Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
– **EU rejects Hormuz tolls**
The European Union said Thursday that freedom of navigation in the Strait of Hormuz must be ensured with “no payment or toll whatsoever,” after Iran suggested it could charge for letting ships through the vital Gulf waterway. “International law provides for the freedom of navigation, which means…basically no payment or toll whatsoever,” said European Commission spokesman Anouar El Anouni. “Freedom of navigation is a public good and needs to be ensured.”
– **IMF to cut growth forecasts**
The International Monetary Fund will lower global growth forecasts because of the war, said managing director Kristalina Georgieva, warning of the conflict’s “scarring effects” despite the fragile ceasefire between the United States and Iran. Georgieva said the IMF expected to have to provide up to $50 billion in immediate financial assistance to countries affected by the war. She added that food insecurity because of transport and supply chain disruptions caused by the war was expected to affect at least 45 million people and “even in a best case, there will be no neat and clean return to the status quo ante.”
– **Oil bouncing around**
The main US oil contract jumped but then settled below $100 a barrel on investor concerns over the US-Iranian ceasefire holding and as the key Strait of Hormuz remained largely blocked to traffic. West Texas Intermediate (WTI) rallied at one point by seven percent to just over $101 a barrel before sliding back to around $98, while the main international benchmark, Brent North Sea crude, was up just under one percent at $95.60. Crude futures had plunged Wednesday after the United States and Iran agreed to a two-week ceasefire, which has been placed in doubt by Israel’s ongoing attacks against Iran-backed militant group Hezbollah in Lebanon. Major European stock markets were also down, Germany’s DAX notably closing down 1.1 percent.
– **Non-Iranian tanker crosses Strait**
The first non-Iranian oil tanker passed through the Strait of Hormuz since the ceasefire was announced, monitor MarineTraffic showed. The MSG, a Gabon-flagged oil tanker, passed through the strategic waterway loaded with around 7,000 tonnes of Emirati fuel oil and is headed to Aegis Pipavav, India, according to the maritime monitor. Traffic through the crucial shipping lane signals it has not meaningfully reopened since the two-week truce took effect on Wednesday. Just two other tankers — both Iran-flagged — and six bulk carriers have been through the strait since Wednesday, according to MarineTraffic owner Kpler.
– **Inject gas now**
It is “critical” to start building up European gas reserves “as early as possible,” said the continent’s network transmission operator, ENTSOG. “Europe enters the summer injection season from a much lower storage level than in recent years, at a time when global energy markets and supply are under pressure,” said ENTSOG general director Piotr Kus. “It is critical to start injecting gas as early as possible, even as early as April, and continue filling until November, to ensure adequate levels for the winter ahead,” he added.
– **Some comfort**
The European development bank said it was unlocking five billion euros ($5.9 billion) to aid economies hit by the Middle East war. The European Bank for Reconstruction and Development — founded to help former Soviet bloc nations embrace free-market economies before extending its reach to the Middle East and Africa — said it would “deploy 5 billion euros in 2026 in economies impacted by Middle East conflict.”
– **Air France extends suspensions**
Air France has extended the suspension of flights to key destinations in the Middle East until May 3, citing security risks from the war. A source close to the company said France’s flagship carrier had made the decision to extend the suspensions before Tuesday’s ceasefire announcement.
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© 2024 AFP
