Latest news with #supplydisruption
Wall Street Journal
11 hours ago
- Business
- Wall Street Journal
Oil Rises Amid Ongoing Middle East Tensions
0011 GMT — Oil rises in the early Asian session amid ongoing Middle East tensions that could lead to supply disruptions. Israel struck Iran's state media buildings in Tehran, while President Trump called for evacuation of the Iranian capital. The attacks came even as the WSJ reported Iran has been urgently signaling that it seeks an end to hostilities and a resumption of talks over its nuclear programs. The nature of Israel and Iran's attacks on each other suggests risks to the oil market have escalated in this latest phase of the Middle East conflict, ANZ Research analysts say in a research report. Front-month WTI crude oil futures are 1.9% higher at $73.14/bbl; front-month Brent crude oil futures are 1.6% higher at $74.41/bbl. (
Arab News
a day ago
- Business
- Arab News
Pakistan says fuel stocks sufficient, vows vigilance as Mideast tensions rattle markets
KARACHI: Pakistan currently holds adequate stocks of petroleum products and faces no immediate risk of supply disruption, the finance ministry said on Monday, while warning that continued vigilance was needed as Middle East tensions pushed oil markets into fresh volatility. The statement came after the inaugural meeting of a committee formed by Prime Minister Shehbaz Sharif last week to monitor petroleum pricing and supply in response to an ongoing military confrontation between Israel and Iran. Oil markets have been volatile amid the escalation, with Brent crude prices jumping about 7 percent last Friday to near $75 per barrel, but edging down on Monday, as renewed military strikes by both nations over the weekend left oil production and export facilities unaffected. Concern is focused on potential disruptions in the Strait of Hormuz, through which roughly one‑fifth of global oil transits, and weak supply growth from Iran, which produces about 3.3 million barrels per day. Analysts caution any sustained spike could drive up global freight rates, insurance premiums and inflation, particularly in energy‑importing countries like Pakistan. 'The committee expressed satisfaction that Pakistan currently holds adequate stocks of petroleum products and there is no immediate risk of supply disruption. Nonetheless, members emphasized the need for continued vigilance given the rapidly changing regional context,' the finance ministry said after the first meeting of the committee, chaired by Finance Minister Muhammad Aurangzeb. The ministry added that to ensure timely response and effective coordination, a working group would monitor developments on a daily basis, and the full committee would meet weekly to review the situation and submit recommendations to the prime minister. 'The Government of Pakistan remains fully committed to maintaining energy security, stabilizing markets, and protecting the national interest during this critical time,' the statement added. The committee has been entrusted with monitoring the forward/futures prices of petroleum products and the predictability of supply chains, determining the foreign reserve implications of price volatility in the short and medium term, suggesting a plan, if and when required, to ensure there were no supply disruptions and the market was well supplied, and carrying out a detailed analysis of the fiscal impact in the event of a protracted conflict. Pakistan relies heavily on imported oil, and any sustained spike in prices could widen its current account deficit and push inflation higher at a time when the country is struggling with low foreign reserves and slow growth. The Israel-Iran conflict started on Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict. Over 220, mostly civilians have been killed in Iran so far, while Israel has reported 23 deaths in retaliatory strikes by Tehran. Pakistan and Iran share a 909 kilometer (565 mile) long international boundary that separates Iran's southeastern Sistan-Baluchestan province from Pakistan's southwestern Balochistan province. 'Israel-Iran conflict presents complex challenges for Pakistan as rising oil prices may increase import costs and inflation, influencing monetary policy and growth, while disruptions to key routes like the Strait of Hormuz can affect energy supplies and critical projects,' Khaqan Najeeb, an economist and former finance ministry adviser, told Arab News last week. 'It can potentially affect consumer purchasing power and production costs ... Possible disruptions to shipping routes and higher freight charges might result in delays to imports and exports, thereby exerting additional pressure on Pakistan's external sector.'
Yahoo
5 days ago
- Business
- Yahoo
Oil prices ease but hover near two-month highs as Middle East tensions escalate
Oil prices fell on Thursday morning, easing back after rallying but hovered around their highest point in two months, as investors eyed escalating tensions in the Middle East and a potential disruption to supply. Brent crude futures (BZ=F) fell 0.9% to $68.31 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) declined 0.9% at $67.56 a barrel. US president Donald Trump said on Wednesday that some of US personnel were being moved out of the Middle East because "it could be a dangerous place to be". This came following reports earlier in the day that the US was preparing a partial evacuation of its embassy in Baghdad, Iraq. CBS News reported that US officials had been told Israel was ready to launch an operation into Iran and that the US anticipated Iran could retaliate on certain American sites in Iraq. Read more: FTSE 100 LIVE: Stocks slump as UK GDP contracts in blow to Rachel Reeves Trump said in an interview with the New York Post, released earlier on Wednesday, that he was "less confident" about getting Iran to agree to halt its nuclear programme. In a press briefing on Wednesday, Iran's defence minister Aziz Nasirzadeh said: "Some officials on the other side threaten conflict if negotiations don't come to fruition. If a conflict is imposed on us ... all US bases are within our reach and we will boldly target them in host countries." Matt Britzman, senior equity analyst at Hargreaves Lansdown, said that oil prices remain near a two-month high "driven by rising US-Iran tensions and fears of supply disruptions. At the same time, optimism about energy demand grew after the US and China reached a trade framework, and US crude stockpiles fell more than expected, signalling strong consumption." Gold prices jumped on Thursday morning, as Middle East tensions buoyed demand for the safe-haven asset. Gold futures (GC=F) surged nearly 1% to $3,376 per ounce at the time of writing, while the spot gold price advanced 0.1% to $3,359.49 per ounce. The precious metal is considered to be a safe haven asset, in acting as a hedge amid political and economic uncertainty. Britzman said: "Gold was another winner, with its safe-haven appeal gaining traction amid rising Middle East tensions and softer US inflation data, which gave a modest boost to expectations for rate cuts." Read more: UK economy shrinks by 0.3% in April Data released on Wednesday showed that the US consumer prices index (CPI) rose by 0.1% month-on-month, which was below April's 0.2% rise and lower than economists' estimates of a 0.2% monthly gain in prices. On an annual basis, CPI rose 2.4% in May, a slight uptick from April's 2.3% gain, which marked the lowest yearly increase since February 2021. Investors were also monitoring the latest trade developments, after Trump said in a social media post on Wednesday afternoon that Washington's deal with China is "DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME". The pound rose slightly against the dollar (GBPUSD=X) on Thursday morning, up 0.2% to $1,3571, despite a bigger than expected contraction in UK economic growth. The Office for National Statistics (ONS) said that the UK's gross domestic product (GDP) — the standard measure of an economy's value — shrank by 0.3% in April, which was more than the 0.1% contraction expected by economists. The fall followed growth of 0.2% in March and a 0.7% rise in GDP in the first quarter. This latest economic data comes a day after chancellor Rachel Reeves delivered the UK spending review, sharing details of governmental department budgets for the next few years. Key announcements included a £29bn per year increase in funding for the NHS, while the government's defence budget is set to increase from 2.3% to 2.6% of the country's gross domestic product (GDP) from 2027. Reeves also shared details of a £39bn boost to funding for affordable housing and £15.6bn for transport projects in England's largest city regions outside of London. Stocks: Create your watchlist and portfolio Danni Hewson, head of financial analysis at AJ Bell, said: "It's hard not to look at today's headline fall in economic growth as anything other than inevitable. Company after company had warned the chancellor that the decisions taken during last year's budget would impact business growth and create huge uncertainty about existing staffing levels." "Rachel Reeves has said she is determined to deliver growth, and her spending plans have been given a cautious welcome by business groups up and down the country — but the caution speaks volumes," she said. "Can the government's trade policies and spending plans deliver the promised growth or was the energy demonstrated by the UK economy at the start of the year merely a tease?" In other currency moves, the pound fell 0.4% against the euro (GBPEUR=X), trading at €1.1743 at the time of writing. More broadly, the the FTSE 100 (^FTSE) was little changed, trading at 8,863 points at the time writing. For more details, on broader market movements check our live coverage here. Read more: Bitcoin price dips as markets cool after US-China tariff talks What you need to know about UK's private stock market Pisces UK house prices remain flat as buyer demand and sales steadyError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
19-05-2025
- Business
- Wall Street Journal
Oil Edges Higher, Supported by Supply Disruption Worries
0005 GMT — Oil edges higher, supported by prospects of supply disruptions. Israel's military began activating troops in Gaza on Sunday as part of a larger ground operation, the WSJ reported. The move follows earlier news that the Israeli military had begun launching strikes in the Gaza Strip and had bombed Houthi controlled ports of Yemen. Oil has found some support from the reports, ANZ Research analysts say in a research report. The escalation has boosted fears of a broader regional conflict, they add. Front-month WTI crude oil futures are up 0.2% at $62.64/bbl; front-month Brent crude oil futures are 0.1% higher at $65.47/bbl. (
