Oil and gas important in times of conflict, Saudi Aramco CEO says
KUALA LUMPUR, June 16 (Reuters) - The importance of oil and gas can't be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco (2222.SE), opens new tab told an energy conference on Monday.
Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.
Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
28 minutes ago
- Sky News
Israel-Iran conflict poses new cost of living threat - here's why
The UK's cost of living crisis hangover is facing fresh pressure from the Israel-Iran conflict and growing tensions across the Middle East. Whenever the region, particularly a major oil-producing country, is embroiled in some kind of fracas the potential consequences are first seen in global oil prices. The Middle East accounts for a third of world output. Iran's share of the total is only about 3% but it is the second largest supplier of natural gas. Add to that its control of the key Strait of Hormuz shipping route, you can understand why any military action involving Iran has huge implications for the global economy at a time when a US-inspired global trade war is already playing out. Global oil prices jumped by up to 13% on Friday as the Israel-Iran conflict ramped up. It was the biggest one day leap seen since Russia invaded Ukraine in February 2022, which gave birth to the energy-driven cost of living crisis. From lows of $64 a barrel for Brent crude, the international benchmark, earlier this month, the cost is currently 15% higher. Iran ships all its oil to China because of western sanctions so the world's second-largest economy would have the most to lose in the event of disruption. Should that happen, China would need to replace that oil by buying elsewhere on the international market, threatening higher prices. 1:42 How are natural gas prices holding up? UK day ahead prices are 15% up over the past week alone. Europe is more dependent on Middle East liquefied natural gas (LNG) these days because of sanctions against Russia. The UK is particularly exposed due to the fact we have low storage capacity and rely so much on gas-fired power to keep the lights on and for heating. The day ahead price, measured in pence per therm (I won't go into that) is at 93p on Monday. It sounds rather meaningless until you compare it with the price seen less than a week ago - 81p. The higher sum was last seen over the winter when demand is at its strongest. 0:18 What are the risks to these prices? Market experts say Brent crude would easily exceed $100 a barrel in the event of any Iranian threats to supplies through the Strait of Hormuz - the 30-mile wide shipping lane controlled by both Iran and Oman. While Iran has a history of disrupting trade, analysts believe it will not want to risk its oil and gas income through any blockade. What do these price increases mean for the UK? There are implications for the whole economy at a time the chancellor can least afford it as she bets big on public sector-led growth for the economy. We can expect higher oil, gas and fuel costs to be passed on down supply chains - from the refinery and factory - to the end user, consumers. It could affect anything from foodstuffs to even fake tan. Increases at the pumps are usually first to appear - probably within the next 10 days. Prices are always quick to rise and slow to reflect easing wholesale costs. Energy bills will also take in the gas spike, particularly if the wholesale price rises are sustained. The energy price cap from September - and new fixed term price deals - will first reflect these increases. How does this all play out in the coming months? So much depends on events ahead. But energy price rises are an inflation risk and potential threat to future interest rate cuts. While LSEG data shows financial markets continuing to expect a further two interest rate cuts by the Bank of England this year, the rate-setting committee will be reluctant to cut if the pace of price growth is led higher than had been expected. At a time when employers are grappling higher taxes and minimum pay thresholds and consumers a surge in bills following the 'awful April' hikes to council tax, water and other essentials, a fresh energy-linked inflation spike is the last thing anyone needs.
BreakingNews.ie
31 minutes ago
- BreakingNews.ie
Israel's military claims ‘aerial superiority' over Iran's capital
Israel's military claimed on Monday to have achieved 'aerial superiority' over Iran's capital. The military says it has degraded Iranian air defences and missile systems to the point that its planes can now operate over Tehran without facing major threats. Advertisement It says Israel now controls the skies from western Iran to Tehran. It came after Iran fired a new wave of missile attacks on Israel early on Monday, triggering air raid sirens across the country as emergency services reported at least five killed and dozens more wounded in the fourth day of open warfare between the regional foes. One missile fell near the American consulate in Tel Aviv, and its fallout caused minor damage, US Ambassador Mike Huckabee said on X. There were no injuries to American personnel. The site where an Iranian missile struck in Haifa, Israel (Ariel Schalit/AP) Iran announced it had launched some 100 missiles and vowed further retaliation for Israel's sweeping attacks on its military and nuclear infrastructure, which have killed at least 224 people in the country since Friday. Advertisement Israel said so far 24 people have been killed and more than 500 injured as Iran launched more than 370 missiles and hundreds of drones. In response the Israeli military said fighter jets had struck 10 command centres in Tehran belonging to Iran's Quds Force, an elite arm of its Revolutionary Guard that conducts military and intelligence operations outside Iran. Powerful explosions, likely from Israel's defence systems intercepting Iranian missiles, rocked Tel Aviv shortly before dawn on Monday, sending plumes of black smoke into the sky over the coastal city. Authorities in the central Israeli city of Petah Tikva said that Iranian missiles had hit a residential building there, charring concrete walls, shattering windows and ripping the walls off multiple apartments. Advertisement The Israeli Magen David Adom emergency service reported that two women and two men — all in their 70s — and one other person were killed in the wave of missile attacks that struck four sites in central Israel. 'We clearly see that our civilians are being targeted,' said Israeli police spokesman Dean Elsdunne outside the bombed-out building in Petah Tikva. 'And this is just one scene. We have other sites like this near the coast, in the south.' Petah Tikva resident Yoram Suki rushed with his family to a shelter after hearing an air raid alert, and emerged after it was over to find his apartment destroyed. 'Thank God we were OK,' the 60-year-old said. Advertisement Despite losing his home, he urged Israeli Prime Minister Benjamin Netanyahu to keep up the attacks on Iran. 'It's totally worth it,' he said. 'This is for the sake of our children and grandchildren.' In addition to those killed, the MDA said paramedics had evacuated another 87 wounded people to hospitals, including a 30-year-old woman in serious condition, while rescuers were still searching for residents trapped beneath the rubble of their homes. 'When we arrived at the scene of the rocket strike, we saw massive destruction,' said Dr Gal Rosen, a paramedic with MDA who said he had rescued a four-day-old baby as fires blazed from the building. Advertisement During an earlier barrage of Iranian missiles on central Israel on Sunday, Iranian Foreign Minister Abbas Araghchi said that Iran will stop its strikes if Israel does the same. People evacuate after a missile launched from Iran struck Tel Aviv on Monday (Baz Ratner/AP) But after a day of intensive Israeli aerial attacks that extended targets beyond military installations to hit oil refineries and government buildings, the Revolutionary Guard struck a hard line on Monday, vowing that further rounds of strikes would be 'more forceful, severe, precise and destructive than previous ones'. Health authorities also reported that 1,277 were wounded in Iran, without distinguishing between military officials and civilians. Rights groups, such as the Washington-based Iranian advocacy group called Human Rights Activists, have suggested that the Iranian government's death toll is a significant undercount. Human Rights Activists says it has documented more than 400 people killed, among them 197 civilians. Israel argues that its assault on Iran's top military leaders, uranium enrichment sites and nuclear scientists was necessary to stop Iran from obtaining a nuclear weapon. Iran has always insisted its nuclear programme is peaceful, and the US and others have assessed that Tehran has not pursued a nuclear weapon since 2003. But Iran has enriched ever-larger stockpiles of uranium to near weapons-grade levels in recent years and was believed to have the capacity to develop multiple weapons within months if it chose to do so.
Reuters
an hour ago
- Reuters
Israel does not intend to physically harm Tehran residents, defence minister says
JERUSALEM, June 16 (Reuters) - Israel has no intention of deliberately harming the residents of Tehran, Israeli Defence Minister Israel Katz said, walking back earlier comments he had made on Monday. "I wish to clarify the obvious: there is no intention to physically harm the residents of Tehran as the murderous dictator does to the residents of Israel," Katz said in a statement. "The residents of Tehran will have to pay the price of dictatorship and evacuate their homes from areas where it will be necessary to attack regime targets and security infrastructures in Tehran."
