Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
– **Iran’s Hormuz offer to Japan**
Iran is willing to help Japanese ships sail the Strait of Hormuz, a vital route for global fuel supplies, Foreign Minister Abbas Araghchi told Kyodo News in an interview published on Saturday. In the telephone interview conducted on Friday, Araghchi denied closing the passageway, saying instead that countries attacking Iran face restrictions while others were being offered assistance. He added that Iran was prepared to ensure safe passage for Japan. Iran’s de facto blockade of the Strait of Hormuz, through which 20 percent of the world’s oil and gas normally flows, and the numerous attacks on energy infrastructure in the Middle East have sent crude oil prices soaring.
– **United trims flights as jet fuel costs spike**
United Airlines announced Friday that it was scaling back its flight capacities because of soaring jet fuel costs, which the US airline anticipates will keep rising as the war in the Middle East continues. United chief Scott Kirby said, “our plans assume oil goes to $175 a barrel and doesn’t get back down to $100 a barrel until the end of 2027.” Earlier, the head of the IATA airline trade association Willie Walsh said an increase in ticket prices is “inevitable” as airlines respond to soaring prices of jet fuel.
– **Iran oil sanctions eased**
The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington’s latest step to stem a supply crisis over the Middle East war. The move by the Office of Foreign Assets Control follows a similar lifting of sanctions on Russian oil at sea. Iranian oil ministry spokesman Saman Ghoddoosi earlier wrote on X that “Iran basically has no surplus crude oil left on the water”.
– **US threatens Kharg oil facility**
The White House said the US military could “take out” Kharg Island whenever it wanted, as US media reported that up to 2,500 additional Marines are being deployed to the Middle East. Kharg, around 30 kilometres (19 miles) off the Iranian mainland, handles almost all of Iran’s crude exports.
– **Damage to Qatar’s Ras Laffan could have high cost**
An Iranian attack on Qatar’s huge Ras Laffan natural gas complex caused “extensive damage” that Qatar’s state energy company said could cost $20 billion a year in lost revenue and take five years to repair.
– **Kuwait refinery ablaze**
Drone attacks hit Kuwait’s Mina Al-Ahmadi oil refinery on Friday, causing several fires but no casualties, state media said. Several refinery units were shut down, the official Kuwait News Agency reported. The Kuwaiti army later said that the fire was brought under control. Iranian authorities had vowed to retaliate after an Israeli strike on Wednesday damaged its South Pars gas field, which draws on the world’s biggest known gas reserve and is vital for domestic supplies.
– **Vietnam fuel prices soar**
The cost of petrol rose more than 20 percent in Vietnam after the government announced an overnight hike amid fears of oil and gas shortages caused by the war. Southeast Asian countries have borne the brunt of surging diesel prices following strikes against energy infrastructure in Iran and the Gulf states. The increase has seen the price of regular petrol and diesel rise more than 50 and 70 percent respectively since the conflict began.
– **Spain chops fuel taxes, freezes rents**
Spanish Prime Minister Pedro Sanchez announced a five billion euro ($5.8 billion) package aimed at offsetting the economic impact of the Middle East conflict, including a “drastic reduction” in energy taxes. The package’s 80 measures include cuts to the value-added tax on gas and fuel, which could lower prices at the pump by up to 30 cents per litre. Sanchez also said the government would cap the maximum price of butane and propane, and slash electricity taxes by 60 percent.
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© 2024 AFP
