Latest News
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Portugal prepares draft bill for windfall tax on energy firms
Portugal's Finance Minister Joaquim Mirando Sarmento announced on Tuesday that the government would ask parliament for approval to impose a "windfall tax" on energy companies who benefited from an increase in energy prices due to the Iran War. Portugal, Germany, Italy and Spain, as well as Austria, wrote to the European Commission in April to ask for a similar tax on a "European" level. However, Brussels let individual countries decide. Miranda Sarmento, the Portuguese Minister of Foreign Affairs, said that Portugal would "seek to achieve the highest level of coordination possible" with other countries. Miranda Sarmento, speaking to reporters in Brussels about the energy price shock that occurred after Russia invaded?Ukraine, said: "We will recalibrate, improve and, in the short term, we will present a proposed to parliament." He stated that the current situation is different from '2022 because 'overall inflationary forces are much lower. Core inflation, excluding food and energy, runs at around 2.2%. The Socialist Party introduced the mechanism 2022, and despite the fact that the centre-right government only holds a small minority of seats, it is expected to approve the proposal. (Reporting and editing by Andrei Khalip; Sergio Goncalves)
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Saudi Arabia's quarterly budget deficit balloons to $33.5 Billion, driven by spending boom
Saudi Arabia has reported a first quarter 'fiscal deficit' of 125.7 billion Riyals ($33.5 billion), which is not far off from its projected full-year figure of $44 billion. It also increased?spending in order to support the economy amid disruptions caused by the Iran War. In response to U.S. and Israeli strikes which began on 28 February, Iran has attacked Gulf states. This has damaged major energy infrastructure and disrupted shipping in the Strait of Hormuz. The Strait of Hormuz normally handles about 20% of all global oil and LNG?flows. Saudi Arabia's economic growth will slow down sharply in this year, despite higher oil prices. This is also expected to be the case for non-oil industries such as tourism. The Finance Ministry reported that total government expenditures reached 386.7 billion Riyals in the first quarter of this year, an increase of 20% compared to the same period last year. This was more than the revenues, which were 261.0 billion Riyals. * "Despite a?marked increase in the deficit in 1Q, we still expect a?smaller deficit in 2026 for the full year than in 2025," Monica Malik said, chief economist of Abu Dhabi Commercial Bank. The sharp rise in oil prices since March will offset the loss of output. * Oil revenues fell 3%, to 144.7 billion Riyals from 149.8 in Q1 2025. * Non-oil revenue rose by?2% from 113.8 billion to 116.3 billion Riyals a year ago. * Military expenditures increased by 26%, to 64.7 billion Riyals, compared with 51.4 billion Riyals in Q1 of 2025. The International Monetary Fund reported that the GDP growth rate was 2.8% in the first quarter of this year, down from 3.7% last year. However, the impact on the economy is expected to be'short-lived' and 'limited, according to the IMF. * The kingdom is following its Vision 2030 economic plan, which requires hundreds of billions in government investment to reduce the dependence on hydrocarbon revenue. Saudi Arabia's budget deficit in 2025 was 276 billion riyals, higher than the 245 billion riyals forecast.
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As Kyiv's ceasefire proposal approaches, 22 Russians are killed in attacks
At least 22 people were killed in Russian attacks on Ukraine on Tuesday, including 12 during one of the most severe strikes this year. The deadline for Kyiv's proposal to start an open-ended truce at midnight was approaching. Russia has announced a ceasefire on May 8-9. This is the date when they will commemorate the Soviet Union's victory over Nazi Germany during World War II and hold a military display. Ukraine announced, as a response, that it would propose an open-ended truce starting at midnight on Wednesday, and urged Russia to reciprocate. Volodymyr Zelenskiy, the president of Ukraine, said that it would be impossible for Russia to stop strikes for a day in order to hold a military parade after having heavily bombarded Ukraine. Emergency services reported on Telegram that at least 12 people had died in the city of Zaporzhzhia. Ivan Fedorov is the regional governor. According to him, there were at least 16 other injuries. He said that the attack damaged residential buildings, a vehicle repair service, and a automobile wash. He added that the attack caused fires to break out at a store and an unidentified business. Images from the scene that he shared show a heavily damaged structure with smoke and flames billowing. First responders are seen burning cars as they help 'bloodied people' leave the site. Zelenskiy reported on Telegram that three aerial bombs dropped over the eastern frontline town of Kramatorsk had killed five more?people. Zelenskiy said on Telegram that five people were injured. He warned that the death toll could rise. Five Ukrainian officials were killed in a Russian attack on gas?production plants in the Poltava area overnight, according to Ukrainian officials. The Russian state-run news agency reported that a drone attack by Ukraine on the Chuvashia area killed two people on Tuesday. (Reporting and editing by Kevin Liffey, Peter Graff, and Yuliia Dyesa)
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Trump: Iran should "wave the white flag of surrender".
On Tuesday, President Donald Trump dismissed Iran's military capability and said that?Tehran should "wave the white flag of surrender", but was too proud to do it. Trump told reporters that Iran has reduced its military to "peashooters", and that Tehran wants to make a deal in private despite public sabre rattling. They play 'games', but I can tell you that they are looking to strike a?deal. Who wouldn't want to make a deal, "when your military is totally gone?" He said. Trump praised the U.S.-led blockade on Iranian ports in the area. "It is like a sheet of steel. No one is going to challenge the blockade. "I think it is working very well", he said. Trump replied: "Well you'll know, because I'll tell you." They know what to avoid. Trump said Iran should "save the 'white flag of surrender. "If this was a fight, then they would stop it," Trump said.
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Duke Energy beats revenue and profit estimates due to rate recovery, weather boost
Duke Energy, a utility company in the United States, exceeded Wall Street's expectations for first-quarter revenue and profit on Tuesday. This was due to?a recovery of infrastructure investments based on rates and favorable weather. U.S. utilities are pushing to raise customer electricity rates in 2026 to 'pay for infrastructure improvements.' Power grids are being strained due to extreme weather, increasing demand from data centers and electrification. Duke said in its most recent earnings call to investors that it has signed agreements with electric companies for 7,6 gigawatts of data center demand since 2024. The majority of these projects are currently under construction. In the quarter ended March 31, 2.7 GW worth of these data center projects was added. Duke executives stated that the company is in advanced talks on?another 15.4 GW data centers. One GW of electricity is enough to power approximately 750,000 U.S. homes. Rate case processes are used by regulated utilities to determine the amount customers pay for electricity, gas and other services like private water and steam. Duke Energy's revenue for the first quarter was $9.17 billion. This is up from $8.25 million a year earlier. It also beat analysts' estimates of $8.43 millions, according to LSEG data. The natural gas unit of the company, which services 1.6 million customers across North Carolina, South Carolina Tennessee, Ohio, and Kentucky, reported a quarterly profit in excess of $532 millions, up from $349 million just a year earlier. The electric utilities segment, however, saw a decline in income to $1.25 billion from $1.28 million a year earlier. This segment of the market, which has 7.9 million customers in North Carolina, South Carolina and Florida, Indiana, Ohio, Kentucky and Indiana, owns a collective 51,000 megawatts?of energy capacity. The company based in Charlotte, North Carolina posted an adjusted profit per share of $1.93 for the three-month period ended March 31 compared to estimates of $1.87. Duke Energy asked North Carolina regulators for approval in?April to increase?rates. This was to recover more than $800,000,000 of higher purchase costs during a severe winter cold snap. The company said it aimed to recover approximately $500 million at Duke Energy Carolinas, and $309 millions?at Duke Energy Progress. If approved, the changes would result in an increase of approximately $6.90 and $8.88 on average for monthly bills, respectively, beginning June 1. Varun Sahay reported from Bengaluru, and Laila Kearney from New York. Shreya Biwas and Joe Bavier edited the article.
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Israeli strikes in Gaza kill three Palestinians including a child.
Health officials reported that Israeli strikes on the Gaza Strip killed at least three Palestinians - including a child - and injured several others. Medical personnel said that a Palestinian was killed by an Israeli airstrike and two others were injured near the Sheikh Radwan neighborhood in Gaza City. Another Palestinian was also killed by Israeli tank shelling, and several other Palestinians were injured. A medic said that an Israeli air strike on a Gaza police station killed a 15 year old child later in the day. Hamas's interior ministry reported that some policemen were also injured in the attack. Israel's attacks on Gaza’s Hamas-run police force have intensified, as reported previously. The militant group used the force to strengthen its grip in the areas that it controls. No immediate Israeli comments were made on the incidents. Israel has been committing attacks against Palestinians almost every day, despite a ceasefire in October 2025. Israel and Hamas blame each other for ceasefire violations. Mohammed Al-Ghandour, one of the victims killed on Tuesday, was remembered by his family and friends at Al Shifa Hospital. A woman comforted two girls who were crying outside the morgue of the hospital. Abu Omar Al-Naffar, the uncle of the victim, said: "The Zionist enemy does not know what truce is and does no commit to international laws or treaties." Local medics claim that at least 830 Palestinians were killed since the ceasefire agreement came into effect. Israel, on the other hand, claims that militants killed four of their soldiers during the same time period. Israel claims that its'strikes' are intended to thwart attempts by Hamas, and other Palestinian militants, to stage attacks on its forces. According to Gaza health authorities, more than 72,500 Palestinians were killed, the majority of whom were civilians, since?the Gaza War began in October 2023. Israel has occupied more than half Gaza since the ceasefire in October last year. It has forced residents to leave and destroyed almost all structures. Nearly all of the more than 2 million Palestinians who live in Gaza now live in a small strip of land along the coast. They are mostly living in tents or damaged buildings and under de facto Hamas control.
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Ball Corp, a manufacturer of aluminum packaging, beats Q1 expectations on stable demand
Ball 'Corp beat the quarterly results expectations?on Tuesday, and it backed its?annual target. It based this on its ability pass on to consumers aluminum price increases caused by the Middle East Conflict. Analysts expect major shortages of the material in the transport, construction, and packaging industries this year due to the war in Iran. Ball Corp., one of the largest producers of aluminum beverage containers in the world, has been put under pressure by President Donald Trump’s import tariffs. Early trading saw shares of the Colorado-based firm down by 2%. The top beverage producers and consumer packaged goods firms have warned about the impact of higher packaging costs such as aluminum on their profits in this year. Ball Corp claims it does not have direct exposure to the Middle East. However, the higher prices of aluminum linked to the conflict has increased input costs. The company's contracts allow them to pass on these costs directly?to their customers, which limits the impact of this cost on its business. Ball reported revenues of $3.60 billion in the three-month period ending March 31, helped by higher aluminum prices. According to LSEG data, analysts expected an average revenue of $3.36 billion. The company's adjusted quarterly earnings per share surpassed analysts' estimates of 85 cents. Cost of sales increased by nearly 19% to $2.96 billion. North and Central America is the major revenue-generating region for the company. Beverage packaging sales grew from $1.46bn to $1.78bn in a year. Ball reported an increase of 0.8% in global aluminum packaging for the third quarter, compared with a 2.6% growth in the prior year. (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Joyjeet Das)
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US trade deficit increases on imports, while crude oil exports rise
The U.S. Trade Deficit widened in march as a boom in artificial intelligence investments pulled in imports. This more than offset an increase in exports which was partly boosted by crude?oil shipments?amid Middle East conflict. The Commerce Department's report on Tuesday confirmed the fact that the trade deficit was a drag in the economy during the first quarter. Imports of goods are expected to increase, due in part to the AI spending spree. The increase in imports can be offset by the rise in petroleum exports. This is because economists expect that the U.S. and Israeli war against Iran will disrupt oil shipments. We expect the trade surplus to shrink in April, as U.S. oil and petroleum product exports have surged," said Grace Zwemmer of Oxford Economics. The Bureau of Economic Analysis & Census?Bureau, part of the Commerce Department, reported that the trade deficit increased by 4.4% to $60.3 Billion. The economists polled predicted that the trade deficit would reach $60.9 billion by March. The trade deficit subtracted 1,30 percentage points of the growth of gross domestic product in the first quarter. The economy grew by 2.0% annually last quarter. Imports rose 2.3% in March to $381.2 Billion. Imports of goods grew 3.6% to 302.2 billion dollars, driven by capital goods reaching a record high $120.7 billion. Imports are the majority of materials used in AI and the data centers that support it. Imports for computer accessories rose $2.0 billion, while those for computers dropped $2.3 billion. Petroleum and industrial supplies, including petroleum, increased by $2.1 billion. Imports of consumer goods increased by $2.4 billion, while motor vehicles and parts imports grew $3.6 billion. Exports increased by 2.0%, reaching a record high of $320.9 Billion. Exports of goods jumped 3.1%, to a record high $213.5 billion. Exports of industrial materials and supplies reached a record high of $5.0 billion, boosted by an increase of $2.8 billion in crude oil. Fuel oil exports increased by $1.6 billion. The exports of food, feed and beverages increased to the highest level since August 20, mainly due to soybeans. Exports of consumer goods decreased by $1.7 billion. The goods trade surplus grew by 4.8%, to $88.7 Billion. Adjusted for inflation, the goods trade deficit increased 6.7% to $90.8 Billion. Imports of service fell $1.9 billion from $79.0 billion due to a decrease in charges for intellectual property, transport and travel. Travel services contributed to a decline in exports of $0.3 billion, bringing them down to $107.4 Billion. Transport services exports increased, as did?financial services and other business service exports. The U.S. has a goods trade deficit with many countries, including China (Taiwan), Mexico, Canada, India and South Korea. The U.S. deficit with the European Union grew $4.1 billion from $9.2 billion to $9.2 milliards in March. Donald Trump, the president of the United States, has placed tariffs on trading partners citing trade deficits.
Gold recovers from a more than one-month-low; Middle East threats linger
The gold price rose on Tuesday, after it had fallen to a low of?more that one month in the previous session. Investors assessed the impact the Middle East conflict could have on inflation and interest rate expectations.
Gold spot was up 1.2% at $4,574.17 an ounce by 11:42 am EDT (1542 GMT), having touched its lowest level on Monday since March 31.
U.S. Gold Futures rose 1.2% to $4.585.50.
Oil prices are also easing, which is providing some support. "The market will continue to watch the headlines but could shift its focus a bit to economic data," said Jim Wyckoff.
He added that "gold bulls must have a fundamentally significant spark in order to regain their feet."
The United Arab Emirates claimed that it was under attack by Iranian missiles and drones. Washington, however, said that a fragile ceasefire remained intact despite a brief exchange of fire on the day before as U.S. troops attempted to forcefully open the Strait of Hormuz.
Since the attacks on February 28, the narrow waterway that carries a significant share of oil, fertiliser, and other commodities around world has been closed, driving prices up all over.
The oil prices fell on Tuesday but the losses were not as large. Energy prices that are too high could stoke inflation and delay central banks' ease cycles.
Gold is often seen as a hedge to inflation and uncertainty. However, when interest rates rise, gold's appeal tends?to wane, because rising yields makes non-yielding investments less appealing.
Fawad Rasaqzada is a market analyst for City Index. He said that safe-haven demand has not diminished, even if it's influence has decreased as gold becomes a more risk-sensitive investment.
"However, the constant central bank purchases, along with the need to hedge against inflation have helped limit further downside movements so far," Razaqzada stated.
The release of the U.S. Employment Report later this week is a test of whether or not the economy remains resilient enough to allow the Federal Reserve to maintain its monetary policy, or if a softening of the labor market might revive the argument for rate reductions.
Silver spot rose by 1.1% to $73.49; platinum climbed 1.2% to $2,967.35 and palladium jumped 1.8% to $1506.01. Ashitha Shivprasad, Bengaluru (Reporting) Mark Potter and Shalesh Kuber (Editing)
(source: Reuters)