Latest News
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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)
Tax disputes between India and foreign companies
In India, foreign companies often face difficulties due to the high tax demands imposed on them by India. These include levies on large M&A deals or duty evasion.
The following are the most important tax disputes that have occurred in the past and currently involving foreign companies.
Kia, a South Korean car manufacturer, has been accused by officials of evading $155 million worth of taxes through misclassification. The company, however, is disputing this privately with the officials.
Kia imports parts of a vehicle in separate shipments, assembling the vehicles in India. They pay a lower applicable tax, avoiding the higher tax when the parts are assembled as a CKD (completely knocked-down unit) of a automobile.
VOLKSWAGEN
Volkswagen, in a case similar to Kia's, has sued Indian authorities at a Mumbai court, after receiving a tax notice of $1.4 billion for importing parts that were related to 14 models including some Audi models instead of classifying the parts as CKD.
In its court case, the German automaker argues that India's tax demands are "impossibly large" and will affect their investment in India as well as foreign investor sentiment.
VODAFONE
In one of the more controversial cases, Vodafone received a tax demand of $2 billion when it bought Indian assets from HutchisonWhampoa for $11 billion in 2007.
In the dispute, there were years of litigation. The Indian top court ruled in favour of the company. This was followed by a law change that reimposed demand and international arbitration between both sides. Vodafone won the arbitration in 2020.
CAIRN ENERGY
Cairn Energy, a British company, was hit with a tax bill of more than $1.4billion in 2007 for the transfer shares that occurred during reorganization.
Cairn sold its majority share of Cairn India in 2011 to Vedanta Ltd. This reduced its stake in the Indian firm to around 10%.
In 2021, the Indian government and Cairn india finally settled their years-long dispute by offering to refund tax amounts.
PERNOD RICHARD
Indian authorities have accused the French liqueur giant Pernod Ricard of undervaluing some imports over a period of more than 10 years to avoid paying full duties.
India has demanded roughly $250 million of back taxes, but Absolut and Chivas Regal have disputed the findings. The dispute is still pending.
Pernod warned the Narendra Modi administration in 2022 that its tax disputes with authorities over the valuation of liquor imports had hampered new investment and its existing business.
Indian authorities have accused BYD, a Chinese automaker, of not paying $8.37m for parts used in cars that it assembles and then sells in India.
BYD deposited the request but the investigation is still underway and could result in additional tax charges and penalty, as has been reported previously. (Reporting and editing by Aditya K. Kalra; Arpan Chaturvedi)
(source: Reuters)