles intercepted

Qatar said it intercepted two missiles Saturday, after blasts were heard in the capital Doha and authorities said they had evacuated some key areas.

Interceptors were seen downing two projectiles over the Qatari capital's downtown area and blasts were heard, according to AFP journalists.

Saudi Arabia's defence ministry said its forces had intercepted dozens of drones on Friday.

Beyond the Gulf, Turkey said NATO forces shot down a ballistic missile launched from Iran -- the third such interception in the war.

Lebanon has been drawn into the war, too, after a Tehran-backed militant group attacked Israel in response to the killing of Iran's supreme leader.

An Israeli strike in southern Lebanon killed a dozen doctors, paramedics and nurses at a healthcare clinic, Lebanese health authorities said Saturday.

According to the Lebanese authorities, at least 773 people have been killed by Israeli attacks in Lebanon aimed at wiping out Iranian ally Hezbollah.

bur-djw/jm

summit

Trump, Xi prepare to meet amid Iran war, uncertain goals

BY DANNY KEMP AND BEIYI SEOW WITH ISABEL KUA IN BEIJING

In a sign that both sides want to set the stage for the Trump-Xi talks, US Treasury Secretary Scott Bessent is due to meet with Chinese Vice Premier He Lifeng in Paris this weekend.

Just over two weeks before President Donald Trump is due to meet his counterpart Xi Jinping in Beijing, Chinese uncertainty over the US leader's goals and the impact of the Iran war hang over the highly anticipated state visit.
In a sign that both sides want to set the stage for the Trump-Xi talks, US Treasury Secretary Scott Bessent is due to meet with Chinese Vice Premier He Lifeng in Paris this weekend.

Just over two weeks before President Donald Trump is due to meet his counterpart Xi Jinping in Beijing, Chinese uncertainty over the US leader's goals and the impact of the Iran war hang over the highly anticipated state visit.

Trump's trip, his first to China in his second term, is aimed at sealing a trade war truce the two leaders shook hands on when they met in South Korea in October.

But for Beijing, which likes to carefully choreograph such events to avoid any possibility of embarrassment, Trump's free-wheeling style is proving a challenge.

A source familiar with negotiations told AFP that Chinese officials were expecting more ambitious preparations for such a summit between the leaders of the rival superpowers.

The White House insisted however that preparations were going well for the visit from March 31 to April 2, with regular contacts and interactions with Beijing.

"Unlike the autopen Biden administration that prized performance over outcomes, the Trump administration is very comfortable with trip planning, on both logistics and deliverables," a White House official told AFP, referring to the accusation that former president Joe Biden used an automated device to sign documents.

"The president looks forward to his visit to China, where he and President Xi will discuss a range of topics of importance to the world's two largest economies."

Trump is "intent on leveling the playing field for American farmers, manufacturers, and working families," the official added.

Trade war

Business leaders however have been concerned that as of earlier this week, invitations had not gone out to be part of the US delegation.

"It's hard to imagine the president is not going to want to have a robust delegation," Sean Stein, president of the US-China Business Council, said Tuesday.

"We think it's important for that to happen soon."

Scott Kennedy of the Center for Strategic and International Studies believes both sides have discussed logistics but made less progress "on substance."

If business leaders are involved too late, that could leave the trip short on deliverables, he warned.

In a sign that both sides want to set the stage for the Trump-Xi talks, US Treasury Secretary Scott Bessent is due to meet with Chinese Vice Premier He Lifeng in Paris this weekend.

The meeting is likely meant to hammer out economic achievements to be announced at the leaders' summit, Fudan University professor Wu Xinbo told AFP.

The stakes are high, with Washington this week announcing trade investigations into countries including China, opening the door to penalties to replace the Trump tariffs overturned by the US Supreme Court.

The visit follows a turbulent year for US-China ties since Trump returned to the White House in January 2025, as the countries fought an escalating tariffs war after Trump imposed sweeping global duties in April.

Another concern is Taiwan, the self-governing island that some US officials believe Xi wants to invade in 2027. Trump said recently he would decide soon whether to send Taiwan more weapons, despite Xi's warnings not to.

Iran overshadows?

But perhaps the biggest cloud over the visit is war in the Middle East.

"If this war carries on to April, then that will be the main talking point in the Trump-Xi meeting," Benjamin Ho, an assistant professor at the S. Rajaratnam School of International Studies, told AFP.

China has condemned the US-Israeli strikes on Iran, which have hit oil imports to the world's second-largest economy at a sensitive time.

Yet Beijing has steered clear of concrete action to help Tehran, a long-time ally, or of direct confrontation with Washington.

Trump too has played down any rift, instead portraying the war as vital for keeping the Strait of Hormuz clear for oil traffic.

"We're really helping China here," Trump said Monday.

China's investments in the Middle East, and decisions on investments, may be hit, but its perceived neutrality could help ships transit the strait, as happened with the Houthi rebels in Yemen.

Analysts said China is unlikely to play any mediating role, preferring to keep its distance.

Instead, Xi may use the summit to project an image of statesman-like stability, in contrast with the turbulence unleashed by his US visitor -- and avoid Iran altogether.

"Chinese officials probably want to avoid any public display of acrimony with Trump," said Jean-Loup Samaan, senior research fellow at the National University of Singapore's Middle East Institute.

bys-isk-dk/js

Trump

Trump 'has fun' buying shoes for cabinet members

Trump added that he had "never liked cabinet members walking in in sneakers."

US President Donald Trump confirmed Friday that he had bought several members of his cabinet the same shoes from his favorite brand.
Trump added that he had "never liked cabinet members walking in in sneakers."

US President Donald Trump confirmed Friday that he had bought several members of his cabinet the same shoes from his favorite brand.

The unusual gifts were first reported this week in The Wall Street Journal, which said Trump had given out pairs of Florsheim shoes worth $145 -- at times even guessing people's shoe size in front of them.

"It's a nice shoe," Trump said in an interview with Fox Radio when asked about the story.

"What I do is, is somebody that for many many years has walked around in shoes that were no good, and would not be that comfortable," said the 79-year-old Republican.

"So I have fun with it. When they tell me they have a problem, I say, 'Let me get you a pair of shoes.' It seems to work out pretty well. Now they look all spiffy and nice. It's a gift from Donald Trump."

Trump added that he had "never liked cabinet members walking in in sneakers."

Those wearing the shoes include Vice President JD Vance, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, The Wall Street Journal said.

One photo showed Rubio in what appeared to be the same footwear, which looked too big on the heels.

The model on the Florsheim website that most closely resembles those in the photographs is a leather dress shoe made in China, sold for $145 a pair.

dk/js

Global Edition

Oil stays above $100, stocks slide tracking Mideast war

"The pressure remains with no end in sight in the Middle East conflict," Razaqzada added.

Oil prices stayed over $100 per barrel Friday while stock markets slid, with no end in sight to disruption in crude supplies as war rages on in the Middle East.
"The pressure remains with no end in sight in the Middle East conflict," Razaqzada added.

Oil prices stayed over $100 per barrel Friday while stock markets slid, with no end in sight to disruption in crude supplies as war rages on in the Middle East.

With the conflict heading toward its third week, equity markets continued falling amid investor worries of an extended crisis that could fan inflation and hammer the global economy.

The price of Brent crude, the benchmark international oil contract, dipped below $100 during the day, sending equities briefly higher.

But stocks slid back into the red as Brent climbed back above the $100 mark.

It closed at $103.14 per barrel, and has soared by more than 42 percent since the start of the conflict.

US-Israeli strikes on Iran on February 28 plunged the Middle East into war, sparking a surge in fuel prices as Tehran vowed to choke the Strait of Hormuz -- a critical artery for global energy transport.

"Crude oil is continuing to dictate direction for markets as we head towards the end of a volatile week," said Fawad Razaqzada, market analyst with Forex.com.

"The pressure remains with no end in sight in the Middle East conflict," Razaqzada added.

"Traders are trying to figure out what a fair value for crude oil is right now, given the big release of emergency oil reserves, and the temporary relaxation of sanctions on Russian oil sales that's already at sea," he said.

Iran's threats over the Strait of Hormuz, through which a fifth of global crude oil and liquefied natural gas passes, is causing worries of rising prices rippling through the world economy.

"Fears of a burgeoning energy crisis remain front and center for investors," noted Joshua Mahony, chief market analyst at Scope Markets.

"Inflationary fears are particularly prevalent," Mahony added.

Major central banks, which prior to the war's outbreak were heavily forecast to keep cutting interest rates, are now widely expected next week to freeze borrowing costs or even hike them to keep a lid on inflation.

An unprecedented seven central banks are due to hold meetings on interest rates next week.

Investors also digested updated US economic growth data for the fourth quarter, which was revised down to 0.7 percent from an initial reading of 1.4 percent.

And delayed data showed the US Federal Reserve's preferred inflation gauge had dipped to 2.8 percent in January.

This is still higher than the Fed's two-percent inflation target, and reflects a period before energy prices shot higher.

The US central bank now faces an environment where inflation remains sticky and could soon be boosted by energy prices, while GDP growth and the labor market continue to lose momentum, said eToro US Investment Analyst, Bret Kenwell.

On foreign exchange markets, the dollar held gains against major rivals owing to its safe-haven status and expectations that US interest rates will remain elevated longer than expected.

AJ Bell investment director Russ Mould said next week's central bank meetings "come at a delicate time."

"Markets will be watching closely for any signals on how they plan to deal with surging oil and gas prices and whether they see it as a short-term bump to look through."

Key figures at around 2055 GMT

Brent North Sea Crude: UP 2.7 percent at $103.14 per barrel

West Texas Intermediate: UP 3.1 percent at $98.71 per barrel

New York - Dow: DOWN 0.3 percent at 46,558.47 points (close)

New York - S&P 500: DOWN 0.6 percent at 6,632.19 (close)

New York - Nasdaq Composite: DOWN 0.9 percent at 22,105.36 (close)

London - FTSE 100: DOWN 0.4 percent at 10,261.15 (close)

Paris - CAC 40: DOWN 0.9 percent at 7,911.53 (close)

Frankfurt - DAX: DOWN 0.6 percent at 23,447.29 (close)

Tokyo - Nikkei 225: DOWN 1.2 percent at 53,819.61 (close)

Hong Kong - Hang Seng Index: DOWN 1.0 percent at 25,465.60 (close)

Shanghai - Composite: DOWN 0.8 percent at 4,095.45 (close)

Euro/dollar: DOWN at $1.1416 from $1.1514 on Thursday

Pound/dollar: DOWN at $1.3223 from $1.3346

Dollar/yen: UP at 159.74 yen from 159.39 yen

Euro/pound: UP at 86.33 pence from 86.27 pence

burs-rl-bys/sla

Israel

Democrats accuse Trump of aiding Russia with sanctions relief

The senators noted media reports -- partially endorsed by Trump in an interview on Friday -- saying Russia is providing Iran with intelligence that could be used to target US forces, even as the Trump administration loosens sanctions that constrained Moscow's oil sector.

Democrats accused US President Donald Trump on Friday of weakening pressure on Russia by easing oil sanctions amid the conflict with Iran, saying the move risks boosting Moscow's war revenues while American troops face threats of their own in the Middle East.
The senators noted media reports -- partially endorsed by Trump in an interview on Friday -- saying Russia is providing Iran with intelligence that could be used to target US forces, even as the Trump administration loosens sanctions that constrained Moscow's oil sector.

Democrats accused US President Donald Trump on Friday of weakening pressure on Russia by easing oil sanctions amid the conflict with Iran, saying the move risks boosting Moscow's war revenues while American troops face threats of their own in the Middle East.

Senate Democratic Minority Leader Chuck Schumer and two of his top lieutenants, Elizabeth Warren and Jeanne Shaheen, called for Treasury Secretary Scott Bessent to testify before Congress about the decision.

The senators noted media reports -- partially endorsed by Trump in an interview on Friday -- saying Russia is providing Iran with intelligence that could be used to target US forces, even as the Trump administration loosens sanctions that constrained Moscow's oil sector.

"Russia is reportedly providing Iran intelligence to target and kill US service members and the Trump administration's response has been to loosen pressure and help facilitate a windfall of $150 million each day for its war machine," the senators said in a joint statement.

"President Trump is offering more relief to the Kremlin than he is to American families, who are now paying more at the pump and for most other essentials because of this conflict," they wrote.

Trump acknowledged in a radio interview that aired Friday he suspected Putin "might be" aiding Iran "a little bit" in the war.

He announced earlier this week that Washington would waive some oil-related sanctions in order to boost global supply and bring down prices, as the US-Israeli war with Iran disrupts shipping through the Strait of Hormuz and sends energy markets into turmoil.

The president did not specify which countries would benefit from the relief, but the move followed temporary steps allowing Indian refiners to purchase Russian oil that had been stranded at sea under existing sanctions.

The Democratic senators argued that relaxing sanctions on Russian energy companies and related traders would generate major profits for Moscow at a time when the Kremlin remains under Western pressure over its invasion of Ukraine.

They also questioned whether the administration had complied with a US law requiring Congress to be notified before sanctions on Russia are eased.

"Secretary Bessent needs to testify because Congress and the American people deserve immediate answers," the lawmakers said.

Energy Secretary Chris Wright defended the sales authorizations, saying the White House was working to ease energy price pressures caused by disruptions linked to the Iran war by tapping oil already in global markets -- while keeping sanctions policy toward Russia unchanged.

"(This) administration remains focused on American consumers and businesses while carrying out this critical mission to end Iran's ability to threaten Americans, its neighbors and global energy markets," he said in a statement on social media.

ft/js

Fed

US federal judge quashes subpoenas in Fed chair investigation

BY ASAD HASHIM

"The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them."

A US federal judge has quashed subpoenas issued to the Federal Reserve as part of an investigation that Fed chair Jerome Powell has called an attempt by the Trump administration to intimidate the independent central bank.
"The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them."

A US federal judge has quashed subpoenas issued to the Federal Reserve as part of an investigation that Fed chair Jerome Powell has called an attempt by the Trump administration to intimidate the independent central bank.

"A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning," wrote Judge James Boasberg in a filing dated March 11.

"The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them."

The documents were made public Friday. The Justice Department's investigation was linked to the cost of renovations at the Fed's headquarters.

US prosecutor Jeanine Pirro swiftly responded, saying the Trump administration would appeal the order.

"This is the antithesis of American justice. Exonerating anyone without any records, without an investigation or question, is not how our criminal justice system works," Pirro told reporters.

"No one, folks, is above the law, and this outrageous decision will be appealed by the United States Department of Justice," she said.

US President Donald Trump has repeatedly insulted Powell over the central bank's policies on setting the economy's key interest rate.

In January, Powell revealed that the Justice Department had launched a probe linked to cost overruns in the Fed's renovations.

The investigation was unprecedented, and Powell released a statement saying it was meant to intimidate him and the Fed.

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions -- or whether instead monetary policy will be directed by political pressure or intimidation," he said at the time.

On Friday, Judge Boasberg's order was scathing in its criticism of Pirro's office.

"The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual."

The Fed did not comment on the issue when queried by AFP.

Repeated Trump attacks

Trump has been vocal about his preferences for lower interest rates, criticizing Powell and attempting to unseat another Fed Governor, Lisa Cook, over mortgage fraud allegations.

In January, the US Supreme Court appeared skeptical of Trump's attempts to fire Cook, with a majority of judges expressing doubts that the administration had shown sufficient cause to remove her.

Republican Thom Tillis of the Senate Banking Committee recently vowed to oppose the confirmation of Fed nominees -- including the next chairman -- until the Justice Department probe against Powell is resolved.

That would hold up Trump's nomination for the next Fed chair when Powell's term is up in May.

"This ruling confirms just how weak and frivolous the criminal investigation" of Powell is, Tillis wrote on social media Friday.

"Appealing the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair," he said on X.

The Fed cut rates three times last year but held off on further reductions in January as policymakers walk a tightrope, balancing inflation risks alongside labor market worries.

Its rate-setting committee will hold a meeting next week, with analysts expecting it to keep rates unchanged amid economic turmoil from the US-Israeli war on Iran and recent economic data.

aha-bys/jgc

US

UK govt warns petrol retailers against 'unfair practices' during Iran war

"We have said so clearly that we won't tolerate unfair practices either here or anywhere else in the industry.

Britain's energy minister warned petrol retailers Friday that the government would not tolerate "unfair practices" amid a row over rising fuel prices sparked by the Middle East war.
"We have said so clearly that we won't tolerate unfair practices either here or anywhere else in the industry.

Britain's energy minister warned petrol retailers Friday that the government would not tolerate "unfair practices" amid a row over rising fuel prices sparked by the Middle East war.

Executives from forecourt operators and firms including Asda, BP, ExxonMobil and Shell were called to Downing Street for talks with Ed Miliband and finance minister Rachel Reeves.

The discussions were convened due to increasing concerns about the impact the conflict between the United States and Israel against Iran is having on already strained household finances.

"We have said so clearly that we won't tolerate unfair practices either here or anywhere else in the industry. It is our obligation as the government to ensure the consumers are treated fairly in this crisis," said Miliband.

Reeves told the petrol bosses that she wanted an "open and frank conversation" with them.

"We have concerns around the high prices and we do have a shared obligation," she added.

The meeting was earlier thrown into doubt when the Petrol Retailers Association (PRA) threatened to pull out, accusing the government of using "inflammatory language" regarding rising fuel prices.

The group claimed that recent comments by ministers were leading members of the public to abuse workers at petrol stations.

Reeves had asked the competition watchdog to "crack down" on "rip-off" fuel prices to guard against profiteering over the high oil prices caused by the war.

British automotive services company the RAC estimates that the average litre of unleaded petrol has risen from about £1.33 ($1.76) to £1.41, since the conflict began on February 28 with US and Israeli strikes on Iran.

Britain's main opposition Conservative party is putting pressure on Reeves to cancel her intention to marginally increase fuel levies later this year.

pdh/jkb/rh

US

War has halted Gulf oil flow -- and restarting it won't be easy

BY SYLVIE HUSSON

- Since the war started with US-Israeli strikes on Iran on February 28, at least 33 strikes or attempted strikes have targeted energy infrastructure in the Middle East, according to an AFP tally.

The war in the Middle East has largely paralysed the Gulf region's crucial oil industry, which has been hit by attacks and an export blockade.
- Since the war started with US-Israeli strikes on Iran on February 28, at least 33 strikes or attempted strikes have targeted energy infrastructure in the Middle East, according to an AFP tally.

The war in the Middle East has largely paralysed the Gulf region's crucial oil industry, which has been hit by attacks and an export blockade.

The war has forced companies to dramatically slow or even halt production -- and restarting it will not be easy, even when the war is over.

What has been targeted?

Since the war started with US-Israeli strikes on Iran on February 28, at least 33 strikes or attempted strikes have targeted energy infrastructure in the Middle East, according to an AFP tally.

The United States and Israel carried out 13 of them against Iran.

The other 20, which struck seven Gulf countries, were attributed to Iran.

The strikes mostly hit oil and gas fields or complexes, such as the massive Ras Tanura refinery in Saudi Arabia, Ras Laffan gas processing base in Qatar and the complex housing the Ruwais refinery in the United Arab Emirates.

Iran has also effectively blocked the crucial Strait of Hormuz, the usual shipping lane for around 20 percent of the world's oil and liquefied natural gas output.

Why is production down?

Some infrastructure has been damaged.

Other facilities have closed or reduced activity as a precaution, such as Ruwais.

The near-closure of the strait has also had a major impact.

Gulf countries' output of oil and oil products has plunged from 30 million barrels per day last year, excluding Oman, to 20 million currently, according to the International Energy Agency (IEA).

It said the amount passing through the Strait of Hormuz had fallen to less than 10 percent of pre-war levels.

Saudi Arabia and the UAE have pipelines that can send some oil beyond the region, but their capacity is limited.

The result is storage facilities that are full to the brim.

"That's the main issue at the moment," an industry insider told AFP.

"Since there aren't enough ships to empty the storage facilities and export the product, suppliers have to stop production."

There is no easy fix, warned Pankaj Srivastava, a commodities expert at Rystad Energy.

"With crude supply increasingly stranded in the Gulf, refiners may soon be forced to adjust operations, curtailing runs as product exports stall and directing output solely to domestic markets," he said.

How long to restart?

"Depending how they were shut down, (restarting refineries) can take a week or two to reach full output," said the industry insider.

For oil wells, it is simpler: "You just reopen the valve."

According to the IEA, "upstream production will take weeks and, in some cases, months, to return to pre-crisis levels", depending on the site.

And "in the absence of a full ceasefire, ship owners, charterers, insurers, and crew will need to see robust security measures" to return to the strait, such as armed escorts, it added.

It said a traffic management system may need to be created to handle the massive backlog when traffic resumes in the strait, estimating it would take "several days to weeks" to clear.

nal/dlm/abb/jhb/rl

US

Mideast war cuts Hormuz strait transit to 77 ships: maritime data firm

Since the start of March, 20 commercial vessels, including nine oil tankers, have been attacked or reported incidents, according to the UK Maritime Trade Operations agency.

Only 77 ships have so far crossed the Strait of Hormuz in March as the Mideast war disrupts one of the world's most vital shipping routes, a maritime data firm reported Friday.
Since the start of March, 20 commercial vessels, including nine oil tankers, have been attacked or reported incidents, according to the UK Maritime Trade Operations agency.

Only 77 ships have so far crossed the Strait of Hormuz in March as the Mideast war disrupts one of the world's most vital shipping routes, a maritime data firm reported Friday.

Lloyd's List Intelligence said most of these vessels belonged to the so-called "shadow fleet" -- ships used to skirt Western sanctions and regulations, typically linked to Russia and Iran.

They are often ageing ships in poor condition, without proper insurance and with opaque ownership.

The 77 transits recorded so far this month compare with 1,229 passages between March 1 and 11 last year, according to Lloyd's List Intelligence.

Iran's Revolutionary Guards have all but closed the Strait of Hormuz, which borders Iran and through which 20 percent of global oil supplies pass.

Since the start of March, 20 commercial vessels, including nine oil tankers, have been attacked or reported incidents, according to the UK Maritime Trade Operations agency.

Meanwhile, the International Maritime Organization has confirmed 16 incidents in the area, including eight involving oil tankers.

Iran's new supreme leader Mojtaba Khamenei said on Thursday that "the lever of blocking the Strait of Hormuz must definitely be used."

The strategy is aimed at harming the global economy in order to exert pressure on the United States.

"Over half of the tankers and gas carriers going through are shadow fleets," said Bridget Diakun, a senior analyst at Lloyd's List Intelligence.

"These ships are really used to disruptions," so are more likely to attempt the passage, she added.

According to the firm, vessels affiliated with Iran account for 26 percent of passages through Hormuz, followed by Greece with 13 percent and China with 12 percent.

"The main takeaway here is that... Iran is still exporting," Diakun said.

Separately, AFP counted around 40 vessels that have crossed the Strait of Hormuz since the start of the conflict, considering only those that kept their AIS transponder -- the automatic identification system -- switched on.

bur/ajb/jkb/rl

US

How will US oil sanctions waiver help Russia?

The Kremlin welcomed the decision by urging the United States to go further, with economic envoy Kirill Dmitriev saying the lifting of more sanctions looked "inevitable" given the volatility of the global energy market.

The United States has eased some restrictions on Russia's oil sales as it tries to stabilise global energy markets, upended by Iran blocking the Strait of Hormuz amid the war in the Middle East.
The Kremlin welcomed the decision by urging the United States to go further, with economic envoy Kirill Dmitriev saying the lifting of more sanctions looked "inevitable" given the volatility of the global energy market.

The United States has eased some restrictions on Russia's oil sales as it tries to stabilise global energy markets, upended by Iran blocking the Strait of Hormuz amid the war in the Middle East.

Will the US sanctions waiver deliver a major windfall for Moscow?

Symbolic importance

The US waiver allows countries to buy Russian oil that is currently at sea until April 11.

Given the short-term nature and technical limitations, it will not provide a huge immediate windfall to Russia, though nonetheless benefits Moscow, Kpler analyst Muyu Xu told AFP.

"The measure mainly allows Russian barrels already in transit to complete voyages and discharge," she said in a note, calling it a "wind-down, not reopening."

Announcing the sanctions relief, US Treasury Secretary Scott Bessent said the move would not provide "significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction."

Kpler suggests around 120 million barrels of Russian crude may be at sea at the moment.

That represents around two weeks of Russia's total oil output.

But Muyu Xu from Kpler said most of that had already been pre-ordered by Chinese or Indian clients, limiting the immediate bump in orders.

Washington had last week given a similar waiver to New Delhi, which "gave Indian refiners a big advantage to snap up the cargo," she said.

The waiver may carry more symbolic than financial weight for Moscow.

"It's a gift to Russia in terms of sanctions," said Richard Meade, editor-in-chief of Lloyd's List Intelligence, a maritime data company.

Media reports suggested that Japan, Thailand and the Philippines were considering buying Russian crude following the US decision.

But Kpler's Muyu Xu said some countries might still have concerns as the EU and UK sanctions still remain in place.

"It's not crystal clear that everybody is free to buy ... It's not as easy as Trump just opened the tap and then the oil will naturally flow to the rest of the world."

The Kremlin welcomed the decision by urging the United States to go further, with economic envoy Kirill Dmitriev saying the lifting of more sanctions looked "inevitable" given the volatility of the global energy market.

Russian President Vladimir Putin earlier this week offered to supply oil to Europe should it reverse on sanctions, but only on a "long-term" basis and "free from political pressure."

Tens of billions

Beyond the US waiver, the general surge in oil prices since the start of the war in the Middle East has helped to replenish Russia's coffers, depleted by more than four years of war against Ukraine and international sanctions.

Russia's ESPO blend, typically purchased by China and India, is trading $30-40 higher per barrel than before the conflict.

Every extra $10 per barrel brings an additional $1.6 billion a month in tax revenues for the Russian government, Sergey Vakulenko from Carnegie Endowment estimated.

If "it rose by $40 and held that level for six months, this would mean an extra $38 billion," he said in a post on Telegram.

That would be enough to cover most of Russia's 2025 deficit, which came in at around $50 billion.

Russia has posted a budget deficit in every year since it ordered troops into Ukraine and expects to do so again in 2026.

Oil-and-gas revenues -- roughly one-fifth of Russia's state income -- were running at a five-year low at the start of the year, hit by sanctions, production issues and Ukrainian attacks on energy facilities.

The measures, aimed at widening supply to push down prices, are a "godsend for Russia's shadow fleet," said Lloyd's analyst Bridget Diakun, referring to the opaque sanctions-busting tankers used by Russia.

"Russia can make a lot of money because it's given a pass," she added during a webinar.

Outcry from Ukraine and Europe

Ukrainian President Volodymyr Zelensky said the US sanctions relief "certainly does not help peace."

Europe, which has not eased its sanctions on Russian oil, also pushed back.

French President Emmanuel Macron said that the Strait of Hormuz's shutdown "in no way" justified lifting the sanctions on Russia.

Britain said "all partners should maintain pressure on Russia and its war chest", while German Chancellor Friedrich Merz said that "easing sanctions now, for whatever reason, is wrong."

burs/rl

shutdown

Airport workers miss pay as US government shutdown hits one month

BY FRANKIE TAGGART

TSA officers shouldn't miss paychecks, disaster relief shouldn't be left hanging, and Americans' safety shouldn't be collateral damage in a political standoff Republicans created." ft/acb

US airport security officers missed their first full paycheck Friday as a partial funding shutdown of the government approached the one-month mark, with no breakthrough in a congressional standoff that is beginning to disrupt travel across the country.
TSA officers shouldn't miss paychecks, disaster relief shouldn't be left hanging, and Americans' safety shouldn't be collateral damage in a political standoff Republicans created." ft/acb

US airport security officers missed their first full paycheck Friday as a partial funding shutdown of the government approached the one-month mark, with no breakthrough in a congressional standoff that is beginning to disrupt travel across the country.

The lapse in funding is forcing thousands of Transportation Security Administration (TSA) staff to work without pay as spring travel picks up, raising fears of staffing shortages, longer security lines and flight delays.

TSA officers -- the army of workers who screen passengers, baggage and cargo -- received only partial pay two weeks ago.

Friday's missed payment represents the first full check lost since the shutdown began, and unions and government officials warn the financial strain is pushing some workers to quit or seek other jobs.

Amid stalled talks on Capitol Hill to end the stoppage, President Donald Trump hit out at Democrats, accusing them of willful obstructionism.

"These are people that hate our country. These are people that have Trump Derangement Syndrome...Anything I say, they go the opposite," he told Fox News Radio.

More than 300 TSA employees have already left the agency since the shutdown began on February 14, the Department of Homeland Security (DHS) said, while US media reported unscheduled absences had more than doubled.

Airports in several cities have warned passengers to arrive hours earlier than usual because of long security lines.

Some officers are already taking on second jobs or relying on donations, union officials say, while several major airports are collecting gift cards and stocking food pantries for TSA staff struggling without pay.

"Numerous employees have reported to me that their bank accounts are at zero or negative," Johnny Jones, a Dallas-based official in government workers' union AFGE, told USA Today.

"No funds for daycare, no funds for food. They just want to know why the hell they can't get paid when we have money to shoot missiles into other countries."

'Nightmare'

The shutdown stems from a dispute over funding for the DHS, the only federal department still without an approved budget after Congress completed most of its spending bills last year.

Democrats say they will not support funding immigration enforcement agencies such as Immigration and Customs Enforcement and Customs and Border Protection without reforms to their operations.

Republicans say those demands are unacceptable and accuse Democrats of refusing to negotiate.

The stalemate has hardened in the Senate, where Democrats have repeatedly blocked legislation passed by the Republican-controlled House to fund the department.

Republicans, in turn, rejected a Democratic proposal that would fund other DHS agencies while leaving immigration enforcement unresolved.

"Thanks to the Democrats' reckless shutdown, security lines at Austin-Bergstrom International Airport are stretching OUT THE DOOR," the DHS said in a statement about long lines at the Texas hub.

"The Democrats' political games are making spring break travel a NIGHTMARE as they continue to withhold funding from DHS and refuse to pay our (TSA) officers."

Airports and travel groups warn that the impact could intensify if the shutdown drags on, with exhausted workers leaving and further straining security operations nationwide.

"Democrats have tried -- six separate times -- to pass simple bills to keep these critical parts of DHS running while negotiations continue," Senate Democratic Minority leader Chuck Schumer said in a statement.

"Six times Republicans came to the floor and blocked them. TSA officers shouldn't miss paychecks, disaster relief shouldn't be left hanging, and Americans' safety shouldn't be collateral damage in a political standoff Republicans created."

ft/acb

mining

Senegal to take back assets of phosphate giant ICS

"We now want to take back all the assets and decide for ourselves what to do with our phosphates," the prime minister's statement said.

Senegal's government said on Friday it would take back all the assets of ICS -- one of Africa's biggest phosphate fertiliser producers -– ending the licence to control it held by Asian group Indorama Ventures.
"We now want to take back all the assets and decide for ourselves what to do with our phosphates," the prime minister's statement said.

Senegal's government said on Friday it would take back all the assets of ICS -- one of Africa's biggest phosphate fertiliser producers -– ending the licence to control it held by Asian group Indorama Ventures.

Prime Minister Ousmane Sonko issued a statement saying there had been major irregularities at ICS (Industries Chimiques du Senegal).

In September 2024, recently elected President Bassirou Diomaye Faye, a Sonko ally, announced a sweeping review of contracts and agreements signed with foreign partners.

This was an election promise made by PASTEF, the party to which Faye and Sonko belong, designed to bring more benefit to the country's 18 million people.

Senegal faces substantial debt, with the government accusing the previous administration of having concealed the extent of the budgetary situation.

Its leading industrial complex was taken over in 2014 by the Asian petrochemical group Indorama and employs thousands of people in the west African country.

Late on Thursday, Sonko told a press conference the government had renegotiated a string of contracts -– mainly with foreign firms -- in key sectors including mining, and withdrawn dozens of licences where companies had breached regulations.

He said on Friday the Senegalese state had been "short-changed... throughout the entire time" that Indorama, which specialises in phosphate mining and processing, had run ICS.

He put the "loss of revenue" at nearly 1,076 billion CFA francs ($1.88 billion).

Among the breaches, he cited "non-payment of taxes and duties, undue tax and customs benefits, and exemptions granted without legal basis".

"All of this amounts to substantial revenue shortfalls," he said, adding that the state was claiming more than 200 billion CFA francs from ICS, whose accounts had been frozen.

"We now want to take back all the assets and decide for ourselves what to do with our phosphates," the prime minister's statement said.

ICS was contacted by AFP but declined to comment.

- Renegotiated contracts -

Sonko said many contracts had been renegotiated in key sectors such as phosphates, cement and attapulgite clay -- a mineral used in the manufacturing, automotive and agriculture industries -- as well as in seawater desalination, electricity generation, infrastructure and property.

"We have made gains and savings," he said, without specifying amounts.

Sonko said the government had withdrawn 71 mining licences, including 14 for gold, from companies that had "failed to honour commitments" and would allocate them to "partners who respect" the contracts they sign.

It had also revoked concessions to exploit at least five oil blocks, he said, without naming the companies penalised.

Sonko said the review of the oil sector was ongoing and the government had identified a number of "unfair contracts" to "discuss in detail".

Senegal started producing oil in 2024 at the offshore GTA gas field that it shares with Mauritania.

GTA is operated by Britain's BP, US company Kosmos Energy and the national oil companies of Senegal and Mauritania, Petrosen and SMH respectively.

Due to rising fuel prices as a result of the war in the Middle East, Sonko said he had told Australian oil company Woodside -- which operates the offshore Sangomar field jointly with Petrosen -- to channel more oil to the domestic market.

"We do not know how long this situation will last," he said.

sjd-mrb/ayv/tw-gil/kjm

US

Global shipping industry caught in storm of war

BY ISABEL MALSANG

His business savvy, he said, consists of "knowing how to buy and how to transport".

For anyone in the import business, the economic risks from the war in the Middle East arrive by sea -- and that goes for everyone who buys their products, too.
His business savvy, he said, consists of "knowing how to buy and how to transport".

For anyone in the import business, the economic risks from the war in the Middle East arrive by sea -- and that goes for everyone who buys their products, too.

As the war rages into its third week, the effective closure of the strategic Strait of Hormuz has upended not just the oil and gas industries but worldwide transport via container ship, the symbol of globalised trade.

Just ask French importer Emmanuel Benichou, who is nervously watching the war's impact on prices for the lawn furniture he imports from China and sells online.

"Our prices haven't gone up yet, but if the war goes on for months, we'll either have to cut our margins or raise our prices," he told AFP.

The Middle East accounted for just 9.8 percent of global container trade last year, according to British maritime consultancy Clarksons, cited by Bloomberg.

But in a world of intricate trade links, the chaos unleashed by the war has knock-on effects around the globe.

Iran's de facto closure of the Strait of Hormuz has blocked thousands of commercial ships, meaning many cannot reach the right port at the right time.

"There's merchandise sitting in India that's supposed to be delivered in Saudi Arabia," the chief executive of maritime transport giant CMA CGM, Rodolphe Saade, told French newspaper Le Figaro.

The fact that civilian ships have become targets in the Gulf exacerbates the situation.

Twenty commercial ships, among which nine oil tankers, have been attacked since the war began with US-Israeli strikes on Iran on February 28, or have signaled incidents, according to AFP monitoring with British maritime security group UKTMO and other sources.

Surcharges

And the surge in fuel prices caused by the blockade of the strait -- the usual shipping lane for around 20 percent of global oil and liquefied natural gas -- is causing transport companies to impose surcharges.

Both CMA CGM and its competitor Hyundai Merchant Marine (HMM) have jacked up prices because of the war, Benichou said.

"HMM is charging an extra $230 per container in emergency fuel surcharges," he said. "CMA CGM is charging a $155 surcharge."

He is no stranger to the market.

His business savvy, he said, consists of "knowing how to buy and how to transport".

His company Aosom imports around 400 containers a month.

"I know how to take advantage of shipping opportunities," he said.

In peacetime, he jumps at the chance whenever shipping companies with spare capacity offer discounts in freight rates.

Conversely, "in the busy season, just before Chinese New Year, for example, we always see extra fees," he said.

But they usually return to normal soon enough.

Now, shipping prices keep climbing. The cost of sending a container from Asia to Europe has jumped from $2,500 before the war to as much as $4,000, he said.

And prices rise the longer the route grows.

Most container ships are already required to avoid the Red Sea and Suez Canal over fears of attacks by Yemen's Iran-backed Houthi rebels -- making the route to Europe longer, and fuel costs more expensive.

'Mountains of containers'

If the war drags on, Benichou said he fears more surcharges for security risks, ship blockages, insurance, and storing merchandise stranded far from its final port of call.

In the Middle East, shipping companies have taken to using lorries to get containers to their destinations.

They are also redirecting ships toward Europe and Africa and seeking alternative ports along new corridors.

In the Gulf, where container ships can no longer access the crucial port of Dubai, CMA CGM is unloading merchandise just before the Strait of Hormuz at another United Arab Emirates port, Khor Fakkan.

"The risk is getting stuck with mountains of containers that block port terminals and cause huge delays," the CEO of shipping giant Maersk, Vincent Clerc, told newspaper Le Monde.

For some, it brings back bad memories of the Covid pandemic, reviving fears of a global supply chain collapse.

Benichou remembers shipping costs soaring then to $14,000 per container.

im/jhb/rl

dollar

Why is the dollar profiting from Middle East war?

BY LUCIE LEQUIER

- Trump's paradox - Market developments since the start of the conflict run counter to the objectives initially stated by Trump, who has pledged to lower gas prices, fight for lower interest rates, as well as advocating for a weak dollar to support exports.

The surge in energy prices triggered by the conflict in the Middle East has significantly strengthened the dollar, paradoxically undermining US President Donald Trump's economic objectives.
- Trump's paradox - Market developments since the start of the conflict run counter to the objectives initially stated by Trump, who has pledged to lower gas prices, fight for lower interest rates, as well as advocating for a weak dollar to support exports.

The surge in energy prices triggered by the conflict in the Middle East has significantly strengthened the dollar, paradoxically undermining US President Donald Trump's economic objectives.

AFP looks at the reasons behind the greenback's rise against rivals.

King of oil

At the start of the conflict almost two weeks ago, investors began massively selling assets, turning to energy investments in anticipation of a supply crisis -- and to the dollar -- the currency used to price oil and gas.

Attacks on Gulf infrastructure and the blockade of the strategic Strait of Hormuz has propelled the price of Brent North Sea crude, the global benchmark, by more than one third to around $100 per barrel.

With more dollars needed to purchase oil, the greenback has appreciated by around 2.5 percent since the start of hostilities, according to the Dollar Index, which compares the US unit to a basket of major currencies.

The dollar, seen as a highly liquid asset owing to it being readily available and exchangeable, is seen also as a leading safe haven investment.

It is favoured for international trades as well as foreign exchange reserves held by central banks.

The US spared

The United States has so far been spared from the oil supply crisis thanks to the country being the world's leading producer of crude.

Although it still imports the commodity, the US purchases only eight percent of its requirement from the Gulf, compared with nearly two-thirds from Canada, according to the most recent official data from the US Energy Information Administration.

Rising oil prices tend to support the dollar also thanks to the US being a net exporter of refined petroleum products and gas, in turn boosting the nation's trade balance.

By comparison, European and Asian economies which are more reliant on Gulf imports are being hit harder, making their currencies and bonds less attractive.

Risks to inflation

The dollar is additionally profiting from the possibility of a fresh inflation hike caused by soaring energy costs.

This is because it increases the likelihood of the US Federal Reserve slowing the pace of its planned cuts to interest rates, while even forcing it to possibly raise borrowing costs in the short term.

The prospect of higher interest rates for longer strengthens the appeal of the dollar, to the detriment of dollar-denominated gold and another traditional safe haven.

Despite recent strengthening, the dollar has not yet recovered to the levels it reached ahead of Trump's return to the White House.

Offsetting the currency's recent gains are concerns about the impact of Trump's tariffs on the world's biggest economy.

Fears surrounding high US debt levels and the president's pressure over the independence of American institutions, notably the Fed, have also weighed upon its value.

"The dollar remains in demand and well supported," Kathleen Brooks, analyst at traders XTB, told AFP.

"However, as the conflict drags on the attractiveness of the dollar could diminish... The US still has a massive budget deficit, which could get worse due to the war, as military spending may need to rise sharply in the coming months."

Trump's paradox

Market developments since the start of the conflict run counter to the objectives initially stated by Trump, who has pledged to lower gas prices, fight for lower interest rates, as well as advocating for a weak dollar to support exports.

Countering this, US Treasury Secretary Scott Bessent asserted at the end of January that the "US always has a strong dollar policy".

Mark Sobel, a former senior Treasury official, told AFP that "the administration's views on the dollar are confused, muddled and inconsistent".

Marc Chandler, analyst at Bannockburn Capital Markets, meanwhile concluded that for the US government, "denying Iran nuclear weapons or missiles seems to have a higher priority than the short-run impact of the foreign exchange market".

lul-bcp/ajb/rl

indicator

US economic growth sharply lower than estimated in fourth quarter

BY BEIYI SEOW

For all of 2025, GDP growth was 2.1 percent, slightly below the 2.2 percent previously estimated.

The US economy grew at a significantly slower pace than initially estimated for the final months of 2025, government data showed Friday, a major downgrade that comes as fallout from war in the Middle East looms.
For all of 2025, GDP growth was 2.1 percent, slightly below the 2.2 percent previously estimated.

The US economy grew at a significantly slower pace than initially estimated for the final months of 2025, government data showed Friday, a major downgrade that comes as fallout from war in the Middle East looms.

US GDP rose at an annual rate of 0.7 percent in the fourth quarter, the Commerce Department said.

This was sharply down from an earlier estimated 1.4 percent and below the third quarter's 4.4 percent advance.

Growth was dragged by a lengthy government shutdown between October and mid-November.

But latest figures also suggest the world's biggest economy could have been on a weaker footing than anticipated ahead of US-Israeli strikes targeting Iran on February 28 that have since plunged the crude-rich region into war.

Already, the conflict has roiled energy markets and sent fuel prices surging, fanning inflation worries.

The tepid showing caps the first full year of Donald Trump's return to the presidency. Beyond the shutdown, worries over a cooling jobs market and stubborn inflation are growing.

In the fourth quarter, the growth adjustment reflected "downward revisions to exports, consumer spending, government spending, and investment," the Commerce Department said. Imports decreased less than initially calculated.

A separate report showed Friday that the Federal Reserve's preferred inflation gauge came in slightly cooler than expected in January.

But the 2.8 percent level remains above the central bank's longer term target of two percent.

Excluding volatile food and energy costs, the personal consumption expenditures price index was up 3.1 percent.

Consumer worries

"The disappointing end to the year largely reflected a self-inflicted drag from the longest government shutdown in US history, but private sector demand also softened modestly," said EY-Parthenon chief economist Gregory Daco.

He added that real consumer spending growth was boosted by affluent households' spending on services.

More recent data show gloomier consumers in March, with sentiment dipping to its lowest reading of the year according to a University of Michigan survey.

"Interviews completed prior to the military action in Iran showed an improvement in sentiment from last month, but lower readings seen during the nine days thereafter completely erased those initial gains," said survey director Joanne Hsu.

"Gasoline prices have exerted the most immediate impact felt by consumers," she added.

For all of 2025, GDP growth was 2.1 percent, slightly below the 2.2 percent previously estimated.

While Trump has repeatedly called for lower interest rates to boost the economy, the Fed's job is complicated by persistent inflation and now, further price pressures as energy costs spike.

The independent central bank, which has a dual mandate of maintaining stable prices and low unemployment, would typically be inclined to cut rates to support employment.

The US economy shed 92,000 jobs in February while unemployment crept up.

But the Fed also uses higher interest rates to rein in inflation, meaning policymakers are in a tough spot.

Even if the pre-war economy was in decent shape, "if energy prices remain close to current levels, it will more than offset the boost from fiscal stimulus we had anticipated," warned Michael Pearce of Oxford Economics.

That could prompt a downward revision to forecasts for consumer spending -- a key growth driver -- in the first half of 2026, he said.

aha-bys/msp

US

Mideast war plunges Germany's energy-hungry industry into crisis

BY SAM REEVES AND JEAN-PHILIPPE LACOUR

Christian Kullmann, CEO of chemical company Evonik, warned the war would accelerate the decline of Germany's energy-intensive industries.

Germany's energy-hungry industries are sounding the alarm about the devastating impacts of the Middle East war as companies battle problems from surging power costs to snarled supply chains.
Christian Kullmann, CEO of chemical company Evonik, warned the war would accelerate the decline of Germany's energy-intensive industries.

Germany's energy-hungry industries are sounding the alarm about the devastating impacts of the Middle East war as companies battle problems from surging power costs to snarled supply chains.

From chemicals to steel and cement, Europe's biggest economy is a major producer of industrial goods that require huge quantities of power to make, and Germany imports much of its energy.

The price jumps triggered by the conflict and closure of key energy route the Strait of Hormuz, which has pushed oil above $100, is a hammer blow to traditional manufacturers who were already struggling.

Adding to the problems is chaos in global supply chains, which industry groups warn is leading to bottlenecks for vital basic inputs for manufacturing.

"Our companies are currently operating in absolute crisis mode," said Wolfgang Grosse Entrup, chief executive of the VCI association representing chemical firms, one of Germany's main industrial sectors.

"The signals we are receiving, particularly from small and medium-sized enterprises, are in some cases dramatic," he said, adding that the "longer the war lasts, the more severe the consequences will be".

With the war, that began with US-Israeli strikes on Iran, approaching the end of its second week, the signs of strain are clear among German firms.

SKW Piesteritz, a maker of agricultural chemicals in the eastern state of Saxony-Anhalt, has had to reduce production of nitrogen-based fertiliser due to price rises for gas, a key input.

This is despite stronger demand due to fertiliser shortages globally caused by the closure of the Strait of Hormuz.

"These price jumps are threatening for SKW Piesteritz if the prices for the main raw material cannot be passed on to customers", managing director Carsten Franzke told AFP.

"We are currently seeing what happens when we fail to protect our own basic chemicals industry in Germany."

New blow for industry

While some larger businesses stress it is too early to assess the fallout, they were clear that a drawn-out conflict and persistently higher energy costs would be very bad news.

Industrial giant Thyssenkrupp's steel-making business, already in dire straits due to fierce Asian competition, said in a statement to AFP that a "permanently higher gas price would have an impact on production costs".

Heidelberg Materials, one of the world's top cement makers, gave a similar warning.

"A sustained rise in electricity prices would have significant consequences for the costs of cement production, particularly in Europe," a company spokesman told AFP, while noting the impact for this year would likely be limited due to long-term power contracts.

For Seifert Logistics, which transports goods by truck, the impact has been more immediate, with its diesel costs soaring 50 percent since the outbreak of the war.

CEO Axel Frey told AFP that rising prices are usually passed on to customers but this can often take several months.

"In recent days, we have been on the phone with customers around the clock to adjust prices more quickly," he told AFP, adding however that the firm had faced such situations before and predicted it would weather the storm.

Green power 'resilience'

Some major German corporations hope they won't be as heavily impacted as they have in recent years shifted away from fossil fuels and towards renewables such as solar and wind.

Industrial conglomerate Siemens said it had slashed its consumption of fossil fuels by around 40 percent since 2022, noting its "decarbonisation strategy" had made it "more resilient".

The economy ministry also stressed the government had already announced measures in recent times to protect industry from high power costs, including electricity subsidies for certain sectors and reductions in taxes.

But overall the fallout from the war is another blow for Europe's traditional industrial powerhouse as it is struggling to rebound after a long period in the doldrums.

The Ifo Institute said this week a drawn-out conflict would put a brake on the recovery, reducing growth this year down from one percent to a meagre 0.6 percent.

Christian Kullmann, CEO of chemical company Evonik, warned the war would accelerate the decline of Germany's energy-intensive industries.

"The rise in gas and oil prices will eat through the entire value chain," he told news outlet Der Spiegel.

"The tender buds of a German economic recovery may not be crushed by the war in the Middle East, but they will certainly be significantly damaged."

sr/fz/rl

US

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