Here are the latest economic events in the Middle East war on Wednesday:
– IEA Reserve Proposal Stabilises Oil Prices
The International Energy Agency (IEA) has proposed its largest-ever release of oil reserves to counter soaring crude prices driven by the US-Israeli war with Iran, the Wall Street Journal reported.
Oil prices, which have increased over supply concerns, stabilised following news of the proposal.
The reported release would exceed the 182 million barrels IEA member countries put on the market in 2022 following Russia’s invasion of Ukraine, the Journal said Tuesday.
A decision was expected Wednesday.
Saudi Arabia Intercepts Drones Heading To Oil Field
Saudi Arabia’s defence ministry said Wednesday that it intercepted two drones heading towards an oil field in the southeast of the country.
“Two drones heading towards the Shaybah oil field were intercepted and destroyed,” the ministry said in a post on X.
In later posts, it reported a further five interceptions of drones heading towards the oil field.
G7 To Discuss War’s Economic Impact
G7 leaders will meet by video conference later Wednesday to discuss the war’s economic consequences, particularly the “energy situation”, the French presidency said.
“This will be the first discussion on this issue between G7 members. Economic coordination is a key issue for an effective and useful response to the situation,” the Elysee said. The meeting will start at 1400 GMT.
European Bank Chief Vows To Control Inflation
European Central Bank chief Christine Lagarde said that “everything necessary” will be done to keep inflation in check during the war.
“We will do everything necessary to keep inflation under control and ensure that the French and the Europeans do not experience inflation increases like those we saw in 2022 and 2023,” partly caused by Russia’s invasion of Ukraine, Lagarde told French broadcasters.
Hormuz Confusion
The United States energy secretary said in a video on X that the US Navy had escorted an oil tanker through the Strait of Hormuz — but the post was deleted within minutes.
The White House subsequently stated that the US Navy had not escorted any tankers through the strategic Gulf passage.
Iran’s Revolutionary Guards said no US Navy vessel has “dared” approach the strait, which they virtually closed in retaliation for the US-Israeli strikes that killed their supreme leader.
Trump warned Iran not to place mines in the Strait.
Stocks Recover
The Paris and London stock markets gained over 1.5 per cent after European gas prices fell 15 per cent, helping ease concerns about a renewed surge in global inflation. Frankfurt ended the day up 2.4 per cent.
Asian stock markets rallied, with Seoul up more than five per cent and Tokyo ending with a gain of 2.9 per cent, but US stocks, which were in positive territory for much of Tuesday, finished mostly lower.
UAE Refinery
The region’s biggest single-site oil refinery, at Ruwais in the United Arab Emirates, was closed as a precaution after a drone attack on the industrial complex that houses it caused a fire, a source familiar with the situation told AFP.
A driver working at the complex, who requested not to be named, told AFP they saw “bursts of fire rising from the complex, with loud sounds like explosions”.
READ ALSO: Saudi Defense Ministry Intercepts Seven Drones ‘Heading To’ Oil Field
Egypt Hikes Fuel Prices
Egypt raised domestic fuel prices by up to 30 per cent, blaming “exceptional” global energy pressures caused by the war, which has disrupted oil supplies and shipping routes.
The increases, announced by the petroleum ministry, apply to gasoline, diesel, and natural gas used in vehicles.
India Tightens Gas Controls
India ordered tighter controls over natural and cooking gas following import disruptions, with restaurants warning the war could spark widespread closures.
The world’s most populous nation is the fourth-largest liquefied natural gas buyer and second-largest buyer of liquefied petroleum gas used for cooking — much of which is sourced from the Middle East.
AFP
