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Administration sources claim that the US will allow waivers on Iran oil to expire
Two administration officials said on Tuesday that the Trump administration would allow a waiver of 30 days on sanctions against Iranian oil on sea to expire this week. The U.S. has imposed a blockade for shipments coming from Iranian ports. One official said that the move was a sign of "Treasury going full force on Economic Fury" against Iran. This is an apparent reference Operation Epic Fury - the U.S. led military campaign against Iran. Trump has said for years that it will apply "maximum" pressure on Iran regarding its nuclear program and its support of militants in the Middle East. However, sanctioned oil continues to reach China. Treasury Secretary Scott Bessent stated last month that the waiver, which was issued by the Treasury Department 'on March 20', allowed 140 million barrels to reach global markets, and helped ease?pressure on energy during?the war against Iran. The waiver expires on April 19. The decision to not renew waivers on oil comes after lawmakers of both parties criticized the administration for temporarily easing sanctions on Tehran, and Moscow while the U.S. is at war with Iran, and Moscow is continuing its war against Ukraine. The sources also said that the U.S. did not renew its waiver for Russian oil on the sea, which expired on Saturday. One?source said that Washington can impose a variety of sanctions on institutions engaged in illicit activities such as buying Iranian oil. These include'secondary sanctions'. The person said that any interaction with Tehran would trigger additional sanctions, given the recent snapback of U.N. Sanctions on Iran and the history of Iran's attempts to conceal behind legitimate activities to "conduct illicit conduct". Treasury Secretary Scott Bessent earlier told reporters that the U.S. Blockade of Strait of Hormuz will ensure that no Chinese or other?ships? would be allowed to pass. They won't be able to get oil. They can get their oil. Bessent added that China was buying Iranian oil at a rate of about 8% per year. (Reporting and editing by Chris Reese, Nia Williams and Timothy Gardner)
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Gold gains 2% as dollar weakens and hopes for US-Iran talks resume
As the U.S. Dollar weakened on Tuesday, gold prices rose 2%. Meanwhile, hopes for a resumption of?U.S.-Iran talks also helped to support prices by easing inflation fears. By 1:34 pm, spot gold had risen 2% to $4,831.78 an ounce. ET (1734 GMT). U.S. Gold futures closed 1.7% higher at 4,850.10. U.S. president Donald Trump said that talks to end the Iran War could resume in Pakistan within the next two day after the weekend's collapsed negotiations led Washington to impose an Iranian port blockade. The?direction' of the gold price will be determined by the outcome of the Pakistani talks and the progress made in the lead-up to the weekend. Bob?Haberkorn is a senior market analyst at RJO Futures. He said that if we hear positive news about Pakistan, metals are likely to continue rising. He added that "lower dollar and lower oil are helping gold right now, because when the war began, there was an rush for cash, as well as a concern over being able o accumulate energy supplies." Oil prices also fell as the dollar weakened. The weaker dollar makes the greenback price of bullion more affordable to holders of other currencies. The data showed that U.S. producers prices increased less than expected as the cost for services remained unchanged in March, but the surging energy costs due to the war with Iran were causing inflation pressures. Gold, despite its role as a hedge against inflation, becomes less attractive when rates are higher because it does not offer a yield. The traders are now pricing a 33% chance of a U.S. interest rate?cut in this year, as opposed to expectations for two cuts prior to the war. Analysts at Commerzbank stated that the price of gold is unlikely to drop much more as long as the market doesn't begin to seriously consider an increase in interest rates by the U.S. Federal Reserve. Silver spot rose by 5.2%, to $79.48 an ounce. Platinum gained 1.3%, to $2,096.91. Palladium increased 0.7%, to $1,585.21. (Reporting and editing by Keith Weir in Bengaluru)
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Edun, a Nigerian economist, says that developing nations require more support from the IMF and World Bank
Wale Edun is the Nigerian Finance Minister, and the Chair of the G-24 coalition of developing nations. He said that multilateral institutions should do more to help vulnerable countries weather the economic shocks caused by the Middle East war. Edun stated during the briefing for the G-24 at the IMF/World Bank Spring Meetings in Washington that "we would like them do more. We definitely like them provide, especially at this time additional liquidity risk management instruments that lower the cost of funding." The G-24 is a group of countries that coordinates the stances taken by developing nations on issues related to monetary policy and finance for development. Edun stated that due to the cuts in development assistance, international aid and the costs of repaying debts, net financial flows are currently negative. He also said that the tightening of?financial?conditions and the increased risk aversion on capital markets as a result of the war in the Middle East, could reduce the flow private capital into emerging countries. This meant that the support from multilateral institutions is crucial for many nations. Edun announced on Monday that Nigeria will seek "stronger international financial assistance this week" as the Iran War raises fuel prices at home and complicates economic reforms. He said that it was important that government assistance for vulnerable citizens be "targeted" and "temporary". Nigeria for decades paid expensive fuel subsidies, which the current government has removed in recent years. Edun stated that it was important to avoid a return of generalized subsidies, and a relapse in policies that had not been successful. He said the developing world should focus on domestic revenue mobilization. Africa should boost its internal trade in order to counteract changes in the global trading system.
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Carney promises to reduce the cost of living for Canadians with new majority government and suspends fuel taxes
Mark Carney, the Liberal Party's newly elected parliamentary majority, said that he will focus on reducing Canada's?cost-of-living, addressing a housing shortage and building major infrastructure projects to help Canada's economic independence. Carney, whose Liberal Party won three special elections in Canada on Monday to cap off a remarkable few months, said that he accepts Canada's support with "humility, determination, and a clear comprehension of what this moment requires." Carney's first Liberal majority government in Canada since 2019, should give him more freedom to pass legislation that he believes is necessary for the country to thrive amidst "a divided and dangerous world," which includes the uncertainty created by U.S. president Donald Trump and the ongoing conflict in the Middle East. Carney has tried to reduce Canada's dependence on the United States. He said, "We must fundamentally change?our economy in order to become stronger, more autonomous, and more prosperous," at a press conference on Tuesday to announce a temporary suspension?of a fuel tax. He said that the measure would lower Canadians' gas prices by 10 cents a litre for regular gasoline, and by 4 cents a litre for diesel. He said that the new Canadian government was relentlessly focused to make life more affordable for Canadians. Carney's Liberals have won three special election in Ontario and Quebec. This gives him a 343 seat majority in the House of Commons. Carney said he did not plan to reshuffle his Cabinet before the summer recess of Parliament or call an early election. This was in response to criticisms from political opponents who claimed that Carney's Liberals were undermining his majority government because five legislators had recently defected to his party. Pierre Poilievre, the Conservative leader,?took it to X to express his dissatisfaction with both the process and result. "The Carney Liberals didn't win a majority through a general or today's... by-elections." It was achieved through secret deals made with politicians who had betrayed those who voted them. Carney responded that Canada is a parliamentary democratic country and Canadians elect local representatives. Elizabeth McCallion is an assistant professor of political sciences at the University of Toronto. She said Carney made the decision to reduce the fuel tax days after the Conservatives had argued in favor of it. She said that this would make it harder for opposition parties to be antagonistic and take on the government.
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Administration sources claim that the US will allow the waiver on Iranian oil to expire
Two administration officials said on Tuesday that the Trump administration would allow a 30-day waiver on sanctions against Iranian oil at sea to expire later this week. The U.S. has imposed a blockade of shipments from Iranian port. Treasury Secretary Scott Bessent said last month that the waiver issued by the Treasury Department on March 20 allowed 140 million barrels to reach the global market and relieved pressure on energy supply during the Iran war. The waiver will expire on April 19. After lawmakers of both parties criticised the administration's decision to temporarily relax sanctions on Moscow and Tehran, while Israel and the U.S. are at war with Iran, and Moscow is continuing its war against Ukraine, the move was made. One of the?U.S. officials stated that Washington has a range of?authorities?it can use against institutions who buy Iranian oil. This includes secondary?sanctions. "In addition to the snapback of U.N. "In addition, with the snapback of?U.N. sanctions on Iran and its history trying to 'hide behind seemingly legal activity?to carry out its?illicit behavior, any activity that Tehran engages in could trigger additional sanctions," said the source. Reporting by Timothy Gardner, Editing by Chris Reese
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Bessent, US Treasury's Bessent, says China is an unreliable partner for hoarding oil in wartime.
U.S. Treasury secretary Scott Bessent said on Tuesday that China was an unreliable?partner in the Middle East War?by hoarding supplies of oil and limiting the exports of?some goods. This is similar to its actions during the COVID-19 Pandemic. Bessent said he spoke with Chinese officials on the matter. He avoided a question on whether the dispute will derail U.S. president Donald Trump's plans to visit Beijing mid-May. However, he said that Trump and Chinese President Xi Jinping have a good working relationship. "I believe the message of this visit is one of stability. "We've enjoyed great stability in our relationship since last summer. That comes from the top down," said he. "I think communication is key." Bessent criticized China for its actions in the U.S. - Israel war on Iran. This caused oil prices to rise by 50% and caused supply chain disruptions. Bessent stated that China has proven to be an unreliable partner in the last five years. "China was unreliable three times during COVID when they hoarded health products and secondly on rare earth," Bessent referred to Beijing's threats to restrict?rare Earth exports. He said that the United States was now stockpiling oil instead of helping to ease the global shortage of oil caused by Iran's closing of the Strait of Hormuz which transports 20% of all the world's crude. China had a strategic oil reserve roughly equal to the size of all the reserves held by the International Energy Agency's 32 members, yet it continued to buy oil. Bessent stated that China continued to buy oil and hoarded it, as well as cutting off exports. The Chinese Embassy in Washington did not immediately comment. On Monday, the International Monetary Fund (IMF), World Bank and International Energy Agency (IEA) urged all countries to?avoid hoarding of energy supplies and imposing import controls that would worsen the shock they call the 'global energy markets biggest ever shock. The IMF, World Bank and International Energy Agency did not name specific countries. After weekend talks on ending the conflict in Islamabad broke down, the U.S. military began blocking ships from leaving Iran's port on Monday. Tehran also threatened to retaliate by?blocking ports of its Gulf neighbors. Oil prices have risen back to $100 per barrel with no signs of a quick reopening. Bessent had earlier told reporters that the blockade would ensure that Chinese ships and?others wouldn't be allowed to cross the strait. "So, they won't be able get their oil. They can still get oil. Bessent added that China was buying Iranian oil at a rate of about 8% per year, and more than 90%. Reporting by Andrea Shalal, Editing by Katharine Jackoll and Andrea Ricci
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French Finance Ministry raises inflation estimate, trims growth forecast
The French Finance Ministry has lowered its 2026 growth forecast and raised its inflation estimate to reflect the impact of the Middle East conflict. According to the ministry, the euro zone's 2nd largest economy will now grow by 0.9% in 2014 instead of the 1.0% previously expected. Inflation is expected to average 1.9%, instead of 1.3%, due to the higher energy import prices. The Finance Minister Roland Lescure stated that the current crisis will have "a modest impact" on the growth, citing momentum carried over from last years, and inflationary effects will be "limited" due to France's heavy dependence on nuclear energy. According to the ministry, its projections assume that oil prices will stay?at $100 per barrel until May's end before gradually decreasing. The government has reiterated that despite a less favourable economic outlook it is "committed" to cutting the budget deficit of the public sector down to 3% by 2029 from 5.1% as recently as '2025. The ministry stated that a rise in global bond rates since the conflict began 'has increased borrowing costs. This has added an estimated 4 billion euros this year to government financing expenses. (Reporting and editing by William Maclean)
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UN agency: Fertiliser shortages caused by the war in Iran are a major concern for developing countries.
The?head of United Nations'?trade agency, said Tuesday that the shortages of fertilisers caused by the Iran war is a?priority for developing countries. Gains from higher oil and gas prices are unlikely to last long for producers in the developing world. The'more immediate issue' is fertiliser because it affects food safety and food is the foundation of stability, said Pamela Coke Hamilton, executive director at the International Trade Centre. She added that oil and natural gas can be obtained from other sources so that the situation is "not as dire", even if the price increases are a problem. Coke-Hamilton's agency, which focuses on promoting international trade, has noted that about a third of global urea passes through the Strait of Hormuz. Iran and the United States have blocked the Strait. In an interview, she said: "There are significant issues in regards to the availability of fertilisers. There's also a deadline for agriculture as far as ensuring that you have enough for your next harvest. This is something we miss now." In an interview, she said: On Monday, the U.N. announced that it was launching a diplomatic campaign to support a U.N. proposal aimed at ensuring safe passage of fertilisers through the Strait of Hormuz. ITC stated that the dependence on Gulf-produced nitrogen fertilisers is highest in several Asian developing countries such as Kenya and Uganda, South Africa and Sri Lanka, and Kenya. ITC stated that shortages typically lead to lower yields and reduced fertiliser usage, not changes in harvesting times. This effect is more pronounced in areas such as Sub-Saharan Africa?and South Asia?where production is more dependent upon rains?, planting windows?are narrower?and farmers?are more sensitive to input costs?. ITC stated that alternative suppliers, especially in North Africa, can help fill the gaps.?Egypt holds a potential of $1.6 billion in untapped exports, and Algeria another $1.3 billion. ITC stated that countries like Nigeria, Kazakhstan and Brazil may benefit from increased revenues. However, these gains would be limited, as all but Kazakhstan were net importers. The ITC stated that while higher natural gas prices could benefit countries like Algeria, Malaysia and Turkmenistan, short-term supply expansion is unlikely to occur. Reporting by Philip Blenkinsop, Editing by Alexandra Hudson
US extends waiver to Lukoil fuel stations in Russia
The Trump administration has extended the waiver that allows Lukoil service stations to operate outside of Russia until late October. This is a small exception to sanctions imposed by the U.S. last year in order to reduce revenues supporting Moscow’s war in Ukraine.
Treasury Department announced on its website on Tuesday that the waiver for 2,000 stations in Europe, Central Asia and the Middle East, as well as the Americas, has been extended to October 29. In October, President Donald Trump imposed sanctions on Lukoil and Rosneft - Russia's largest oil companies - causing interest among potential buyers for the estimated $22 billion worth of Lukoil international assets. Lukoil operates about 200 branded gas stations across New Jersey, Pennsylvania and New York. It is one of the largest motor fuel retailers in Bulgaria and Moldova and operates more than 600 stations in Turkey and more than 300 in Romania.
The Treasury issued a license that allowed certain transactions with Lukoil refinery entities in Bulgaria, such as?Lukoil neftohim Burgas jsc.
(source: Reuters)