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The rupee is under pressure following the oil rally after the Iran tanker attack
The Indian rupee will open lower?on?Thursday as crude oil prices resume their climb. This will continue to put pressure on the Asian nation's terms-of-trade and currency. The 1-month forward non-deliverable?indicates?that the rupee will likely open between 92.18 and 92.22 against the U.S. Dollar, after having settled at 92.04 Wednesday. Iraqi officials reported that Iranian explosive-laden ships had struck two fuel oil 'tankers. This fueled fears of a supply disruption resulting from the U.S./Israeli war against Iran. Brent crude rose 7.3% to $98.60 per barrel after Iraqi security officials said Iranian explosive-laden boats had hit two fuel oil?tankers. The tanker attack was overshadowed by relief that the International Energy Agency (IEA) agreed to release 400 million barrels to help control prices. ING Bank stated in a recent note that disruptions in oil flows through the 'Strait of Hormuz' are likely to continue as long as there is no sign of de-escalation. The oil price has been fluctuating wildly in the past week. It ranged from $81 to $120 per barrel, despite rapidly changing headlines about the war. After U.S. president Donald Trump announced a deescalation of the?Iran war, markets began pricing the possibility that strategic reserves could be released to cap the rally. The attack on fuel tankers has revived concerns about supply disruptions. This highlights the fragility of this relief. A currency trader at a private bank stated that "with oil swinging this way, the rupee would remain vulnerable." "It is expected that the RBI will intervene to maintain the rate of decline in the rupee, but not necessarily halt the movement." Traders said that the Reserve Bank of India (RBI) has actively intervened in the foreign exchange markets in recent sessions. They have sold dollars to reduce the pressure caused by the fluctuating oil prices. (Reporting and editing by Harikrishnan Nair; Reporting by Nimesh Vora)
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GRAINS-Chicago soyabeans track soyoil price, extend gains to third day
Chicago soybean futures rose a third time in a row on Thursday. They followed the rise of soyoil after global crude oil prices recovered. Investors also weighed 'the impact of military conflict?in 'the Middle East. Soyoil, which is used widely to make biodiesel, can benefit from higher crude oil prices. The price of corn and wheat also rose. As of 0311 GMT, the most active soybean contract traded on the Chicago Board of Trade was up 0.6% to $12.21-1/2 per bushel. Soyoil rose 0.8% to 67.68cents per pound. CBOT wheat rose?1%, to $6-1/2 per bushel. Corn gained 0.6%, to $4.63 per bushel. After Iraqi officials reported that Iranian explosive-laden ships had struck two fuel oil tanks, the price of oil shot up. This was in addition to other supply disruptions caused by the U.S. and Israeli war against Iran. Cargill has halted exports of soybeans from Brazil to China in South America after changes to Brazilian government inspections made it difficult for traders comply with the new rules, said the company on Wednesday. The company reported that the Brazilian Agriculture Ministry introduced stricter sanitary checks on soybeans bound for China in order to detect pests and weeds. This was done after a request by the Chinese government. Paulo 'Sousa, Cargill Latin America's head of Latin America, said that the move was unusual in the grain market. Paulo?Sousa, Cargill Latin America's head, said that Cargill temporarily stopped purchasing soybeans from local farmers in Brazil because the current tightening rules prevent exports to China. China is the largest buyer of Brazilian soybeans. It purchases around 80%. Brazil is the largest producer and exporter in the world of oilseed. Investors are also adjusting their positions in hopes of a breakthrough during the upcoming trade negotiations between the United States, the top soy importer in the world, and China.
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Aluminum gains continue as concerns about supply amid Mideast conflict persist
Aluminum prices continued to rise on Thursday. They were boosted by lingering fears about a tightening of global supply amid the Middle East conflict which shows no signs of abating. As of 0212 GMT, the most traded aluminium contract on the Shanghai Futures Exchange rose 1.25% to $25460 yuan per metric ton. The benchmark three-month aluminum on the London Metal Exchange rose 1.48% to $3504 per ton. This is closer to the nearly four-year-high of $3,544 that was reached earlier this week. Prices have risen as a result of supply concerns caused by the war in the Middle East. The Middle East is responsible for about 9% of the global supply of aluminium. Iran and the United States have both signaled that their war will not be over soon. Iran has warned the world to prepare for oil priced at $200 per barrel, after hitting tankers near the Strait of Hormuz and in Iraqi waters. ING analysts stated in a note that the situation is unstable and aluminium remains highly sensitive to geopolitical headlines, keeping volatility high. Commodity traders Mercuria have cancelled or earmarked delivery of nearly 100,000 tons aluminium at LME-approved storage facilities in Port 'Klang, Malaysia Monday is a holiday. The analysts at Benchmark Mineral Intelligence have raised their forecast for 2026 aluminium prices to $3,100 per ton from $2,900, as recent developments?increase the likelihood of an even more acute supply crunch. Other SHFE metals saw a 0.41% decline in copper, while nickel grew by 0.68%. Lead was flat. Tin fell 1.04%. Zinc rose 0.06%. Copper slipped 0.06% among?other LME Metals. Nickel fell 0.36%. Lead added 0.21%. Tin gained 0.39%. Zinc climbed 0.6%.
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South Korean Parliament expected to approve $350 billion US investment bill
South Korea's Parliament is expected to adopt a special law?on Friday to implement Seoul's $350 Billion investment commitments to?strategic?U.S. A trade agreement signed last year covers a number of industries. The law was designed to implement the trade agreement signed by South Korea and the United States in November. Under that agreement, South Korea committed to investing $200 billion into strategic industries in America as well as $150 billion to shipbuilding cooperation. This investment package was linked to Seoul receiving better tariff terms. The bill is expected to be passed by the National Assembly in its plenary meeting on Thursday. If passed, it would create an investment corporation backed by the state with capital of 2 trillion won ($1.4billion) and a strategic investment fund. The bill identifies shipbuilding, semiconductors and pharmaceuticals as priority sectors for investment, along with energy, critical minerals, artificial intelligence, quantum computing, and energy. Additional sectors can be added via presidential decree. The principle of "commercial rationality" is a central requirement for U.S. investment. This means that they must generate enough cash flow over the course of their lifetime to cover principal and interests. If national security or the stability of supply chains is in question, exceptions can be made if approved by relevant South Korean parliament committees. A joint U.S. and South Korea committee led by the South Korean Industry Minister will assess project proposals, while a committee headed by the Finance Minister will decide if they should be 'advanced' to a U.S. committee headed up by Secretary of Commerce. This panel can also suggest projects. Uncertainties about the FX and Tariff Late in January, U.S. president Donald 'Trump' threatened to increase tariffs on South Korean products, claiming that Seoul had not yet enacted a trade framework. South Korean officials said that the trade agreement remains valid despite a U.S. Supreme Court ruling in February?that struck a large swath Trump's tariffs. Seoul officials have voiced concern about the impact that U.S. investment would have on a currency already in a weak state. They also said that projects will be based on the?conditions of foreign exchange markets as well as?commercial feasibility. South Korea is currently also included in an broader U.S. The U.S. Trade Representative said that a Section 301 investigation into excess industrial capacities could lead to new duties on major trading partners. (Reporting and editing by Ed Davies.)
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Rickea Jackson claims Falcons' James Pearce Jr. "threatened me to kill"
ESPN and TMZ reported that Los Angeles Sparks forward Rickea Jackson feared for her life when she filed for a 'temporary protection order' against her ex boyfriend, Atlanta Falcons edge runner James Pearce Jr. Pearce, who allegedly 'crash his vehicle into Jacksons' several times on February 7 in Doral, Fla. Pearce is accused of hitting a policeman with his vehicle and fleeing the scene. Pearce was eventually arrested for two counts of aggravated assault with a deadly weapons, aggravated stalking and fleeing from police officers. Jackson's statement reads in part as per two Wednesday reports: "James has repeatedly threatened me with death, James has repeatedly threatened me with harm, James is threatening to injure, James threatens to put a bag on my head, and James verbally and physically abuses me." Jackson said that Pearce had offered her money -- $75,000 to visit him or $200,000 for "to stay in a relationship" with him -- just prior to the car accident on February 7. She stated that she was willing to testify in court against him. Pearce is prohibited from contacting Jackson or getting within 500 feet her home, place of work?and 100 feet her car. The hearing for a permanent injunction will be held on April 21. ESPN reports that at least'seven' other 911 calls were made to police in months preceding the alleged incident of?Feb. According to ESPN, at least?seven other 911 calls were made in the months prior to the?Feb. 7 incident'reported Pearce as stalking or harassing a unnamed girl. Pearce was chosen by the Falcons as the 26th pick in the first round of the draft for 2025. He was voted third in the AP 'Defensive Rookie Of The Year' voting, after recording 10.5 sacks. One forced fumble. One fumble recover. Five passes defensed. Jackson, 24, is a fourth-round pick (first overall) in the 2024 first round by the Sparks. In her second season she finished ninth in the WNBA MVP voting. She averaged 14.7 points, 3.2 rebounds, and 1.7 assist in 38 games. Field Level Media
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As the Middle East war escalates, oil prices rise as Iraqi tankers are attacked.
The price of oil rose on Thursday, after 'Iraqi officials reported that Iranian explosive-laden ships had 'hit two fuel-oil tankers. Brent futures were up $5.69 or?6.19%?to $97.67 per barrel at 0118 GMT. U.S. West Texas Intermediate crude (WTI) was up $5.11 or 5.66%?to $92.36. Farhan al Fartousi, director general of?General Company for Ports', said on Wednesday that two foreign tankers carrying Iraqi oil fuel were struck by unknown attackers and caught fire. Initial investigation by Iraqi security officials revealed that explosive-laden boats from Iran struck the two tankers. Tony Sycamore is an IG analyst. He said: "This seems to be a 'direct and forceful Iranian reaction to the IEA overnight announcement of a mass strategic reserve release aimed to cool?runaway price increases. The International Energy Agency 'agreed? to release a 400?million barrels record of oil in order to control prices, which have risen due to the supply shocks caused by the U.S. and Israeli war against Iran. The U.S. contributes the majority of this release, 172 million barrels, from its Strategic Petroleum Reserve. Tina Teng is a market'strategist with Moomoo ANZ. She said that the IEA's decision to release oil reserves could only be a temporary fix, because disruptions in oil shipments across the Strait of Hormuz, and a production halt of major proportions in certain?Middle Eastern nations, may cause a supply crisis on a longer-term basis. Donald Trump, the U.S. president, said that Washington is in "very good condition" when it comes to its war against?Iran. He also stated that the U.S. would "look very closely at the Straits." U.S. intelligence, however, indicates that Iran's leaders are still intact and not at risk of collapse anytime soon, according to sources who have knowledge of the matter. Teng said that oil prices were continuing to rise as there was no sign of a de-escalation of the war in the Middle East. (Reporting and editing by Tom Hogue, Lewis Jackson and Sam Li)
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How did US presidents tap strategic petroleum reserves in wartime?
The U.S. will release '172 million barrels' of oil from the Strategic Petroleum Reserve. This is more than 40% of an overall release that has been coordinated with other allies to help lower soaring prices caused by disruptions in supply due to the U.S. and Israeli war against Iran. The sale of?U.S. The?U.S. The U.S. Department of Energy announced that the U.S. withdrawal would start next week and last for about four months. SPR holds approximately 415 million barrels of crude oil, the majority of which are high sulfur or sour, which U.S. refineries can process. The crude oil is stored underground in salt caverns that are hollowed out on the coasts of Texas and Louisiana. They can hold 714 million barrels. Here's how U.S. Presidents have used the SPR in times of war. RUSSIA INVADES UKRAINE Former President Joe Biden, in March 2022, a month after Russia invaded Ukraine ordered 180?million barils to be released over a six-month period - this was the largest ever sale from the emergency stock. Biden and later President Donald Trump slowly purchased oil to replenish reserves. However, little was added as Congress needed to provide additional money. ATTACK ON SAUDI ARABIA In 2019, the Houthis, a Yemeni group with ties to Iran, attacked Saudi Arabia. This led to the shut-down of over half the country's crude production. Trump, in his first term, stated that his administration was "ready to tap into the SPR" if necessary. This did not occur, however, as Saudi Arabia's Abqaiq Plant and Khurais Field quickly recovered their oil production. LIBYA?CIVIL WAR Former President Barack Obama released 30 million barrels of oil from the reserve in June 2011 to counter the disruptions on global markets caused by the civil war in Libya, the oil producer. This sale was coordinated by the IEA in Paris, resulting an additional 30 million barrels of oil from other members. OPERATION DESERT SSTORM After the Iraqi invasion, George H. W. Bush, then President, sold 21 million barrels of oil in two phases between 1990-1991. In October 1990, the U.S. demanded a test sale of 3.9 million barrels. After?U.S. In January 1991, after?U.S. (Reporting and editing by Tom Hogue; Timothy Gardner)
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Australian shares fall as fears of inflation fuelled by oil prices increase
Australian shares dropped on Thursday after a two-session recovery. The oil price surge, linked to the Middle East conflict, heightened inflation fears, dampening appetite for risk and increasing expectations of a rate increase next week. As of 2337 GMT, the S&P/ASX 200 index was down 1.3% to 8,633.10. The price of oil soared sharply after the Gulf was still constrained by ship attacks on the Strait of Hormuz. This is a major chokepoint in global crude trading. The markets are now expecting a rate hike by the Reserve Bank of Australia in the next week. This is because the central bank will likely address the rising cost of living pressures caused by increased fuel prices. The markets quickly increased the probability of an increase next week from less than 30% earlier this week. A further move is fully priced in by August. Australian financials fell by 1.2%. The top lender Commonwealth Bank was responsible for 0.7% of the Australian fall. ANZ dropped nearly 2%. Macquarie Group, a leading investment bank, saw its shares fall as much as 2,3%. BHP's and Fortescue’s respective 1,4% and 1.8% declines in share prices weighed on the miners, causing them to lose 1.7%. The sub-index fell further due to the Australian gold sector. It was down by 2.2%. Pantoro?Gold and Evolution Mining were down 4.5% and 2.0%, respectively. The U.S. Dollar strengthened during the Middle East conflict, erasing a large part of the gains made by gold stocks. Goodman Group, the data centre owner, dropped by 3.6%. Healthcare ?stocks slipped 1.3%. The technology stocks fell 3.6% in line with overnight losses on Wall Street. Software firm WiseTech Global tumbled 4.6%. Oil prices increased, and energy stocks rose by 1.4%. The sector has gained 22,8% this year, after falling behind the benchmark over the last three years. The benchmark S&P/NZX50 index in New Zealand was down by 0.4% to 13,236.46.
Liontown, Australia's lithium producer, reports a larger interim loss and is looking to recover its lithium.
Liontown, an Australian company, reported a wider?first-half?loss on Thursday following a non-cash?charge. It also said that it was reviewing the potential expansion of its Kathleen Valley mine due to likely?higher lithium prices.
The price of the 'raw material' used in electric vehicles batteries is recovering after a two-year slump due to a slower than expected EV adoption that led to oversupply.
In its December quarter report, Liontown reported that prices had improved. They achieved pricing of $900 per metric ton - up 28% from the previous quarter. It sold 190 000 tons of spodumene, a lithium raw material in the first half.
The company said that it expects to see cash flow improve in the second half of the year, with FY2026 guidance remaining unchanged and spodumene pricing strengthening into CY2026.
Tony Ottaviano, CEO of the'miner', said that its energy is generated 80% by renewable sources. This means it will be insulated from an increase in oil prices caused by the conflict in the Middle East.
He said Liontown was also considering a brownfield extension at Kathleen Valley, and that the board would decide whether or not to approve it during the first quarter of the next financial year. He said that a decision would likely depend on the direction of lithium prices.
As of 1234 GMT, shares were down up to 3%. They stood at A$1.58.
Liontown reported a net loss after taxes of A$184 (131 million) on a statutory basis for the six-month period ended December 31 compared to a loss A$15 in the previous corresponding 'period.
Liontown reported that the latest loss was due to a non-cash A$104m?accounting?charge related to a derivative convertible note, which was primarily influenced by the share price increase of Liontown from $0.70?to $1.575?over the period.
Last month, LG Energy Solution of South Korea sold its 7.5% stake in the company worth at least A$419m. $1 = 1.4019 Australian Dollars (Reporting and editing by Alan Barona, Christopher Cushing and Melanie Burton from Melbourne and Bengaluru)
(source: Reuters)