Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
**Crude sinks**
Crude prices fell more than two percent Friday after Israeli Prime Minister Benjamin Netanyahu said the war with Iran could finish sooner than many feared. Traders also welcomed US President Donald Trump’s remarks that Israeli forces would not target any more of Tehran’s energy infrastructure. Both main oil contracts sank, though Brent remains at about $105 and West Texas Intermediate about $93. On Thursday, Brent jumped almost six percent to hit $119 a barrel before falling back to around $109. Gold and silver prices shed more than six percent and 13 percent respectively, as rising inflation fears dampened expectations for near-term interest rate cuts.
**Macron says eyeing UN action on Hormuz**
French President Emmanuel Macron said his country planned to talk with permanent members of the UN Security Council about establishing a UN framework — once the ongoing exchange of fire had ended — to secure navigation in the Strait of Hormuz. “We have initiated an exploratory process, and we will see in the coming days whether it stands a chance of succeeding,” he told reporters in Brussels following a European summit.
**Attacks on Gulf energy infrastructure**
Qatar reported “extensive” damage Thursday to the world’s largest liquefied natural gas (LNG) facility following Iranian strikes, sparking fears for global energy supplies. Qatar’s energy minister said the damage from the attacks slashed the site’s export capacity of liquefied natural gas (LNG) by 17 percent and would take years to repair. Qatar is one of the world’s biggest LNG producers, alongside the United States, Australia, and Russia. Two Kuwaiti oil refineries were also hit, as well as the Saudi oil refinery Samref in the industrial zone of the Red Sea port of Yanbu. The United States announced the approval of $16.46 billion in military sales to the United Arab Emirates and Kuwait, which have been hit hard by fallout from the Iran war.
**UN urges safe shipping ‘corridor’**
The UN’s maritime body called for the creation of a safe shipping “corridor” in the Gulf to evacuate stranded vessels and seafarers, after an emergency meeting that also condemned Iran. Following two days of urgent talks in London, the International Maritime Organization (IMO) said the “safe maritime corridor” should be established as “a provisional and urgent measure”. Six Western allies, including Britain, France, Germany, and Japan, earlier stated they were ready “to contribute to appropriate efforts to ensure safe passage through the Strait of Hormuz”. Paris, Rome, and Berlin later stressed any initiative would take place only after a ceasefire was reached.
**ECB cuts 2026 growth forecast**
The European Central Bank cut its growth forecast and raised inflation forecasts for this year as it warned of the energy price shock from the Mideast war. ECB staff now see eurozone GDP growth reduced to 0.9 percent in 2026 and raised inflation projections to 2.6 percent for the year.
**Germany weighs energy windfall tax**
Germany is considering the introduction of a windfall tax on hefty energy-sector profits after oil prices surged due to the Middle East war, a finance ministry source told AFP. Finance Minister Lars Klingbeil is mulling the introduction of a special tax “to skim off excessive crisis profits” earned from high energy prices, the ministry source said.
**US may ‘unsanction’ Iranian crude**
US Treasury Secretary Scott Bessent said Washington might “unsanction” Iranian oil that is already being shipped to ease oil prices. In comments to Fox Business, Bessent also said the US government could release more oil from its strategic reserves.
**Gulf flights**
The war has severely disrupted air traffic over Gulf countries, which have carved out a niche as a stopover for long flights between the United States, Europe, Asia, and Oceania. Many European travelers have found themselves stranded in Asia, unable to pass through the key hubs of Dubai, Doha, or Abu Dhabi — the respective headquarters of Emirates, Qatar Airways, and Etihad. “It is a bit of a wake-up call to show how dependent the European continent is on Gulf carriers,” the chief executive of Air France-KLM, Benjamin Smith, told a press conference of the Airlines for Europe (A4E) association.
© 2024 AFP
