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After drone attack, several French soldiers are wounded and one officer is killed in Iraq
French President Emmanuel Macron condemned on Friday an attack that left one French officer dead and?wounded a number of soldiers in?Erbil. The French army announced on Thursday that six French soldiers who were 'providing counter-terrorism training' in the area had been injured in a drone strike, only hours after another Italian base in the same region was targeted. France has hundreds in Erbil as part of an international coalition fighting?Islamic State militants. In a tweet, Macron stated that Chief Warrant Officer 'Arnaud?Frion "died" for France and that several of our soldiers were injured in the attack. He said: "This attack on?our forces that have been fighting Daesh since 2015, is unacceptable." The presence of French soldiers in Iraq falls'strictly under the umbrella of the fight against terror. The war in Iran does not 'justify' such attacks. The drone's origin was not immediately apparent. According to two Iraqi sources who are close to the group and three Iraqi sources, the Shi'ite militants of Iraq have increased the number of missile and drone attacks against U.S. interests within Iraq over the past three to four days. In a press release, Erbil Governor Omed Koshnaw stated that the drone strike was carried out in the Makhmour region. The Italian Defence Ministry said that the overnight airstrike on an Italian military base was deliberate. It targeted a facility hosting NATO personnel. France has deployed about a dozen navy vessels, including an aircraft carrier strike group to the Mediterranean Sea, Red Sea, and possibly the Strait of Hormuz, as part of its defensive support for ally countries threatened by the Middle East conflict. Leaders of Iran, Israel, and the United States have all voiced their defiance, and pledged to continue fighting as the Middle East war approaches the two-week mark this Friday. The conflict has killed thousands, disrupted the lives of millions, and shaken financial markets. (Reporting and editing by John Irish and Ahmed Rasheed; Mrinmay dey and Michael Perry).
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Asian stocks fall as Iran's war on oil keeps it near $100 and denies rate-cut betting
Asian stocks fell on Friday as oil prices rose due to the fading hopes for a solution to the U.S.-Israel war against Iran. This cast a shadow on global markets, and sparked inflation fears. The?U.S. The dollar has been the currency of choice during the turmoil, and most other currencies have come under pressure. The dollar is up 2% in the last two weeks since the outbreak of the war at the end February. Oil prices remain close to the $100 per barrel mark, although they have eased slightly in early Friday trading after U.S. granted a license to countries for a period of 30 days to purchase Russian oil and petroleum product currently stranded on sea. Brent futures was last at $99.85 per barrel while West Texas Intermediate crude stood at $95.05 per barrel. MSCI's broadest Asia-Pacific index eased by 0.5% in Asia. It is on track to decline 1.5% for the week. Japan's Nikkei index fell by 1.3%. South Korean tech stocks fell nearly 2%, and Taiwanese equities dropped 1%. Investors are preparing for a long conflict and higher oil costs as Iran's new Supreme Leader,?Mojtaba Khmenei, vows to close the Strait of Hormuz. Markets have re-priced what they expect from central bankers this year due to the threat of inflation. Traders now anticipate just 20 basis points compared to 50 basis points last month. Prashant Nnewnaha, senior rates analyst at TD Securities said that the markets were positioned to cut the Fed this year but now the U.S.'s incursion into Iran has taken away the ability to justify Fed reductions. The markets are recalibrating themselves for a higher rate. The selling of global stocks and bonds is not showing signs of abating. U.S. stock prices fell dramatically overnight, and two-year Treasury yields, typically moving in line with Fed expectations of interest rates, reached a six-month-high on Thursday. Vasu Menon is the managing director for investment strategy at OCBC Singapore. He said that investors should prepare themselves for further volatility in the short term and possible further decline. SWIRL INFLATION WORRIES Jose Torres said that the rising oil price has a negative impact on corporate margins and inflation expectations. He also noted that rate-cutting prospects, yields, and future rate cuts are all causing market volatility. Participants have few options to hide. In fact, the waning optimism regarding Fed rate cuts amid increasing cost pressures has weighed on traditional safe-havens like silver, gold and government debt. After reaching its highest level since the 22nd of August on Thursday, the yield for two-year notes eased 3 basis points to 3.730%. Since the start of the war, the yield has increased by?35 basis points. This month, the yield on 30-year bonds has increased by 24 basis points. Investors will?focus on a series of policy meetings that are scheduled for next week. The Fed, Bank of Japan and European Central Bank, as well as the Bank of England, all have to meet. Most of these meetings are expected to maintain rates. Reserve Bank of Australia rates are widely expected to increase next week. The euro was last priced at $1.1527. It is still on track to experience a weekly decline of almost 1%. The dollar index stood at 99.599. This was a 0.8% increase for the week. The yen has firmed up a little to 159.13 dollars, hovering just below the 160 mark. However, the talk of possible intervention is 'fairly muted. Analysts say the bar is higher for Tokyo to intervene due to the recent oil price shock. Tony Sycamore is a market analyst for IG. It makes no sense to spend precious intervention ammunition - verbal or physically - to try to defend the 160ish this time. The price of gold was 0.7% higher on Friday at $5,114 an ounce but is expected to drop 1% for the entire week. (Reporting from Ankur Banerjee, Singapore; Editing and proofreading by Sam Holmes).
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Australian shares fall on inflation fears, Northern Star falls on output warning
Australian shares dropped on Friday, as rising oil prices tied to the Middle East conflict fueled inflation fears. Meanwhile, gold miner Northern Star fell after announcing difficulties in achieving its annual production forecast. By 2333 GMT, the?S&P/ASX 200 was?down _0.3%? at 8,611.20. The benchmark index has lost 6.5% in the last two weeks, since the Middle East War began. The oil price rose on Thursday, reaching its highest level in almost four years. This was due to Iran's increased attacks on oil and transportation facilities throughout the Middle East. Markets projected a 78% probability of an increase at the Reserve Bank of Australia meeting on 17 March, up from 20%. Northern Star Resources plummeted as much as 16.6%. It is on course for its worst session since late March 2020 after the company announced operational setbacks in one of Australia's biggest open-pit gold mining operations, Kalgoorlie Consolidated Mines. Lower gold prices weighed down on the Australian gold peers as well as the broader mining index, which both fell by 4.3% and 1.8% respectively. The dollar strengthened and bets that the U.S. Fed would cut rates eased. The conflict and Northern Star's fall wiped out gold sub-index gains for the year, after it had more than doubled on a bullion price rally in 2025. Financials increased 0.5%, which helped limit the overall loss, but if momentum continues, it is likely that a third straight week of?loss will follow. All four "Big Four' lenders gained between 0.3% to 0.7%. Energy stocks rose by 1.1% due to higher oil prices. Karoon Energy, however, lost?1.8% when it announced that Brazil had imposed a 12 percent tax on oil exports. Karoon has a Brazilian asset, the Bauna Project. The benchmark S&P/NZX50 index in New Zealand fell 0.5% to 13,133.31.
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Global EV sales fell again in February
Benchmark Mineral Intelligence's (BMI) data showed that global EV registrations dropped 11% in February. This was largely due to China's biggest?sales?drop since early 2020 when the COVID-19 epidemic began. China, which has been slackening its policies to encourage the purchase of electric vehicles, has stopped funding auto trade-ins. A tax exemption on EVs in China expired at the end last year. BMI reported that China,?the largest EV market in the world, saw a 32% drop in battery-electric car registrations and?plug in hybrid vehicle sales in February, a proxy measure of sales. This dropped to less than 500,000 cars. This is consistent with the?34% decline in total car sales recorded in August by?the China Association of Automobile Manufacturers. Charles Lester, BMI Data Manager, said that consumers are very price sensitive. In February, worldwide registrations dropped for the second consecutive month to just under one million vehicles sold. This is their lowest level since 2024. The North American EV market shrank by 35%, to less than 90,000 units, for a fifth consecutive month, after an EV credit scheme was ended in the United States, last September, and President Donald Trump's administration proposed to further reduce Co2 emissions standards. Trump's policies, coupled with a cooling of global demand for electric cars, have forced carmakers that are most exposed to the U.S. to write down over $70 billion. Europe has also retreated from its emission targets. In February, EV sales on the continent increased by 21%. This is a growth rate that has not slowed down despite the slower pace of most of last year. The number of EVs registered in other parts of the world increased by 78% to more than 180,000 vehicles. Chinese automakers have continued to expand in Asia, Australia and Europe while fighting off fierce domestic competition. (Reporting and editing by Matt Scuffham, Alessandro Parodi)
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Canada will boost Arctic defenses and says it cannot rely on other countries
Mark Carney, Canada's Prime Minister, unveiled on Thursday a C$35 billion plan ($25.7 billion), to "boost" Canada's defences in the vast Arctic region. The country is trying to reduce its dependence on the United States. Canada has relied on U.S. assistance to monitor the Canadian Arctic for many years. The Canadian Arctic covers an area of 4.4 million sq km (1,7 million sq mi) - more than India's total land area - and it is virtually uninhabited. Trump's tariffs, and his musings on annexing Canada, have caused tensions. "We won't depend on one nation anymore, but instead, we will build a stronger and more independent country." Carney stated that Canada will take full responsibility for defending its Arctic sovereignty with this new plan. Canada was under constant pressure from the United States to increase its defense spending. In June last year it vowed to do so. The country has promised to reach NATO's 2% target for military spending five years earlier than originally planned. Carney stated in January that the United States, along with other major nations, were undermining the?rules based order' that Canada had long enjoyed. He said that "the assumptions" that have shaped Canadian security and defense for decades are being re-examined. Carney, in a speech delivered in Yellowknife (the capital of the Northwest Territories, and the home to Canada's Arctic Military Command), said that climate change was causing the Arctic to warm three times faster than global average. The plan outlined how funding previously announced for the Arctic would be spent. Ottawa announced in 2022 a C$38.6 Billion plan to modernize Canada's defenses, and the North American Aerospace Defense Command it operates with the United States. Canada has four basic?Arctic Airfields, which can each accommodate six fighters. Around 2,000 soldiers are scattered around the region. Carney's plan includes a C$32 billion investment to expand military airfields and build four operational hubs. Two commercial airports would be upgraded and two roads proposed from the Arctic to Canada's south regions would be expedited. Trump has shown a keen interest in the Arctic's mineral potential. In addition to comments about annexing Canada and insisting that the U.S. needed Greenland to defend itself from threats by Russian and Chinese interests. Canada's Arctic region is approximately 25% of the global Arctic. The region has a wealth of?rare minerals but it is also very cold and lacks infrastructure, making mining operations complex and expensive. Carney will fly to Norway's north later on Thursday to observe NATO's biennial drills. (1 Canadian dollar = 1.3620 Canadian Dollars) (Reporting and writing by Maria Cheng, Editing by Caroline Stauffer & Edmund Klamann).
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Venezuela signss deal with Repsol to produce gas
Venezuela and the Spanish energy group Repsol signed "strategic agreement" on Thursday, according to a government statement. Delcy Rodriquez, the acting president of Venezuela, said on state television that the agreement would allow gas production to be carried out at Cardon?IV. This is a joint venture 50-50 between?Repsol, and Italy's Eni. She said that the agreement would allow exports to expand. Rodriguez stated, "I'm very happy that this is being done with two European companies that have stayed in Venezuela. They believe in Venezuela and didn't turn their backs to our people." Venezuela's government has stated that it is "committed" to negotiating with international investors for oil and gas. After the 'United States' captured President Nicolas Maduro, in?January it eased sanctions against Venezuelan energy sector by issuing general licenses that enables global energy companies to run?oil-and-gas projects in Venezuela, the OPEC nation. Venezuela has a dilapidated infrastructure, despite having 'one of the largest oil reserves in the world. (Reporting and Writing by Daina-Beth Solomon; Editing Brendan O'Boyle).
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Canada will boost Arctic defenses and says it cannot rely on other countries
Mark Carney, the Prime Minister of Canada, unveiled on Thursday a C$35 Billion ($25.7 Billion) plan to 'boost Canada’s defenses' in the vast Arctic region as the country tries to reduce?its?reliance on the United States. Canada has relied on U.S. assistance to monitor the Canadian Arctic for many years. The Canadian Arctic covers an area of 4.4 million sq km (1,7 million sq mi) of land and water - more than India and almost entirely uninhabited. Trump's tariffs, and his musings on annexing Canada, have caused tensions. "We won't depend on one nation anymore, but instead, we will build a stronger and more independent country." Carney stated that Canada will take full responsibility to defend its Arctic sovereignty with this new plan. Canada was under constant pressure to increase its defense spending by the United States, even before Trump returned to the White House in 2017. Last June, Canada vowed to increase funding for the military. It has promised to reach NATO's 2% target for military spending five years sooner than expected. Carney stated in January that the United States and other large nations were undermining the traditional order based on rules, which had long been beneficial to Canada. He said that "the assumptions?that have shaped Canadian defense?and security for decades are being upended." Carney, in a speech delivered in Yellowknife (the capital of the Northwest Territories, and the home of Canada's Arctic Military Command), said that climate change was causing the Arctic to warm three times faster than global average. The amount of new money in the plan was not made clear. Ottawa announced in 2022 a plan worth?C$38.6billion to modernize Canada's defenses, and the North American Aerospace Defense Command it operates jointly with the United States. Canada has four Arctic airfields, each of which can house six fighters. Around 2,000 soldiers are also scattered around the area. Carney's plan includes investing C$32billion to expand military airfields and build four operational hubs. Two commercial airports would be upgraded and two roads proposed from Canada's northern regions to the southern ones would be accelerated. Trump has shown a keen interest in the Arctic, and its mineral potential. He has also 'commented about annexing Canada' and 'insisted that the U.S. need Greenland in order to defend itself against Russian and Chinese interests. Canada's Arctic region is approximately 25% of global Arctic. The region, which is rich in rare mineral deposits, has very little infrastructure, making mining extremely expensive and complex. Carney will fly to Norway's north later on Thursday to observe NATO's biennial drills. (1 Canadian dollar = 1.3620 Canadian Dollars) (Reporting and writing by Maria Cheng, Editing by Caroline Stauffer & Edmund Klamann).
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Chile and the US are looking to collaborate on rare earths, critical minerals
Chile and the U.S. signed a statement on Thursday to start?discussions about rare earths and critical minerals. It was added that the first meeting would take place in 'the next two weeks. The areas of possible coordination include public-private financing of mining projects, management of scrap minerals recycling and exploration of new projects that can help boost mineral supplies in both countries. The Trump administration is pushing to reduce the reliance on China in a number of key minerals that are used for electric vehicles, semiconductors defense systems and consumer electronics. Chile is the second largest lithium producer in the world, but it depends on imports for other minerals. Christopher Landau, U.S. deputy secretary of state, told journalists that the United States and Chile can work together to improve?the supply chain of these minerals. Landau continued, "We will discuss ways we can work together." Landau, formerly the U.S. Ambassador to Mexico, signed with Chilean Foreign Minister Francisco Perez Mackenna at a Santiago ceremony presided over by Kast. Albemarle, a Charlotte-based company in North Carolina, has been producing?lithium for over 50 years in the northern Atacama area of the country. It is the world's leading producer of this?battery material. Albemarle did not comment immediately on the partnership between?the two countries. EnergyX, a Puerto Rico-based startup in the lithium technology sector backed by General Motors aims to construct a $1.1billion lithium facility in Chile. The facility is expected to be operational in 2028, and will eventually produce 50,000?metric tons of lithium per year. Teague Egan of EnergyX, the CEO of the company, said that signing a framework agreement on Kast's very first day as president is a great first step. He met Kast last Saturday at the "Shield of the Americas Summit" in Miami, hosted by U.S. President Donald Trump. (Reporting and editing by Sarah Morland; Additional reporting in Houston by Ernest Scheyder; Alistair Bell, Daina Beth Solon, and Sarah Morland)
Oil prices drop after US grants license to countries to purchase Russian oil that has been stranded on sea for 30 Days
The price of oil dropped Friday morning, after the U.S. granted a license to countries for a period of 30 days to purchase Russian oil as well as?petroleum stranded in the sea. This eased supply concerns.
Brent futures fell 71 cents or 0.71% to $99.75 per barrel at 0123 GMT, while U.S. West Texas Intermediate crude (WTI), was?down 88 cts or 0.92% to $94.85.
The license was granted in what Treasury Sec. Scott Bessent described as a move to stabilize global energy markets that were roiled by war in Iran.
The license will not resolve the fundamental problem. Yang An, an analyst at Haitong Futures, said that the most important thing was the restoration of navigation through the Strait of Hormuz.
The announcement about Russian oil comes a day after the U.S. Energy Department announced that the U.S. will release 172,000,000 barrels of oil out of its Strategic Petroleum Reserve to 'tame the sky-high oil prices following the war in Iran.
This plan was coordinated by the International Energy Agency (IEA), which?agreed? to release 400 million barrels from strategic oil stockpiles. contribution.
In a note, IG analyst Tony Sycamore stated that the IEA'release' was followed by a dangerous reescalation in Middle East risks.
The benchmark prices both rose more than 9% Thursday, and reached their highest level since August 2022.
Iran's new Supreme Leader Mojtaba Khmenei has said that Iran will continue to fight and close the Strait of Hormuz as leverage against Israel and the United States.
Iraqi officials reported that two fuel?tankers were hit by Iranian boats laden with explosives in Iraqi waters on Thursday. Iraqi officials told state-run media that oil port operations in the country have been halted.
Bloomberg News reported on Thursday that Oman had moved all its vessels from the main oil export terminal in Mina Al?Fahal outside of the Strait of Hormuz as a precautionary measure.
Other measures are also being taken to reduce the risks.
U.S. Treasury secretary Scott Bessent said in an interview with Sky News that the U.S. Navy would, perhaps along with an international alliance, escort ships through the Strait of Hormuz if it was militarily feasible.
Saudi Arabia reportedly pays a premium for tankers to be rerouted?towards the Red Sea using its East-West pipeline to transport oil on global markets.
In his note, IG's Sycamore stated that Iran allows one or two tankers a week to pass, mainly towards China. This keeps China on their side and the cash flowing. (Reporting and editing by Lewis Jackson and Sam Li)
(source: Reuters)