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Oil prices rise 1% after reports that Israel is preparing a strike against Iranian nuclear facilities
The price of oil jumped by more than 1% after Israel was reported to be preparing an attack on Iranian nuclear facilities. This sparked fears that the conflict could disrupt supply in this key Middle East region. Brent futures rose 86 cents or 1.32% to $66.24 per barrel at 0003 GMT. U.S. West Texas Intermediate Crude Futures for July rose 90 cents, or 1.45%, to $62.93. CNN reported Tuesday that the United States has received new intelligence suggesting that Israel is planning to attack Iranian nuclear facilities. CNN cited multiple U.S. government officials who are familiar with the issue. CNN, citing officials, added that it was unclear whether Israeli leaders had made a decision. On the news, U.S. crude oil futures rose over $2 per barrel while Brent futures climbed more than $1. Israel's attack on Iran could disrupt oil flows. Iran is the third largest producer in the Organization of Petroleum Exporting Countries. Iran may also retaliate, blocking oil tanker traffic through the Strait of Hormuz, a chokepoint in Gulf through which Saudi Arabia Kuwait Iraq and United Arab Emirates export crude and fuel. Nevertheless, some signs of improvement in crude supply were evident. Market sources cited American Petroleum Institute data on Tuesday to report that U.S. crude stockpiles rose last week, while gasoline and distillate stocks fell. Sources, who spoke on condition of anonymity, said that crude stocks in the U.S. - the world's largest oil consumer - rose by 2.5m barrels during the week ending May 16. Investors will also be watching the Energy Information Administration's report on U.S. government oil stocks later this Wednesday. A source in the industry said that Kazakhstan's oil output has risen by 2% since May. This is a significant increase, which defies the pressure of OPEC+ to reduce Kazakhstan's production. (Reporting and editing by Christian Schmollinger in Houston, Georgina McCartney from Houston)
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South Korea pledges support to biopharmaceutical and auto sectors in the face of US tariffs
The South Korean government announced on Wednesday that it would increase support for export industries including biopharmaceutical, auto, and the biopharmaceutical sectors. These sectors are expected to suffer from U.S. President Donald Trump’s tariffs. In a press release, the government said that it would prepare new measures for its biopharmaceutical firms as soon as Trump's tariffs in this sector are known. Trump signed an Executive Order earlier this month to reduce the time required for approval of pharmaceutical plants within the United States. This move is part new regulations designed to encourage domestic production, following Trump's probes of pharmaceutical imports to put tariffs on that sector. In 2024, South Korea's pharmaceutical exports will amount to $9.59 billion. This represents just 1.4% its total exports. Yet, the United States was the largest market for the country's exports, accounting for 16%. The government also said that it would prepare additional support measures if needed to complement the earlier packages announced by last month in order to help other industries, such as automakers or chipmakers and steel producers, cope with tariffs. Seoul, after a second round at ministerial level last week, is now holding technical discussions on a working-level with Washington. It seeks to exempt all tariffs through a comprehensive trade package that will be crafted by early July. South Korea's exports surprised many last month. They were buoyed by a strong demand for semiconductors in spite of the U.S. trade tariffs. However, there are signs global trade tensions may be affecting its important auto sector. (Reporting and editing by Ed Davies.)
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Argentina approves $2.5 bln Rio Tinto lithium mining project
The Argentine government approved on Tuesday a $2.5billion lithium mining project of Anglo-Australian Rio Tinto. This is the first mining project to be approved under a newly introduced investment incentive program. Daniel Gonzalez, the secretary for mining and energy coordination in Argentina, announced the approval of Rio Tinto’s Rincon project in northern Salta Province under the RIGI scheme at a press conference in Buenos Aires. The mining industry in Argentina has expressed concern over the delays in the approval of seven projects that have been submitted to the government after the RIGI programme was launched nine-months ago. Roberto Cacciola of the CAEM mining chamber in Argentina said at the conference: "We're grateful because there was a lot of anxiety about what was happening to the mining RIGIs." This was major news. The libertarian government of President Javier Milei is looking to boost South America's mining industry to bring in foreign currency that the country desperately needs and to maintain economic stability, as it faces high inflation rates. Argentina is the No.4 lithium supplier in the world. The world's No.4 lithium supplier, Argentina forms a "triangle" with Chile and Bolivia that holds the largest reserves of this white metal. It is used in electronic devices, electric vehicles and key technologies. South America also exports silver and gold, and there are major copper projects under construction. However, none of them is currently in production. The RIGI program also included applications from McEwen Copper, a Canadian company, and Posco of South Korea. Lucila Sigal, Brendan O'Boyle, and Natalia Siniawski edited the report.
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Motorbike killers kill two top aides of Mexico City Mayor
On Tuesday, two top aides to Mexico City Mayor Clara Brugada died after being shot by gunmen riding a motorcycle in an attack during the daytime in the city centre. According to a city statement, the victims were Ximena Gzman, the private secretary of the mayor, and Jose Munoz a Brugada adviser. An official with the federal prosecutor’s office confirmed that initial reports suggested Guzman was driving to work when she stopped in a busy street of downtown Mexico City to pick her colleague up. Munoz was shot in the street by two motorbike riders. Guzman was killed by the attackers who fired four shots into her vehicle. The motive of the attack has not been revealed by authorities, but security experts believe it was a crime-related hit. Assassinations in Mexico's capital have shocked the city, which is widely seen as a place of relative safety amid a violent country. In many parts of Mexico political violence is common. Scores of local politicians have been killed in assassinations usually tied to drug cartels trying to exert their influence. Brugada, visibly upset by the death of Ximena (Jose) and Pepe, with whom she had shared many dreams and struggles for years. She thanked Mexican president Claudia Sheinbaum, and her cabinet, for their support and co-operation since the attack. Sheinbaum was a former Mexico City mayor. Sheinbaum stated, "It's a terrible incident and we will give the mayor all the help he needs." Brugada said that those responsible for the murder would not be left unpunished. A government official in Mexico City said that she was not in her car at the time of the attack. Local media published photos of a black Audi that had four bullet holes on the front windshield and a sheet covering a body. Another body was covered by a white sheet. Police taped the area off so that forensic experts could examine the scene. David Saucedo is a specialist in public security. He said that the message was sent by drug traffickers to Clara. He said that groups affected by drug seizures had previously attacked the authorities of the capital. Omar Garcia Harfuch was wounded in 2020, when he was the chief of police for Mexico City. He is now the minister for federal security. Two of his bodyguards were also killed. He blamed the Jalisco Cartel, one of the most powerful drug cartels in the country, for the attack.
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James Hardie's annual profit for fibre cement fell by 9%
James Hardie Industries (the world's biggest fibre cement manufacturer) reported a 9% decline in annual profits on Wednesday. This was due to a poorer performance in its Asia Pacific division, coupled with a slight drop in North American net sales. James Hardie, based in Dublin, saw its annual net sales drop by 1% as lower volumes in North America & Asia Pacific offset gains in average selling prices in all three regions. North American fibre cement sales fell 1% in the past year as a 3% decline in volume due to market weakness overshadowed gains from an annual price increase. James Hardie has reported an adjusted annual net income of $644.33 million. This is up from $707.5 millions a year earlier and above its forecast for the full year of at least 635 million. The estimate was slightly higher than the Visible Alpha consensus of $643.66 million. The company has not provided an adjusted net profit outlook for fiscal year 2026. However, it said that its adjusted total earnings before interest taxes, depreciation, and amortization will be up in the low single-digits by next year. The company stated that "more recent macroeconomic uncertainty may have further impacted the cost of construction, and weighed on consumer sentiment. This could influence demand."
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Iran and the U.S. face each other without a Plan B when nuclear redlines collide
Three Iranian sources stated on Tuesday that the clerical leaders lack a clear plan in case efforts to settle a decades-long conflict fail. Sources said that if negotiations fail due to clashing redlines, Iran could turn to China or Russia as "Plan B". However, with Beijing engaged in a trade war with Washington, and Moscow's war in Ukraine distracting it, Tehran's back-up plan seems shaky. "Plan B" is to continue with the strategy prior to the start of the talks. Iran will not escalate tensions and is prepared to defend itself, a senior Iranian official stated. The strategy includes strengthening relations with allies such as Russia and China. Ayatollah Ayatollah Khamenei, Iran's supreme leader, rejected the U.S. demand to stop uranium enrichment on Tuesday as "excessive" and "outrageous", warning that talks would not produce results. Multiple obstacles remain after four rounds of negotiations aimed at curbing Iran’s nuclear program in exchange for sanctions relief. Tehran will not ship its entire stockpile of highly enriched Uranium abroad, or even engage in talks about its ballistic missile program. This is according to two Iranian officials and an European diplomat. A lack of trust between the two sides, and Donald Trump's decision in 2015 to withdraw from an accord with major world powers, has made it more important for Iran to get guarantees that Washington won't renege on any future agreement. Iran's clerical leadership is facing a number of challenges - including energy and water shortages; a falling currency; military losses in the region and fears that Israel will attack its nuclear sites. These are all made worse by Trump's policies. The sources stated that with Trump's rapid revival of his "maximum-pressure" campaign against Tehran, which includes tightened sanctions, military threats and other measures, Iran's leaders "have no better option" but to sign a new agreement in order to avoid economic chaos at home, which could threaten their rule. The Islamic Republic has been exposed to anger by the public after protests against social repression, economic hardship and harsh crackdowns. Iran's economy will not recover without lifting the sanctions that prevent free oil sales, and allowing access to funds. The second official said, as did others, due to the sensitive nature of this issue. The Iranian Foreign Ministry was not available to comment immediately. A THORNY TRAIL Wendy Sherman, former U.S. The former U.S. Undersecretary of Political Affairs, who led the U.S. negotiation team that achieved the 2015 agreement between Tehran and six major world powers, stated that it was impossible to persuade Tehran to "dismantle their nuclear programme and to give up on their enrichment despite that being ideal". She said: "That means that they will reach an impasse and that we could face war. I don't believe, quite frankly that President Trump is looking forward to that because he campaigned for a peace-oriented president." Even if the enrichment dispute narrows, lifting of sanctions is still fraught. The U.S. favors gradual removal of nuclear-related restrictions, while Tehran insists on immediate removal. Since 2018, sanctions have been imposed on dozens of Iranian institutions that are vital to the country's economy. These include its central bank, national oil company and other important Iranian institutions. Sherman, when asked what Iran would do if the talks failed, said that Tehran "would continue to circumvent sanctions, and sell oil primarily to China, India, and perhaps others". China has been Iran's main oil buyer, despite sanctions. This has helped to stave off the economic collapse. However, Trump's increased pressure on Chinese trade companies and tankers could threaten these exports. Analysts warn of the limits to China and Russia's assistance. China may insist on lower prices for Iranian oil as the global demand for oil weakens. Beijing and Moscow cannot protect Iran from unilateral U.S. or EU sanctions if talks fail - something both Tehran and Washington are hoping to avoid. France, Britain, and Germany have warned that they will reimpose U.N. Sanctions if a deal is not reached quickly, despite the fact that they are not involved in the U.S. Iran talks. According to the U.N. Resolution on the 2015 Nuclear Pact, the E3 has until October 18th to activate the "snapback" mechanism before the resolution expires. Diplomats and an E3 document that was seen by may have to do this if a deal is not reached by August. Diplomats warn getting a deal by then will mean, at best, a political framework similar to 2013 where both sides make some immediate concessions, giving time for more detailed negotiations. A senior European official stated that "there is no reason" to believe it would take less time in comparison with the 18-month period of 2013. This is especially true when you consider the fact that the parameters and geopolitical environment are more complex now. (Written by Parisa hafezi and John Irish, edited by Stephen Coates).
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Investors weigh US fiscal concerns as stocks fall and Treasury yields rise
On Tuesday, major stock indexes declined while yields on longer-dated U.S. Treasury bonds increased. Investors were focused on U.S. financial concerns as Congress discussed a bill to cut taxes. The S&P 500 Snapped a six-day Streak of gains The U.S. president Donald Trump tried to get his fellow Republicans to support the bill. However, he struggled to persuade a few holdouts. This package would, among other things, extend his 2017 tax cuts. Investors are concerned that the bill could lead to a higher budget deficit in the United States than expected. Moody's Investors Service lowered the U.S. Credit Rating late Friday night, causing investors to worry about the debt burden of the country. "With the Republican Bill still in the air, it's just enough to make people a bit more cautious, and maybe use this recent rally to trim a bit of their portfolio," said Rick Meckler. The Dow Jones Industrial Average dropped 114.83 or 0.27% to 42,677.24. The S&P500 fell 23.14 points or 0.39% to 5,940.46 while the Nasdaq Composite dropped 72.75 points or 0.38% to 19,142.71. Meckler added that investors are also reevaluating the recent rally, and taking into consideration the possible fallout of the changes in U.S. Tariff Policy. Home Depot shares closed down 0.6% despite the fact that Wall Street expectations for first-quarter revenue were exceeded. The MSCI index of global stocks fell by 0.77 points or 0.09% to 816.72. European stocks closed at nine-week highs with telecom and utilities companies leading the gains. The pan-European STOXX 600 rose by 0.73%. The yields on longer-dated U.S. Treasury bonds have risen amid U.S. financial concerns. The 10-year benchmark yield in the United States rose by 0.2 basis points, to 4.477%. The 30-year bond rate rose 2.3 basis points to 4.965%. In intraday trading on Monday, it reached 5.037%, its highest level since November 2023. The yields of Japanese government bonds with a super-long maturity date reached all-time records on Tuesday. This was a result of a disappointing auction of securities with a 20-year maturity. The Japanese yield on the 20-year bond jumped up to 15 basis points, reaching 2.555%. This is its highest level since 2000. And, for the 30-year bond, it reached a new record of 3.14%. Dollar fell again due to more cautious comments by Federal Reserve officials about the economy. Alberto Musalem, President of the St. Louis Federal Reserve Bank, said that despite recent ease in U.S. China trade tensions the labor market is likely to weaken, and prices are expected to rise. By the end of the year 2025, traders expect the Fed to cut rates by at least 25 basis points. The dollar dropped against the yen and reached a two-week low at 144.095 yen. It then traded down 0.2% to 144.495, slipping in five out of the six sessions. The Aussie Dollar was down last 0.6% to US$0.6416, after the Reserve Bank of Australia lowered benchmark interest rates by a further 25 basis points. In Canada, inflation eased in April to 1.7%, which was higher than the 1.6% economists expected. The oil price has remained stable amid the uncertainty surrounding U.S.-Iran talks and Russia-Ukraine negotiations. Brent futures fell 16 cents or 0.2% to settle at $65 a barrel. Meanwhile, U.S. West Texas Intermediate crude (WTI), which is a blend of U.S. West Texas Intermediate and West Texas Intermediate, dropped 13 cents or 0.2% to settle at $60.56. The dollar continued to weaken, and gold prices increased by more than 1%. Spot gold increased 1.86%, to $3288.96 per ounce.
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US to declare Biden fuel efficiency rules beyond legal authority
Automakers said that the U.S. Transportation Department will declare that the fuel economy regulations issued by then-President Joe Biden, which included electric vehicles when setting the rules exceeded the legal authority of the government. Sean Duffy, Transportation Secretary, said that the National Highway Traffic Safety Administration of the Department submitted to the White House on Friday its interpretive rule "Resetting Corporate Average Fuel Economy Program". He said that the previous administration "illegally" used CAFE standards to impose a mandate for electric vehicles, which drove up car prices. The reduction in fuel efficiency requirements could be achieved by removing EVs as a factor for calculating credits and regulatory mandates. NHTSA announced in June that it will increase CAFE standards for light duty vehicles to approximately 50.4 miles per gallon (4.67 grams per 100 km) from 39.1 miles per gallon currently. Last year, 120 Republican legislators said that NHTSA overstepped its authority when it adopted fuel economy standards. "These standards effectively mandate EVs and at the same force the internal combustion engines out of the marketplace." The lawmakers stated that the agency "accounted EVs in their regulatory baseline and factored this baseline into their determination of maximum achievable CAFE Standards." House Republicans proposed last week to kill the EV credit and repeal fuel efficiency regulations designed to encourage automakers into producing more zero-emission cars as part of a broader tax reform bill. The federal law requires NHTSA set CAFE standards to the maximum possible level. The Environmental Protection Agency announced that it would begin the effort to reverse Biden's parallel vehicle emission rules, which would force automakers into building a growing number of EVs. However, the agency has not yet begun to rescind California’s legal authority to enforce its 2035 EV regulations. The EPA also plans to reconsider the rules that award credits for vehicles with "start-stop" technologies, which are found in about half of all new cars. NHTSA stated last year that the rule would cut gasoline consumption by 64 billion gallon and emissions by 659 millions metric tons. (Reporting and editing by David Shepardson, Stephen Coates, Chris Reese and Aurora Ellis).
Venezuelan minister: US detainee is handed to Trump's envoy at Antigua
In a Tuesday message, Venezuelan Information Minister Freddy Nazareth Nanez confirmed that a U.S. national who was detained in Venezuela had been handed over to Richard Grenell - an envoy for U.S. president Donald Trump - on the Caribbean Island of Antigua.
Nanez provided the information when asked whether a post made by far-right U.S. activists Laura Loomer, in which they named the detained American Air Force veteran Joe St. Clair as well as stating that he was on his way to the United States along with Grenell, was true.
"Correct," Nanez responded.
The U.S. State Department and the White House did not respond immediately to a comment request.
Bloomberg reported on Tuesday morning, citing an unnamed single source, that Grenell was in Antigua meeting with representatives of Nicolas Maduro to negotiate the release at least one U.S. prisoner.
News outlet said that the U.S. would extend by 60 days the wind-down period for the license that allows U.S. Oil Company Chevron to work in the country. The license was due to expire on the 27th of May.
Two sources confirmed that Grenell met with Jorge Rodriguez the head of Venezuela’s ruling party-allied parliament and offered Grenell the extension. Grenell would have to get approval from the U.S. Treasury Department as well as the State Department.
Treasury did not respond immediately to a comment request about the potential extension.
Grenell returned to the United States in January after meeting Maduro with six Americans who were held in Venezuela. Vivian Sequera reported from Caracas, and Marianna Pararaga reported from Houston. Additional reporting was provided by Daphne Psaledakis in Washington and Timothy Gardner. Julia Symmes Cobb wrote the article. Sandra Maler edited it.
(source: Reuters)