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Arab Times
8 hours ago
- Business
- Arab Times
Kuwait warned to brace for $100 oil if conflict escalates
KUWAIT CITY, June 22: While the ongoing Israeli-Iranian war has led to a rise in the price of crude oil, several parties expect oil prices to reach $100 if the war escalates and the Strait of Hormuz is closed, but this possibility was ruled out by the experts that the newspaper interviewed recently. Economic expert Salah Al- Jimaz said it is in Iran's interest to continue the passage of oil tankers through the Strait of Hormuz; considering its closure will cause a huge financial loss for Iran, because its tankers pass through the Strait, especially after its oil production in the first quarter of this year reached 3.5 million barrels per day. He pointed out that it is difficult for Iran to sacrifice these revenues, particularly since the current war has cost and will continue to cost it a great deal from the State treasury, and it may suffer an economic decline for several years as a result of the war. He thinks the Iranian-Israeli war could raise oil prices to more than $100 per barrel if Israel targets strategic oil sites or Iranian refineries, or if the Strait of Hormuz is closed. 'However, realistically, Israel and Iran do not want this war to take on economic dimensions that could impact the oil commodity and its prices, because the victims will not only be Iran or Israel, but all other countries throughout the world. If Israel targets Iranian oil sites, this will be a provocation of the entire world,' he explained. He advised the Kuwaiti oil sector to expand oil storage projects near countries that primarily import Kuwaiti oil, especially since the sector has numerous previous experiences in this regard. He stated that in April, the country exported the first shipment of Kuwaiti oil to South Korea under a previous agreement between Kuwait Petroleum Corporation (KPC) and Korea National Oil Company, allowing the storage of four million barrels of Kuwaiti oil. Moreover, economic expert and former advisor to Chevron Dr. Ali Al- Hababi revealed that oil prices have been gradually rising since the beginning of the Iran-Israel war. He stressed the need to take all precautions in light of the war. He warned that attacking the Iranian Bushehr reactor located in Bandar Abbas, which is overlooking the Gulf, will lead to extremely dangerous water pollution, especially since Kuwait and the rest of the Gulf Cooperation Council (GCC) countries depend on its water. He underscored the importance of expanding Kuwaiti storage facilities, in cooperation with the private sector, to ensure adequate water and food supplies for use in such hot conditions. He called on the oil sector to take all the necessary measures if the Strait of Hormuz is closed, as such closure will halt Kuwaiti oil supplies to Asian countries. He added the Red Sea is not safe as well, indicating the regional developments will inevitably lead to a huge increase in oil prices as a result of the dependence of most countries -- including Europe -- on Gulf oil. He cited as evidence the role of Saudi Arabia in the 1973 War when King Faisal made his historic decision to ban the export of oil in the heat of that war, which led to the cessation of the use of cars in Europe and made the residents of European countries return to riding bicycles.
Arab Times
03-05-2025
- Business
- Arab Times
Kuwait unplugs watts for wealth
KUWAIT CITY, May 3: The State has intensified its efforts to combat cryptocurrencies, particularly Bitcoin, due to their negative impact on the economy, the rising number of citizens who have fallen victim to the use of this currency, and the exorbitant amount of electricity used in Bitcoin mining. Many economists, technology, and legal experts have called for the continued blocking of websites that facilitate cryptocurrency trading and for anyone found to be involved in the trade to be held accountable. They stressed the need for parental supervision over adolescents, as a study showed that 60 percent of Bitcoin traders in the country are adolescents. This is in addition to calls for the opening of State-recognized platforms for trading cryptocurrencies, similar to those in other Gulf countries. Financial expert Salah Al-Jimaz pointed out that Bitcoin mining is a complex algorithmic process whereby a customer who is proficient in mining obtains a Bitcoin or a portion of that currency. 'However, it is an extremely arduous process requiring extensive effort. Trading in Bitcoin and cryptocurrencies is available on some global exchanges, but it is criminalized in Kuwait because the Central Bank prohibits it,' he revealed. He suggested allowing licensed digital platforms in Kuwait to trade digital currencies, as they could generate billions for the country by establishing mechanisms and conditions for approving licenses for these digital platforms. He explained that the State could impose taxes on these platforms and on traders' profits to discourage some from trading in these virtual currencies in neighboring countries, especially since the Kingdom of Bahrain and the United Arab Emirates (UAE) permit trading in encrypted digital currencies. Lawyer and economic expert Salem Al-Kandari supported the government's efforts to dry up the sources of cryptocurrencies in the country, as he believes they are being exploited for money laundering operations. He said the money mafia is highly skilled in using technology, enabling them to easily launder money through cryptocurrencies. He added 'The money laundering network exploits a person with a clean reputation and transfers cryptocurrencies under his name. After depositing them in banks, paper currencies are used to purchase cryptocurrencies. The money laundering mafia also uses the internet to facilitate the sale of drugs, unlicensed firearms, stolen data and hacking tools through cryptocurrencies. Global terrorist groups can exploit the internet to raise funds in the form of donations to carry out terrorist operations. After the money laundering operations, the cleaned funds are withdrawn and converted into a base currency.' He stated that the main risk posed by cryptocurrencies is the anonymity of users by enabling untraceable transactions between parties. 'The absence of names, bank details and identity verification raises concerns and suspicions due to the lack of regulatory scrutiny,' he elaborated. Computer Science Professor at Kuwait University and Kuwait Society for Information Security Chairperson Dr. Safaa Zaman disclosed that some people confuse Bitcoin mining with money laundering. She clarified that money laundering occurs only through trading Bitcoin on platforms, but mining involves creating currency using algorithms. She stated that Kuwait criminalizes Bitcoin mining due to the excessive consumption of electricity, indicating these operations are unlicensed here and the State does not impose taxes on them. She pointed out that the impact of cryptocurrencies on the global or local economy is extremely weak, as virtual cryptocurrencies are not valued in gold like paper currencies and other reserves. 'As the first to expose the case of a developer who defrauded Kuwaiti investors of $40 million through 'Bitcoin Kuwait' and then fled, the government has started closely monitoring Bitcoin mining activity and it is working hard to prevent its trading in the country.
