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US Energy chief defends waiver of Russian oil sanctions and blames higher gas prices on fear
Trump administration officials on Monday defended the decision to temporarily lift sanctions against Russian oil and predicted a dramatic 'increase' in gasoline prices due to the Iran War would only last a few weeks. On multiple TV talk shows Energy Secretary Chris Wright, and U.S. The Ambassador to the United Nations Mike Waltz stated that a waiver granted last week to Indian oil purchases would ease pressure on the global markets. Waltz told NBC's 'Meet the Press' that the 30-day pause would allow the oil barrels sitting on ships, millions of them, to be sent to refineries in India. Wright said on CNN's "State of the Union," that the waiver could help "tame this fear of a shortage of oil and tame?the price spikings and the worries we see in the market." The war is now in its second and final week, with no end in sight. Americans are struggling to pay higher gas prices, complicating the U.S. economic situation, which lost 92,000 jobs in February. According to AAA, as of Friday the average national price for regular gas was $3.32 per gallon. This is up 11% since the previous week, and is the highest level since September 2024. Diesel, at $4.33 was up 15% in a week, and has now reached its highest price since November 2023. Wright stated on "Fox News Sunday," "We think this is a modest price to pay for a world in which energy prices return to what they were." Wright said that there is no shortage in oil or gas. He claimed that price increases were based on the "fear and perceived" that the Iran operation would be long-lasting. Wright said that it would not be the case, echoing?Donald Trump who predicted that the war will last only weeks and not months. In an interview with CNN on Thursday, Trump predicted that gas prices would "drop rapidly" once the war was over. Senator John Kennedy, a Louisiana Republican senator, has criticized energy speculation. Kennedy stated?on Fox News Sunday that the oil prices are higher because of a group of oil traders who bid up the price in their Gucci loafers and caramel Frappuccinos. A persistent rise in gasoline prices, say political analysts, could harm Republicans during the November'midterm elections. A recent /Ipsos survey found that the majority of respondents disagreed with Trump's claim that the economy is "booming."
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FT reports that KKR is looking to sell a data center cooling company for a multi-billion dollar price.
The Financial Times reported that U.S. 'private equity' firm KKR was working with 'advisers' on a sale of data -center company CoolIT Systems at a price which could exceed $3 billion. The report stated that a potential sale of CoolIT was still in its preliminary stages and that there were no guarantees that a transaction would occur. It also noted that several buyers had been identified as potential bidders. KKR and CoolIT Systems?did not immediately respond?to requests for comments outside of regular business hours. Could not verify the report immediately. The power required to run high-powered AI systems and cloud servers that crunch data is enormous. This generates a lot of heat, which traditional air cooling systems can't cool properly. Global demand for data centers is causing a surge of deals in the industry, as companies rush to increase capacity and meet the surge in cooling and power needs. According to the website, CoolIT is a specialist in developing, manufacturing and designing 'liquid cooling technologies' for AI and computing systems. KKR acquired it in 2023.
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Japan legislator: Tokyo has told the national oil reserve to prepare for release in response to Iran crisis
On Sunday, a senior Japanese member of parliament said that the government had 'instructed' a storage facility for the national oil reserves to prepare for a potential release of crude as the Iran Crisis?has reduced supply from the Middle East. Around 95% of Japan's crude oil is sourced from the Middle East, with approximately 70% of that being shipped through Strait of Hormuz. This has effectively been closed since U.S., Israeli and Iranian attacks on Iran. Akira Nagatsuma is a member of Centrist Reform Alliance, an opposition party. He told Akira Nagatsuma that a?official with the Japan Organization for Metals and Energy Security at the Shibushi National Oil?Storage Base said they had received the directive on Friday from the Agency for Natural Resources and Energy. Nagatsuma stated that details such as the timing for the release are still unclear. It wasn't immediately clear if other storage bases had received the same instructions. A spokesman for ANRE (under the Ministry of Economy Trade and Industry) declined to comment. Shibushi was not available to comment immediately, and JOGMEC couldn't be reached after office hours. Shibushi, in southern Japan, is where Japan's strategic oil reserves are located. Japan has emergency oil reserves that are equivalent to 254 days of domestic consumption. These include government stockpiles and private sector inventories as well as joint reserves with oil producing countries. Tokyo's last oil withdrawal from its reserves was in 2022, as part of a coordinated release led by the International Energy Agency (IEA), following?Russian invasion of Ukraine. Ryosei Acazawa, the Industry Minister, said in an early statement last week that the Ministry would not be releasing oil reserves. However, it would closely monitor the crude oil supply, working with the IEA. Kyodo News Agency reported on Friday that the Japanese government may use a part of its oil reserves to combat the Iran crisis, which has disrupted energy supplies worldwide. This could be done in coordination with other nations or on its own.
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Saudi index continues to rise as Iran approves a pause in Gulf attacks
The majority of 'Gulf' stock markets were up in the early trade on Sunday. The Saudi index was up for a fifth consecutive session after the?Iranian?temporary governing council agreed to stop attacks on neighboring nations, unless they originated on their own territory. Saudi Arabia told Tehran it supports a diplomatic solution to Iran's conflict with the U.S. but that continued attacks against the kingdom and its energy sector may push Riyadh into a similar response, according to sources. Saudi Arabia's benchmark.TASI index rose 2%. All of its constituents posted?gains led by energy and material stocks. Brent oil prices surged on Friday, with Brent trading above $90 per barrel as a result of the continuing disruptions in global oil supply due to the U.S./Israeli war against Iran. Saudi Aramco grew by 4%, while Yanbu National Petrochemical jumped by 10%. The Qatari benchmark index.QSI rose by 0.1%. Mesaieed Petrochemical Holding gained 5.3%, and Ooredoo?added 2.1%. The.MSX30 index in Muscat rose?1.4%, while the.BAX index in Bahrain grew?0.2%. Kuwait's index,.BKP, fell 0.5% with the majority of stocks falling. Kuwait Petroleum Corporation has cut oil production and declared force majeure on Saturday, as the U.S. Iran war continues to block shipments from the Middle East. (Reporting and editing by Bernadette B. Baum, Helen Popper, and Md. Hussain from Bengaluru)
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Trump says he doesn't need Britain's help to win the Iran war
Donald Trump stated on Saturday that Britain was "seriously considering" sending two aircraft carriers to the Middle East. He added, however, that the United States would not be sending any. The United States does not need these aircraft carriers to win the war against Iran in the latest conflict between military allies. Trump has repeatedly criticized British Prime Minister Keir starmer, suggesting that he "ruined" the historically close relationship between the two countries after London refused to allow the U.S. The initial use of British base to attack Iran was criticised by Trump. Trump wrote on?Truth Social that he would "remember" the British lack of support during the conflict?with Iran. Trump said, "The United Kingdom is seriously considering sending two aircraft carriers into the Middle East, perhaps the Greatest Ally of all." We don't have to worry about them anymore, but we'll remember. We don't want people who join Wars after they've already won! The British Ministry of Defence announced on Saturday that it was preparing Prince of Wales aircraft carrier for a possible deployment. A British official confirmed that no decision had been made about the deployment of the aircraft carrier in the Middle East. Starmer has defended Starmer's decision to not allow U.S. forces to use British bases in order support initial strikes on Iran, saying he needed to be satisfied that any military action was legal and well planned. Starmer has defended his decision not to allow?U.S. forces to use British base to support initial attacks on Iran. He later granted U.S. troops permission to use British base for defensive strikes against what he called?Iranian?missiles in storage or?launchers. Starmer criticised Trump's desire to purchase Greenland earlier this year and called his remarks that European troops avoided the frontline of combat in Afghanistan "truly appalling."
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Security sources claim that Katyusha missiles are being fired at the US Embassy in Baghdad.
Security sources and witnesses reported that sirens were heard as Katyusha missiles struck the U.S. Embassy in Baghdad. It was not immediately clear if the rockets had caused any casualties or damage. This was the first attack on the embassy in over two years. The last recorded attack?was late 2023 when seven mortar rounds fell in the compound amid a wave attacks by Iran-aligned militas against U.S. assets in Iraq and Syria because Washington supported Israel's war in Gaza against Hamas. Around 9 pm, explosions were heard in the central Baghdad area near the embassy. Witnesses said that sirens sounded at 1800 GMT, warning people to seek cover. According to a senior Iraqi official, the C-RAM defense system was responsible for bringing down one of the missiles. No rockets landed in the embassy. The official claimed that there were no American injuries. The attack shows that Iran-aligned Iraqi militas, who had vowed to retaliate against the death of Iran's supreme leader -- have now widened their target beyond U.S. Military bases in Iraqi Kurdistan as well as U.S. Energy interests. They have also targeted the U.S. embassy. Iraqi Prime Minister Mohammed Shia al-Sudani has ordered his security forces to find those responsible for the projectiles. He called them "rogue groups" that operate outside of the law and do not represent the Iraqi public, according to a press release from his office. Reporting by Ahmed Rasheed. Editing by Timothy Heritage & Diane Craft.
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Kuwait reduces oil production to prevent tensions with Iran, KPC reports
Kuwait Petroleum Corporation announced on Saturday that the country has reduced crude oil production as a precautionary measure due to the ongoing attacks from 'Iran' against the country, and the closure of the Strait of Hormuz. These cuts will cause another disruption to the global energy market due to the U.S./Israeli war against?Iran. Oil and gas storage facilities in the Middle East Gulf are rapidly filling up. The Iraqi oil fields have already reduced production, and Qatar has declared force majeure for its massive volumes of gas exports. Next is likely the United Arab Emirates. Kuwait's reducing its output was in response to "Iranian threats against safe passage of vessels through the Strait of Hormuz", and as part of "risk management and continuity of business strategy," KPC stated in a press release. The national oil company didn't say how much it reduced its output. Kuwait produced approximately 2.6 million barrels of crude oil per day in February. KPC stated that the?adjustment is strictly precautionary, and will be reviewed as conditions change. It remains ready to resume production once conditions permit. The U.S. and Israeli 'war on Iran' has spilled a little beyond Iran's borders. Tehran responded by attacking Israel and Gulf Arab states - hosting U.S. military bases. And - Israel launched new attacks - in Lebanon, after Iran-aligned Hezbollah fired over the border.
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Four people are killed and more than a dozen injured by tornadoes in rural Michigan
Local authorities reported that tornadoes and storms in southern Michigan killed or injured at least 'four' people on Friday. Multiple homes were destroyed and a large number of residents lost power. Videos on social media, claiming to come from Three Rivers and Union City, showed massive whirlwinds that tore roofs off of buildings and lifted debris into the sky. Local media footage showed cars and buildings smashed, as well as poles, trees, and road signs that had been blown. The sheriff's department of Branch County reported three fatalities and 12 injuries in the area where Union City is situated. According to local authorities, one person died and several others were injured in?Cass County. According to a Cass County website, "multiple large structures including homes and pole barns sustained damage ranging from structural impacts to total destruction." Local officials reported that hundreds of people were affected by power outages. We have many utility poles that are down, transformers that are damaged, and long power lines lying on the ground. According to a post on Union City's official Facebook page, the?northside of Union Lake sustained most of the damage. Two miles of power lines were brought down there alone. Michigan Governor Gretchen Whitmer announced that she had activated a State Emergency Operations Center? to monitor the situation. The state is prepared to meet any requests for resources that may arise. Yet, we haven't received any. Clayton Cummins is a spokesperson from Michigan emergency services and the police. He said that it sounds 'like' local response has been able to deal with 'what's a been a very destructive afternoon and evening in Southwest Michigan. (Reporting and editing by Donna Bryson, Tom Hogue, and Maria Tsvetkova)
Stocks under pressure as oil prices soar in Asia
As the Middle East conflict looked to be extending into the next few weeks, investors rushed to bonds and gold to protect themselves. This was just after the markets were spooked by AI and banking concerns.
Brent crude oil jumped by 9%, to $79.42 per barrel. U.S. crude rose 8.6% to $72.61 a barrel. Gold increased 1.4% to $5,350 per ounce.
The United States and Israel's military strikes on Iran have not ceased, but the Arab nations responded with missile attacks across the region. They risked involving their neighbours in the conflict.
Donald Trump told the Daily Mail that the conflict could continue for another four weeks. He also posted on Twitter that the attacks would continue until U.S. goals were achieved.
The Strait of Hormuz was the focus of attention. It is where a fifth of all oil traded by sea and 20% of liquefied gas are transported. Marine tracking sites show that the vital waterway is not yet blocked. However, tankers are piled up on both sides of the strait. They may be afraid of an attack or unable to obtain insurance for the trip.
The most immediate and concrete development that has affected oil markets is the effective stoppage of traffic through Strait of Hormuz. This prevents 15 million barrels of crude oil per day (bpd), from reaching the markets,? said Jorge Leon, the head of geopolitical analyses at Rystad.
We expect oil prices to rise significantly unless de-escalation signs are quickly sent out.
A sustained spike in oil price could reignite inflationary pressures worldwide, and act as a tax for consumers and businesses that would dampen demand.
OPEC+ agreed on Sunday to a modest increase in oil production of 206,000 barrels a day for the month of April, but a large amount of this product?still needs to be transported out of the Middle East via tanker.
Alan Gelder is Wood Mackenzie's SVP for refining and chemicals, oil markets, and said that the Middle East Oil Embargo of the 1970s was the closest historical analogy. The embargo increased oil prices 300%, to $12/bbl around 1974.
This is just US$90/bbl by 2026. In today's market, where there are concerns about supply losses, it seems possible to surpass this.
Nikkei Futures fell by 1.1%, as this would be costly for Japan who imports all of its oil.
It's a big US data week
S&P futures on Wall Street fell 0.8%, while Nasdaq Futures dropped 0.9%.
The dollar fell 0.2% against the Swiss Franc, a safe haven currency.
The U.S., despite being a net exporter of energy, is still considered to be a liquid safe haven during times of crisis. This gives the dollar support and pushes the euro down by 0.3% at $1.1780.
The Japanese yen can be a safe haven, but the country imports its oil. This makes the flow of money more bi-directional. The dollar rose 0.2% to 156.31 Japanese yen while the Australian dollar gained sharply.
Bond markets saw 10-year Treasury futures rise 3 ticks. Yields had fallen below 4% for the first week since late November.
The bond market was boosted on Friday after UK mortgage lender MFS went into administration due to allegations of financial irregularities. The collapse of MFS stoked credit concerns, as well-known banks were among its lenders. MFS had borrowed 2 billion pounds ($2.69 billion).
The news hit banking stocks hard and combined with worries over AI-related stocks, Wall Street was impacted more widely.
Investors will also be faced with a torrent of U.S. economic data, including retail sales, the ISM manufacturing survey, and the vital payrolls report.
After a disappointing quarter, any weakness in the economy could undermine confidence. It would also reduce the chances of a rate cut by the Federal Reserve.
The markets currently indicate a 53% probability of a easing in June, and around 60 basis points this year. (Reporting and editing by Sam Holmes; Wayne Cole)
(source: Reuters)