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Kuwait Petroleum Corp. reports damage to units following Iran drone attacks
On?Sunday?, Iranian drone attacks hit multiple targets in Kuwait. State?energy company Kuwait Petroleum Corporation reported fires and "severe damage" to some units. KPC stated in a press release that teams are working to contain fires at National Petroleum Company and Petrochemical Industries Company affiliates. KPC said earlier that a drone had attacked the complex housing the KPC headquarters and oil ministry in Shuwaikh. Kuwaiti state media, citing Kuwait's finance ministry, reported that an Iranian drone had allegedly 'hit an office complex of government ministries, inflicting significant material damage, but no injuries. Kuwait's Ministry of Electricity and Water said that two power-generating units were taken out after Iranian drones attacked two desalination and power plants. The damage was significant. In all incidents, no injuries have been reported. The U.S. and Israeli 'war on Iran' is now in its sixth weeks, with Tehran attacking Israel and Gulf Arab states that host U.S. military bases. Iran's Revolutionary Guards have claimed responsibility for the attacks on Kuwaiti petrochemical facilities, as well as those in Bahrain and the United Arab Emirates.
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PMI data shows that Saudi Arabia's non oil business activity shrank in March amid conflict.
A 'business survey' revealed that Saudi Arabian non-oil sector activity fell in March for the first time since August 20. The war in the Middle East had slowed down supply chains. S&P Global's?seasonally-adjusted Riyad Bank Saudi Arabia Purchasing managers' Index (PMI) fell to 48.8 from 56.1 in Feb. The readings below 50 indicate contraction. Naif Al Ghaith is the chief economist at Riyad Bank. He said that the drop into contraction was largely due to short-term uncertainties linked with the geopolitical tensions of the region. "The soft reading was mainly?driven by a pause in the new orders, as clients adopted more caution." Export orders experienced a notable drop, and some firms reported a temporary slowdown of cross-border activities. This led to a moderated output, Al-Ghaith explained. For the first time, both output and new orders have declined since August 2020, when the COVID-19 epidemic brought economies to a grinding halt. New orders dropped to 45.2 in March, down from 61.8 in February. Export demand was weakening sharply. New export orders posted their steepest drop?in nearly six years. Exports were 'completely stopped' by some firms, while others experienced greater logistical problems. The conflict has slowed the flow of water through the Strait of Hormuz, but the supply strains have increased. This situation may continue as long as the Strait of Hormuz remains effectively blocked. Business expectations for the coming 12 months remain 'positive' despite a 'weakening of their lowest level since June 2020. Some firms are still confident about government spending, the development of infrastructure and the improvement in demand on the long term. (Reporting and Editing by Hugh Lawson).
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South Korea asks Gulf Nations for a steady supply of energy and safety of Korean vessels
The South Korean Ministry of Finance announced that Koo 'Yun-cheol, Minister of Finance, met with envoys of Gulf countries on Sunday to discuss energy security and the safety of 'Korean vessels near the Strait of Hormuz. This is due to the escalating Iran conflict disrupting shipping. The ministry said that during the Friday meeting, Koo requested the ambassadors of the Gulf Cooperation Council to ensure a constant supply of oil, liquefied gas, naphtha and urea as well as other critical resources. He also asked them to ensure the safety and security for Korean vessels and crews near this vital strait. The statement stated that the envoys referred to South Korea as a nation of "top priority". They also pledged to work closely with Seoul in order to maintain a stable supply. Like many Asian economies, South Korea relies heavily upon energy imports. This includes through the Strait of Hormuz. The Strait of Hormuz was the conduit for 20% of 'world oil' before Israel and the U.S. launched their war on the 28th of February. Since then, Iran has effectively closed the waterway. This has pushed up energy prices and raised fears of a global recession. Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait and Oman are the six GCC member states. Reporting by Cynthia Kim, Editing by William Mallard
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Egypt increases electricity prices for households and businesses that use more energy amid energy crisis
The electricity ministry announced on Saturday that Egypt will raise electricity prices for residential and commercial consumers who use more electricity. This increase is due to a global energy crisis caused by the Gulf War. The government has taken a number of measures to reduce energy consumption and curb fiscal pressures as rising import costs put pressure on the finances of the most populous Arab country. The ministry stated that the increase would only affect households with higher consumption and commercial users. This was done to ensure the supply of electricity across residential, industrial and commercial sectors. The report said that electricity rates for residential bands up to 2,000 kilowatt hours per month would remain the same, but tariffs for higher residential brackets will increase by an average 16%. It added that commercial electricity prices in all brackets will increase on average by about 20%. In March, Prime Minister Mostafa. Madbouly stated that Egypt's energy import bills had more than doubled in the last few years since the start of the conflict involving the United States and Israel. This forced the government to increase fuel prices, raise fares for public transportation, and slow down some state projects, to relieve pressure on the public finances. Egypt implemented measures to rationalise its energy consumption in March, including a move towards earlier closing times for commercial venues. This was due to the rise of global oil prices during the conflict. Inflation has been in double digits since September 2023, when it peaked at 38%. The country is already struggling with heavy debts. Reporting by Momen Atallah and Enas Alashray
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Slovak PM: EU should lift sanctions on Russian oil, gas and other energy sources to improve energy security
Robert Fico, the Slovakian Prime Minister, said that the European Union must end sanctions on Russian oil and gas imports and take steps to restore Druzhba pipeline flows, as well as end the conflict in Ukraine, in order to tackle the energy crisis stemming from the war with Iran. Fico stated in a press release after a phone call with Hungarian Premier Viktor Orban, that the EU should re-establish dialogue with Russia to ensure member states get gas and oil from all sources including Russia. Hungary and Slovakia are the only two EU countries that maintain relations with Moscow. Oil prices have risen?since U.S.-Israeli strikes against Iran began on February 28, causing a disruption to oil supplies in the Gulf and causing what the International Energy Agency calls the largest oil supply interruption in history. Central European nations have taken steps to reduce the impact of high fuel prices on consumers and businesses. By the end of 2025, only a fraction of EU oil imports came from Russia. This was after a steep decline in imports following Moscow's invasion of Ukraine. By January 27, Kyiv reported that a Russian drone attack had hit Ukrainian pipeline equipment, disrupting Russian oil?shipments. Budapest and Bratislava accuse Ukraine of intentionally delaying repairs in order to resume oil flow through the Druzhba pipe. This has triggered a political dispute which?has seen Hungary blocking an EU loan for Kyiv. Ukraine claims it is repairing it as fast as possible. Fico stated that it is not enough to address the energy crisis at the national or only local level. Five other European Union countries are also calling for a windfall profit tax on energy companies in response to rising fuel prices. This was revealed by a letter sent to the EU Commission on Saturday. The energy chief of the bloc said on Tuesday that it was considering reinstating energy crisis measures from 2022. This included proposals to reduce grid tariffs and electricity taxes.
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Taiwan has received assurances from a'major country' about LNG supplies
Taiwan's economy minister announced on Saturday that the energy minister of a "major country" producing liquefied gas had given Taiwan assurances about supply. He was speaking in relation to the?impact of the Iran War on Middle East energy imports. Taiwan, which is a major producer of semiconductors, relied on Qatar to supply around a third its LNG prior to the conflict. It has now said that it has secured alternative supplies from countries such as Australia and the United States for the months ahead. Kung Ming Hsin, Taiwan's Economy Minister, told reporters in Taipei that Taiwan enjoys good relations with its?crude gas and natural oil suppliers. Therefore, adjusting the origin of shipments or purchasing additional spot -cargoes will not be a problem. Kung stated that the energy minister from a "major energy producing country" had contacted him about two weeks prior. The person "explained that they would fully support our natural gas needs. He added that if we had any requests, we could let them know. Kung added: "Another nation even stated that certain countries had released strategic petroleum reserves and could help coordinate the matter if Taiwan needed assistance." He said, "This shows Taiwan has earned considerable international goodwill through the long-term confidence it has built." He refused to identify the countries involved. Angela Lin, spokesperson of state-owned refiner CPC said that at the same?newsconference, crude oil inventories are being maintained at levels prior to conflict and that overall petrochemical supply has remained stable. CPC Chairman Fang Jeng Zen said that a new agreement with the U.S. would see 1.2 millions metric tons of LNG delivered?annually. He added that Taiwan does not intend to import crude oil or LNG from Russia. (Reporting and editing by Ben Blanchard, Roger Tung and Joe Bavier).
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Five EU Finance Ministers Call for Tax on Windfall Profits of Energy Companies
In response to fuel prices rising due to the Iran War, five?European Union Finance Ministers have called for a tax to be placed on the 'windfall profits' of energy companies. This was revealed in a letter sent to the EU Commission on Saturday. In a joint letter dated on Friday, the finance ministers from Germany, Italy Spain Portugal and Austria called for such a move, stating that it would "signal" to others that they are united and capable of taking action. They wrote: "It will also send a message that those who benefit from the war's consequences must do their part in easing the burden of?the public." Since the U.S. and Israeli strikes against Iran began on 28 February, oil and gas prices have risen dramatically. This is similar to the energy crises Europe experienced after Russia invaded Ukraine - in '2022 - despite the fact that EU countries are now getting more of their energy from renewable sources. LETTER HIGHLIGHTS 'MARKET DISTORTIONS' In a letter addressed to EU Climate commissioner Wopke Hekstra, the Ministers referred to the possibility of a similar tax to be implemented in 2022 as a way to combat high energy prices. They wrote: "Given current market distortions, and fiscal constraints the European Commission must develop quickly a similar EU wide contribution instrument based on a sound legal basis." The letter did not specify the level of windfall taxes that ministers would propose, nor which companies should be affected. The energy chief of the bloc said on Tuesday that it is considering reviving measures taken in response to the energy crisis in 2022. This includes proposals to "curb grid rates" and taxes on electricity. After Russia cut off gas deliveries, the EU implemented a series of emergency policies. These included a?EU-wide gas price cap, a tax imposed on windfall profits of energy companies, and targets to?reduce gas demand. The Middle East conflict has a significant impact on the global energy prices. Since the U.S. and Israel war against?Iran started on February 28, European gas prices have risen'more than 70%. Dan Jorgensen, EU Energy Commissioner, said that Brussels is particularly worried about the supply of refined petroleum in Europe such as diesel and jet fuel. Reporting by Andreas Rinke, Writing by Tom Sims, Editing by Alison Williams
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Senegal bans travel by government officials as Iran oil shock affects public finances
Senegal has banned all travel abroad by top officials and ministers that is not essential. The government warned of "extremely challenging" times as a result of the U.S./Israeli conflict with Iran, which will increase global oil prices, straining Senegal's budget. The price of Brent crude has soared and governments have been urged to act to reduce the negative effects. Senegal Prime Minister Ousmane sonko, speaking at a youth event on Friday night in Mbour, pointed out that oil is trading for about $115 per barrel, almost twice what was assumed to be the price in Senegal’s budget projections. He announced that he has already cancelled his own trips to Niger and France. The?crisis has prompted governments across West Africa and the world to take a number of?measures, including increases in fuel prices, subsidies and remote work. Sonko said that such actions were a "justification" for Senegal, a debt-ridden country. He said that?additional?measures would be announced next?week, and the Energy and Mines?Minister is expected to address?the?nation in the?coming?days?to detail efforts to mitigate?the impact of the?price shock. (Reporting and editing by Joe Bavier, Diadie Ba and Bate Felix)
Trump pivots on new 10% global tariff and new probes following Supreme Court setback
U.S. president Donald Trump moved quickly on Friday to replace tariffs that were struck down by the Supreme Court, with a temporary 10% worldwide import duty for 150-days and ordered new investigation under other laws which could allow him reimpose the tariffs.
Trump signed an executive order late Friday night to begin imposing new tariffs on Tuesday under Section 122 of Trade Act of 1974. This will replace tariffs of up to 50% that were imposed by the 1977 International Emergency Economic Powers Act, which the Supreme Court declared to be illegal. It also ends the collection of these now-banned tariffs.
The orders continue exemptions that were already in place, including for aeronautical products; passenger cars; some light trucks; goods imported from Mexico and Canada which are compliant with U.S. Mexico-Canada Trade Agreement; pharmaceuticals; and certain critical minerals; and agricultural products.
Scott Bessent said that the new 10% duties, and possibly enhanced tariffs, under Section 301 of the unfair practices statute, and Section 232 of the national security statute, would result in almost unchanged tariff revenues in 2026.
"We will return to the same level of tariffs for the countries." Bessent, a Fox News reporter, said that it will be less direct and a little more convoluted. The Supreme Court's decision has reduced Trump's bargaining power with trading partners.
Section 122, which has never been used before, allows the president to impose up to 15% in duties for up to 150-days on all countries in order to deal with "large and significant" balance of payment issues. This authority does not require any investigations or other procedural limitations. After 150 days the Congress would have to approve their extension.
Trump said, "We have great alternatives." "Could mean more money." Trump said that the alternative tools would allow us to take in more revenue and make us stronger.
The 10% tariff order justified the use of Section 122, noting the U.S.'s "large and serious balance-of-payments deficit" and that the situation was worsening.
The Section 122 Tariffs will expire before a final decision can be made. This is according to Josh Lipsky, International Economics Chair at the Atlantic Council in Washington.
Trump also said that his administration was initiating a number of new?country specific investigations under Section 301 of 1974's Trade Act "to protect our nation from unfair trading practices of foreign countries and companies."
The executive order instructed the U.S. Trade Representative to investigate "certain unfair and discriminatory policies, practices and acts that burden or restrict U.S. Commerce," but it did not specify any specific 'targets.
USTR has opened investigations on China, Brazil and other major trading partners such as Vietnam and Canada.
FASTER INVESTIGATIONS
Trump's move to other statutes including Section 122 while initiating new investigation under Section 301 was widely anticipated. However, these investigations have taken an average of a year.
Trump has said that the 10% tariffs will only last for five months.
When asked if the rates would end up higher in the future after more investigations, Trump replied: "Potentially." It depends. "Whatever we want them to become."
He said that some countries, which "have treated us badly for many years", could face higher tariffs. For others, "it will be very reasonable" for them.
In the wake of this ruling, the fate of dozens trade agreements to reduce IEEPA-based tariffs and negotiations with U.S. major trading partners remained uncertain. Trump did say that he expected most of these deals to be continued. He said that he expected many of the deals to continue.
Tim Brightbill of the Washington law firm Wiley Rein said that this is unlikely to have an impact on reciprocal trade agreements with our trading partners. "Most countries prefer the certainty of a deal over the chaos last year."
U.S. trade representative Jamieson Greer stated that details about new Section 301 investigation would be revealed within the next few days. She added that these investigations are "incredibly durable legally." Trump used Section 301 during his first term to impose tariffs on Chinese imports.
REFUNDS TO Be 'Litigated'
Penn-Wharton Budget Model's economists estimate that the Supreme Court's ruling could result in a refund of up to $175 billion collected as tariffs over the last?year.
When asked if he'd refund the IEEPA duty, Trump replied that the matter was likely to be litigated between two and five years. This suggests that a fast, automatic refund is unlikely.
Bessent, speaking in Dallas to business leaders, said that the Supreme Court had not provided any instructions regarding refunds. He added that those were "in dispute" and that it could take weeks, months or even years.
MORE PROCEDURES
Trump chose IEEPA last year to impose tariffs in part because of the 1977'sanctions statute', which allowed for fast and wide action with little or no restrictions. He had used it to punish countries for non-trade disputes such as Brazil's prosecution against former president Jair Bolsonaro, who was a Trump ally.
Janet Whittaker of Clifford Chance, Washington, says that while Trump's investigations may prolong tariff uncertainty, it could also bring more order to his tariff policy by forcing him rely on laws with well-understood processes, requirements for public comments and research, as well as longer deadlines.
Whittaker stated that "the administration will need to follow these processes and conduct investigations. This means for businesses more visibility in the process."
Robert Lighthizer was Trump's first-term trade chief. He said that he wanted Congress to revise old trade laws so Trump could have new tariff tools.
Lighthizer stated, "I hope they will use this opportunity to change the system." Reporting by Gram Slattery in Washington; additional reporting by Doina chiacu. Writing by David Lawder. Editing by Deepa Babington. David Gregorio, Diane Craft, and Deepa Babington.
(source: Reuters)