Paris (France) (AFP) – Here are the latest economic events in the Middle East war:
– **US stocks down, oil prices rise**
Wall Street’s main indexes ended the day lower with traders wary of what comes next in the conflict. “It’s tough to have conviction one way or the other, knowing you can get burned,” said Patrick O’Hare of Briefing.com. European stocks largely held steady, while oil prices climbed as enthusiasm waned over the prospect of a negotiated agreement between the United States and Iran to end the war. Brent crude, the benchmark international oil contract, surged 4.6 percent to $104.49. It has risen more than 40 percent since the start of the war.
– **Philippines declare ‘energy emergency’**
Philippine President Ferdinand Marcos declared a state of “national energy emergency,” citing risks to the domestic fuel supply and energy stability. The state of emergency was declared hours after the country’s energy secretary said the Philippines planned to boost the output of its coal-fired power plants to keep electricity costs down as the war wreaks havoc with gas shipments.
– **Sri Lanka switches off lights**
Sri Lanka ordered street lights, neon signs, and billboard lighting to be switched off as part of measures to cut energy consumption by 25 percent and tackle supply shortages. Government spokesman Nalinda Jayatissa said all state institutions had been asked to reduce the use of air conditioning. Sri Lanka has already raised fuel prices by a third, and last week, President Anura Kumara Dissanayake urged electric car owners to avoid overnight charging.
– **Economic activity slows**
Business activity in the eurozone and the United States slowed in March as war in the Middle East drove energy prices higher and disrupted global supply chains, surveys showed. The HCOB Flash Eurozone purchasing managers’ index (PMI) published by S&P Global fell to 50.5 from 51.9 in February. A reading above 50 indicates growth, while a figure below 50 shows contraction. “The flash Eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. Meanwhile, the initial reading for the S&P composite US PMI dipped to an 11-month low of 51.4 points in March from 51.9 points in February.
– **France cuts growth outlook**
France’s INSEE statistics agency trimmed its growth forecast for the first and second quarters of this year to 0.2 percent as the country’s economy is “struck by global turmoil.”
– **Bangladesh hikes jet fuel costs**
Bangladesh raised jet fuel prices by 79 percent as costs surge in the wake of the war. The order by the Bangladesh Energy Regulatory Commission, the second this month, means jet fuel prices have surged by 111 percent since the start of the war.
– **Ireland cuts fuel taxes**
Ireland slashed the excise duty on petrol and diesel in a bid to stem surging prices at filling stations. Excise duty on diesel will fall by 20 euro cents a litre and by 15 cents a litre on petrol until the end of May, said Irish prime minister Micheal Martin.
– **Vietnam to cut domestic flights**
Vietnam’s national air carrier will suspend nearly two dozen domestic flights a week starting next month because of limited fuel supplies caused by the Middle East war, the nation’s aviation authority said. Major domestic routes and international flights are being maintained, though Vietnamese airlines are working on adding fuel surcharges on international routes.
– **Airlines extend flight suspensions**
German aviation giant Lufthansa said all services across the Middle East were cancelled until the end of April due to the “volatile situation.” Air France and its budget airline Transavia also extended flight suspensions to destinations across the Middle East. Hong Kong carrier Cathay Pacific said it has extended its flight suspensions to and from Dubai and Riyadh by a month until May 31.
© 2024 AFP
