Wall Street has fallen on Friday, and WTI oil surpasses $100
The New York Stock Exchange fell on Friday, worried about the prolongation of the war in the Middle East and its effects on inflation and economic growth, with the Dow Jones index losing 1.73% and the broader S&P 500 index losing 1.67%, while the Nasdaq, with a strong technological composition, fell 2.15%. European stock exchanges ended the week in the red.
The price of Brent oil for May delivery rose 4.22% to $112.57, exceeding $110 for the first time since Monday’s slump, and American WTI rose 5.46% to $99.64. In post-settlement trading on the oil market (18:30 GMT), it crossed the symbolic $100 threshold.
The yield on U.S. 10-year bonds tightened further to 4.48% from 4.42% the previous day at the close, as investors wary of inflation risks demanded higher interest rates for lending.
Energy spike: European ministers meeting on Tuesday
Energy ministers from European Union countries will meet on Tuesday via videoconference to discuss “energy supply security,” announced Cyprus, currently holding the rotating EU presidency. American-Israeli strikes against Iran and Tehran’s response in the Gulf have pushed up global oil prices, with Iran maintaining control of this crucial seaway for international trade.
France announces fuel assistance
The French government announces “targeted aid” in April for sectors most affected by soaring fuel prices. Struggling small road transport companies and fishermen will receive assistance of 20 euro cents per liter of fuel, while agricultural diesel will be exempt from tax during the period. “We are given a breath of fresh air. But let’s not be mistaken and think this will be enough to get the industry out of the crisis chain hitting it,” reacted Josée Jouneau, president of the Ligurian fishing committee, to AFP.
Back to coal
The energy crisis could force Germany to keep coal-fired power plants active longer if the war prolongs and causes shortages, according to the German Chancellor Friedrich Merz. “We must supply this country with electricity. I am not ready to jeopardize the heart of our industry simply because we have opted for exit plans that have become unrealistic,” declared the chief executive.
U-turn in the Strait of Hormuz
The Iranian Revolutionary Guards announced that three container ships were forced to turn back in the Strait of Hormuz. They claim that this strategic route is closed to ships coming to or from ports linked to “the enemy.” “The energy industry underestimates the disruptions and geopolitical risks that await us,” said Mark Brownstein of AFP, vice president of an environmental association, from the CERAWeek forum in Texas.
Thailand says it has reached an agreement with Iran for the Strait of Hormuz
Thailand stated on Saturday that it has reached an agreement with Iran to allow its tankers to pass through the strategic Strait of Hormuz, which has been almost paralyzed since the beginning of the Middle East war. “An agreement has been reached to allow Thai oil tankers to transit safely through the Strait of Hormuz, thus helping to ease concerns about fuel delivery to Thailand,” said Thai Prime Minister Anutin Charnvirakul at a press conference.
The Indonesian government was in talks with Iran on Saturday to allow smooth passage for its tankers through the Strait of Hormuz, with Tehran responding favorably to Jakarta’s diplomatic efforts on this front, reported a spokesperson for the Ministry of Foreign Affairs. The “Pertamina Pride” and the “Gamsunoro,” two tankers belonging to a subsidiary of the state-owned energy company Pertamina, are still in the Persian Gulf awaiting passage through the strait, according to a company spokesperson.
Maersk operations suspended in Oman
The Danish shipping company Maersk announced on Saturday on its website that the port of Salalah in the Sultanate of Oman, struck by a drone attack earlier in the day, was immediately evacuated and its operations suspended for 48 hours. The Omani authorities had earlier indicated that the attack injured a worker and caused minor damage to this port, one of the country’s main ports. The port is managed by a Maersk subsidiary, APM Terminals. It had already been hit since the beginning of the conflict in the Middle East and had to suspend its operations.
Air traffic: fewer cancellations, but lighter schedules
The cancellation rate for flights in the Middle East has significantly increased since the early days of the war, but the number of planned air trips has also decreased in parallel, according to a specialized company.
Thousands of tons of tea blocked in Kenya
Between 6,000 and 8,000 tons of tea, worth around $24 million, are blocked at the Kenyan port of Mombasa due to the war in the Middle East, reported the East African Tea Trade Association. Kenyan meat and horticulture are also feeling the impact of the conflict, recording millions of dollars in losses.
Production halted at a major Iranian steel mill
Production at a large steel mill in Iran was halted following the American-Israeli strikes, Iranian media reported on Saturday. According to a statement from Khuzestan Steel Company, a company based in southwest Iran, quoted by the Iranian newspaper Shargh, the “production lines of the factory were stopped” after several units and steel installations were hit during the strikes.
