Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
– **Kuwait says port damaged**
Kuwait’s main commercial port was damaged in a drone attack, authorities said, as Iran pressed on with its campaign in the Gulf in retaliation for US-Israeli strikes. The Shuwaikh port was targeted at dawn “by enemy drones; preliminary reports revealed material damage but no human casualties,” the Kuwait port authority said in a statement on X.
– **Vietnam waives green tax**
Vietnam temporarily waived an environmental tax on fuel to cut soaring petrol prices by more than a quarter, the trade ministry said. The environmental protection tax rate on gasoline, diesel, and aviation fuel would be slashed to zero from Friday to April 15, the ministry said. “This is considered an urgent and effective solution to stabilise the petroleum market and ensure national energy security amidst the escalating conflict in the Strait of Hormuz, which is creating the ‘biggest energy bottleneck ever’,” the trade ministry added.
– **Oil rises**
Oil prices inched up Friday even as US President Donald Trump pushed back a deadline for Iran to reopen the Strait of Hormuz. Brent crude is up 0.75 percent at 0230 GMT, selling at $108.82 a barrel, while West Texas Intermediate is up 0.35 percent at $94.81. Brent is up almost 50 percent since the war began, while WTI has risen around 40 percent. Stock markets in Asia were mixed.
– **Cryptocurrencies aiding Iran**
Iran has witnessed massive cryptocurrency flows since the start of the Middle East conflict. Experts say they are being used to circumvent sanctions placed on Iran’s Revolutionary Guards as well as serving as a financial safe haven for civilians hit by soaring inflation. In an unusually large movement, more than $10 million worth of cryptocurrencies left Iranian exchange platforms between February 28—the first day of Israeli-US airstrikes—and March 2, according to data analytics firm Chainalysis.
– **Japan to ease coal restrictions**
Japan’s government plans to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch caused by the Middle East war, an official told AFP. Power suppliers have been required to keep the operating rate of coal-fired thermal power stations that emit large amounts of carbon dioxide at or below 50 percent. However, the government now intends to allow full operation of older, less efficient coal-fired plants for a year from the new fiscal year starting April, said Takahide Soeda, an industry ministry official.
– **India cuts fuel taxes**
India has reduced taxes on diesel and petrol, Finance Minister Nirmala Sitharaman said in a statement. The South Asian nation, one of the world’s largest crude oil importers, relies on foreign suppliers for more than 85 percent of its oil needs. Sitharaman stated that taxes on petrol and diesel have been slashed by 10 rupees ($0.11) a litre to “provide protection to consumers from rise in prices.”
– **World Bank to respond ‘at scale’**
The World Bank announced it was prepared to provide immediate financial assistance to emerging market countries hit by the economic fallout of the conflict, stating it was “ready to respond at scale.” The Washington-based multilateral lender indicated that a number of its clients in affected countries had already reached out as the crisis began to impact commodity prices and logistics.
– **Spain approves war-impact measures**
Spain’s parliament approved a sweeping package worth five billion euros ($5.8 billion) aimed at curbing the economic impact of the Middle East war, which includes steep cuts to energy taxes.
– **Poland cuts fuel taxes**
Poland’s prime minister announced Thursday a series of measures to cushion the impact of soaring fuel costs, including reduced taxes and price ceilings. The value-added tax was being reduced on petrol and diesel from 23 percent to eight percent, and a maximum price would be set on a daily basis by the energy ministry, said Donald Tusk.
© 2024 AFP
