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Iraqi News
a day ago
- Business
- Iraqi News
Iraq may shift to pipelines to tackle possible closure of Strait of Hormuz
Baghdad ( – Regional tensions and Iranian threats to close the vital Strait of Hormuz may compel Iraq to reactivate outdated pipelines that previously carried a significant portion of its oil exports through Saudi Arabia and Syria. A $9 billion pipeline via Jordan that is now on hold might possibly be revived, according to Arabian Gulf Business Insight (AGBI). Iraq transports most of its crude oil exports via oil tankers through the Strait of Hormuz; however, Iran's ongoing threats to close the strait have caused concern in Baghdad. Nabil Al-Marsoumi, an energy and economics professor at Basra University, told AGBI that Iraq has alternative possibilities, such as pipelines, but political factors have always outweighed economic ones. Given the latest developments in the region, Iraq might seriously think about revitalizing these pipelines, according to Al-Marsoumi. If the Strait of Hormuz is closed, experts believe that Iraq will be unable to export more than 17 percent of its oil. In contrast, Saudi Arabia and the UAE will still be able to export approximately 85 percent and 68 percent of their petroleum, respectively, thanks to the pipelines they have constructed for this purpose.
Khaleej Times
03-04-2025
- Business
- Khaleej Times
Trump's tariff overhaul: A seismic shift for GCC oil sector
President Donald Trump's declaration of 'Liberation Day' on April 2 has sent shockwaves through global markets, marking a dramatic escalation in trade hostilities with sweeping reciprocal tariffs. The move, which upends decades of trade norms, has placed the GCC economies— the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman—in a precarious position. With oil and gas exports accounting for 40-60 per cent of their GDP, the GCC now faces a destabilising economic landscape, strained US relations, and an accelerated pivot toward alternative markets, particularly China. The immediate fallout was evident in energy markets. Brent crude futures plunged by as much as 3.2 per cent to $72.98 a barrel, while US WTI crude dropped 3.4 per cent to $69.70 — the sharpest single-day decline in weeks. The sell-off reflects investor fears that Trump's tariffs, including a baseline 10 per cent levy on most imports and higher duties on select nations, could trigger a global trade war, stifling economic growth and curbing oil demand. Although the White House exempted oil and gas imports from the new tariffs, the broader implications for Gulf exporters remain severe. 'The US is a key market for Gulf oil and LNG. Even if crude isn't directly targeted, higher costs on petrochemicals and aluminum will squeeze margins,' said Joseph Webster of the Atlantic Council's Global Energy Center. The GCC's reliance on hydrocarbon exports makes it uniquely vulnerable. Saudi Arabia, the region's largest economy, ships roughly 10 per cent of its crude to the US, while Qatar has become a major LNG supplier to American buyers. Any disruption to these flows could force Gulf producers to either absorb higher costs or seek alternative markets—a difficult proposition given Asia's already saturated demand. Beyond oil, the GCC's trade-heavy economies are ill-prepared for a prolonged protectionist wave. The UAE and Bahrain, for instance, depend heavily on re-exports through hubs like Dubai's Jebel Ali port. A global supply chain slowdown could cripple these logistics networks, while Saudi Arabia's Vision 2030 diversification plans may stall if foreign investors retreat amid uncertainty. 'The GCC's small, open economies can't escape this,' said Valentina Pasquali, an analyst at AGBI. 'Trump's chainsaw to international commerce cuts deep here.' The tariffs also risk eroding the decades-old US-GCC alliance, traditionally anchored by oil-for-security arrangements. Trump's aggressive trade stance — coupled with his hardline policies on Iran — puts Washington at odds with Gulf leaders seeking stable economic partnerships. 'Trump's 'reciprocity trumps all' approach undermines traditional trade norms,' said Barbara C. Matthews, a trade specialist at the Atlantic Council. Ellen Wald of the Arab Center Washington DC noted: 'Gulf states have long balanced relations with the US and China, but these tariffs could push them further into Beijing's orbit.' Indeed, China's tariff-free trade deals and insatiable appetite for Gulf oil make it an attractive alternative. Saudi Aramco and Adnic have already deepened investments in Chinese refineries — a trend likely to accelerate if US market access tightens. While some nations, like Canada, have threatened counter-tariffs, Gulf states lack similar leverage. 'Oil is fungible—cutting off the US would just redirect flows to Asia, but at lower prices due to oversupply,' Webster said. The International Energy Agency (IEA) warns that persistent trade tensions could create a 1.5 million barrel-per-day surplus by late 2025, forcing Opec+ into another round of production cuts. Such a scenario would further strain Gulf budgets still recovering from the pandemic-driven oil crash. As GCC stock indices dipped slightly on April 3 — Saudi Arabia's Tasi fell 0.3 per cent, Qatar's QSI eased 0.1 per cent — the mood was one of cautious recalibration. Trump's 'Liberation Day' may symbolise US economic sovereignty, but for the Gulf, it presents a harsh new reality: an oil-dependent model under siege, alliances in flux, and a pressing need to accelerate diversification. Analysts said in the coming months, Gulf leaders will face a defining choice — whether to navigate the turbulence of Trump's trade war or hasten their pivot eastward. 'One thing is certain: the rules of global trade are being rewritten, and the GCC must adapt — or risk being left behind.'
Yahoo
02-04-2025
- Business
- Yahoo
Officials sound alarm as treasured export becomes more difficult to grow: 'More areas have to be planted'
Turkey consistently ranks atop the list of nations with the most tea drinkers. However, the country's production of tea is in jeopardy as extreme weather resulting from climate change threatens Turkish harvests. In addition to being the top tea drinkers in the world, the Turks have also been one of the biggest tea producers, standing at "fifth behind China, India, Kenya and Sri Lanka," according to Arabian Gulf Business Insight. Unfortunately, rising temperatures are impacting the country's yield of unique, strong-tasting leaves, which typically amount to 270,000 metric tons of tea each year, AGBI reported. Drier, hotter conditions — consequences of heat-trapping gases building up in the atmosphere — are inhospitable to Turkish tea crops planted along the Black Sea region. "Climate change is harming tea production due to rising temperatures; tea loves rain and humidity," Mustafa Yılmaz Kar, secretary general of the Turkish Tea Industrialists and Businessmen's Association, told AGBI. Kar continued, "To offset losses in production more areas have to be planted." But farmers also have to compete with increasing urbanization for the use of suitable land, per AGBI. And previous reports, such as from Yale Environment 360, have described Turkey as facing a water crisis that could compound growing challenges too. As Turkey's tea crops face an uncertain future due to the climate crisis, the country's producers and consumers could feel the strain of higher prices and limited supplies. In addition to impacts on the local economy, the consequences could be felt globally too. Consumers worldwide have already seen increased costs for food items like chocolate, coffee, and olive oil. In Japan, climate-related hits to quality rice harvests have caused the country to rely more on food imports, which typically come with higher price tags. Do you worry about how much food you throw away? Definitely Sometimes Not really Never Click your choice to see results and speak your mind. According to AGBI, some Turkish producers have started to experiment with herbal and flavored tea products to appeal to a wider range of tastes. But these varieties could still be vulnerable to increasing temperatures and lack of water. To improve climate resilience, some efforts have been underway to support sustainability in the industry. A partnership between the Rainforest Alliance and JDE Peet's — a Netherlands-based coffee and tea company — was designed to train thousands of smallholder farmers in Turkey in sustainable practices. Separately, there have been efforts to test drought-resistant tea types, which could address crop loss and price hikes. There are also simple habits that individuals can practice to save money and food. Consumers can always ensure that they eat everything in their cupboards before venturing out to buy more groceries. Planning grocery trips in advance and reducing food waste as much as possible can also help to prevent waste and reduce costs in the long run. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
12-03-2025
- Business
- Yahoo
Iraq accelerates import plans for liquefied natural gas
Iraq is building a permanent offshore liquefied natural gas terminal, joining a growing list of nations turning to LNG imports for long-term energy needs. Baghdad was forced to accelerate construction, according to news site AGBI, after the US revoked a waiver allowing purchases of Iranian gas via pipeline, part of Washington's efforts to reapply 'maximum pressure' on Tehran. Baghdad's shift to LNG imports comes as global production surges. Iraq is in talks with Qatar, which plans to expand overall output by 85% by 2030, for supplies. ADNOC Gas is also doubling its capacity. And the US — now the world's top LNG exporter — is ramping up production and is expected to capture a third of global market share by the end of the decade.
Yahoo
03-03-2025
- Business
- Yahoo
Government officials announce $10 billion high-speed rail project — here's how it could revolutionize transportation for millions
Morocco's push to overhaul its train system with better coverage and expanded high-speed rail could be steaming ahead with an announced $9.6 billion investment plan. The plan, described in Newsweek, would be a crucial step in Morocco's broader vision to revolutionize rail travel by 2040. Government leaders of the North African country hope to nearly double the number of cities served by rail and increase train coverage from today's 51% of the population to 87%. The $9.6 billion investment would be a key part of that expansion. Would you support a tax increase to pay for high-speed rail in your state? Absolutely Probably I don't know No way Click your choice to see results and speak your mind. Abdessamad Kayouh, Moroccan minister of transport and logistics, said the plan includes a high-speed railway from coastal Kenitra to inland Marrakech. This would link to the existing Al Boraq high-speed line that already connects Tangier to Casablanca, the country's largest city and its commercial capital. Beyond high-speed rail, the initiative also includes purchasing new trains and upgrading 40 rail stations nationwide. Morocco is already a leader in African rail development thanks to Al Boraq, which was inaugurated in 2018 and is the continent's only high-speed train. Morocco is now racing to upgrade its trains further as part of a wider logistics overhaul intended to boost its economy and improve access for when the kingdom co-hosts the 2030 FIFA World Cup with Spain and Portugal. "Morocco is pursuing plans to pump heavy investments into the rail infrastructure to accommodate the rapid increase in passengers," Kayouh said in December, per AGBI. As governments around the world eye ambitious infrastructure development plans, high-speed rail projects are typically high on the wishlist. Upgrading train lines is an effective way to move people and heavy freight — both of which are vital for sustainable economic growth. Even better, trains can improve a country's carbon impact by reducing transit by more wasteful cars and trucks. High-speed trains also run on electricity, not diesel or other carbon fuels, and can be powered by renewable sources of energy. Last year, Vietnam announced its intention to build a high-speed line connecting Hanoi and Ho Chi Minh City by 2035. That project, part of a larger upgrade of Vietnam's north-south connections, would cost an estimated $67.34 billion. Parts of the U.S. could also see new high-speed rail access in years to come. There are at least five railways suggested today, and with a growing number of international projects in the works, one of these could be next. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
