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Bessent: The U.S. will not renew waivers for Iranian oil and Russian oil
Treasury Secretary Scott Bessent said to reporters that the United States would not be renewing waivers which allowed some Iranian and Russian oil to be purchased without facing U.S. sanctions. Reports on Tuesday stated that Washington will not renew the 30-day waiver for sanctions against 'Iranian Oil at Sea' that expires in this week and that a similar waiver would expire on sanctions against Russian oil over the weekend. We will not renew the general license for?Russian oil and we won't be renewing the?general?license for Iranian oil. This was oil which was in the water before March 11. All of that oil has been used", Bessent told a White House press briefing. The Trump administration has ceased to try to lower global energy prices by using sanctions waivers to increase oil supply. Bessent stated a month ago that the waiver issued by the Treasury Department on March 20 allowed 140 million barrels of oil to be sold globally and relieved pressure during the war. The waiver expires on April 19, 2019. Reporting by Steve Holland, Humeyra Pamuk and David Ljunggren; editing by David Ljunggren
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Gold prices fall as attention turns to US-Iran developments
Investors analyzed the latest signals regarding the 'U.S.-Iran' situation and their potential impact on interest rates. As of 1:31 pm, spot gold was down by 0.9% to $4,798.89 an ounce. ET (1731 GMT) after reaching its highest level since March 18, earlier in the day. U.S. Gold futures ended the session 0.5% lower, at $4.823.60. Kitco Metals' senior analyst Jim Wyckoff said, "Gold and silver are only experiencing some mild and normal profit-taking following overnight highs." Gold prices are rising on the back of increased risk appetite, and a selling off during periods of risk aversion. This is contrary to gold's role as a safe haven. He added that traders are "currently focused more on the implications and pressures of inflation" than tighter monetary policies. U.S. president Donald Trump declared that the war with Iran he started in conjunction with Israel was nearing its end, while the chief of the Pakistani army who is the mediator arrived in Tehran. As shipping restrictions continued through the Strait of Hormuz, oil prices rose. Transit through the waterway is still uncertain 45 days after the Revolutionary Guards of Iran declared the Strait closed. This is despite a 2-week ceasefire. Chicago Fed President Austan Goolsbee stated on Tuesday that the Federal Reserve could have to wait until 2027 before cutting interest rates, if the Iran War's prolonged high oil prices delay inflation's progress toward the 2% target set by the U.S. Central Bank. Markets currently predict a 32% chance of a U.S. interest rate cut in this year. Gold's appeal as an inflation hedge is diminished by higher interest rates. Silver fell by 0.2% at $79.40 an ounce. Platinum rose by 0.8% to 2,119.52. Palladium fell 1.1% to $1,570.10. Ashitha Shivprasad reported from Bengaluru, and Jan Harvey edited the story.
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Heavy rains reported to have killed at least 16 people in Hispaniola
According to civil protection and?local media?on Wednesday, days of torrential rain over northwest?Haiti have killed 16 people. Local newspaper Le Nouvelliste reported that at least 12 people died in floods in northern Haiti, including in Port-de-Paix and Saint-Louis du Nord, as well as Anse-a-Foleur. Listin Diario, a local newspaper in the Dominican Republic (which shares the Caribbean island Hispaniola, with Haiti), reported on Monday that four people were killed, including some who had been swept away by swollen riverbeds, and an infant girl who was killed when a wall fell onto her at home. The Dominican authorities reported on Monday that over 30,000 people had been forced to leave their homes. They also said the rains would intensify again this weekend. Puerto Rico, a U.S. Authorities in Puerto Rico warned residents to avoid the flooded roads as rain is expected to continue until?the afternoon. A'stampede' at the UNESCO-listed Laferriere Citadel in northern Haiti, which is a World Heritage Site, had killed 25 people just days before. People began rushing onto the site as rain started falling during an annual event. (Reporting from Sarah Morland).
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IMF chief: 12 or more countries are seeking loans to deal with Middle East war energy shock
The International Monetary Fund (IMF) expects that at least 12 countries will?seek out new loan programs? to deal with the surging 'energy prices? and supply chain disruptions caused by the Middle East?war?,? the head of global crisis lender, said on Wednesday. Kristalina Georgeeva, IMF's Managing Director, warned of further supply disruptions if the Strait of Hormuz is closed even if it ends quickly. She also urged nations to reduce fuel consumption. At a press briefing during the IMF/World Bank spring meetings, Georgieva reiterated her estimation that the disruptions caused by the war would trigger a new demand for financial support of $20 to $50 billion. This could include new loans and the augmentation of 39 existing country finance programs of the global lender. She did not mention specific countries who have requested assistance, but she said that the IMF is?not currently examining an augmentation to Egypt's 8 billion loan program in spite of the war's effect on its economy. Georgieva expressed concern about the breakdown in supply chains, particularly for Asian countries that depend on Gulf oil, natural gases, naphtha and helium, as well as fertilizer, other inputs, and other inputs. She stated that such disruptions "will not disappear overnight, even if war ends tomorrow. Why? A tanker, which is a "slow-moving vessel", would take forty days to reach Fiji. We need to prepare for the fact that the impact of the supply disruptions will be greater in the coming weeks. IMF has already stated that the global economic conditions have worsened beyond what was projected in its World Economic Outlook, which was updated on Tuesday. The IMF's forecast of 3.1% growth for 2026 is based on the end of the conflict as well as a drop in oil prices. Pierre-Olivier Gourinchas is the IMF chief economist. He said that the global economy had "drifted" beyond the forecast and was heading towards a more negative scenario, as outlined in the IMF World Economic Outlook. The IMF predicts that growth will fall to 2.5% by 2026, while oil prices are expected to average around $100 a barrel. In the worst case, "severe scenarios"?of a longer and deeper conflict, global economic growth drops to 2%, bringing it to the edge of global recession. Georgieva stated that more shortages are looming and countries should take steps to conserve energy. She also suggested creating incentives to reduce oil intensity in their economies. For example, temporarily freeing public transport. She reiterated the IMF's warnings that countries should not take untargeted measures such as energy subsidies in order to offset the impact on higher prices. IMF Fiscal Monitor released on Tuesday urged all countries to avoid subsidies, and instead provide temporary cash transfers that are targeted at the most vulnerable citizens, but do not mask higher fuel prices or stoke up demand. Rodrigo Valdes, Director of Fiscal Affairs at the IMF, said that broad fuel subsidies could do this and shift supplies away from poorer nations. He told a press conference, "If you try undoing a supply shock by trying?to prop up demand, you'll end up with even more inflation." The IMF has urged central banks to be vigilant and watch for signs of wage-price spirals, but to not tighten the monetary policy or cool the demand immediately. Georgieva stated that central banks should not rush to act if they have high credibility. "Wait and see what the conditions are. She added that central banks with less credibility in controlling inflation might need to take stronger steps, without naming any specific countries. (Reporting and editing by Andrea Shalal, David Lawder)
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Copper reaches six-week high amid hopes for new US-Iran Peace Talks
Prices of copper rose to a six-week high on Wednesday as optimism grew over the possibility of another round of talks between Iran and the United States to end the conflict. The benchmark copper price on the London Metal Exchange reached $13,392.5 per metric ton, its highest level since March 2. At 1605 GMT, it was down by 0.1% to $13,275 per ton. Copper prices have been pushed down by profit-taking, triggered in part by the stronger dollar. The dollar's rise makes metals priced in dollars more expensive for those who hold other currencies. Traders said that the mood and volume of industrial metals was buoyant. U.S. president Donald Trump stated on Tuesday that talks to end Iran war in Pakistan could resume within the next two day after the weekend's collapse led Washington to impose an Iranian port blockade. Britannia Global Markets stated in a report that "risk appetite has returned following a temporary ceasefire last week. This is reinforced by reports that 'Washington and Tehran will be looking to arrange a second round in the next few days. The Yangshan Copper Premium, which is a measure of China's appetite to import copper, highlights expectations of a stronger demand. It has risen 270% to $74 per ton since the end January, and is now at its highest level since June last. The Chinese industrial metals market will be able to gauge the demand for industrial metals based on data that is due later this week. The price of copper and nickel is influenced by concerns about sulphur shortages in the Middle East, which are used to process these metals. Middle East is responsible for 24% global sulphur. It's a by-product of oil and natural gas refining. Last year, its aluminium production accounted for nearly?7 millions tons or 9% global supplies. Aluminium prices are at a four-year high. Aluminium rose by 1.5%, to $3.615 per ton. Zinc rose by 1.7%, to $3.398, while lead climbed 1.6%, to $1.966. Tin fell 1.2%, to $49.700, and nickel slid 0.3%, to $18,150.
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Gold prices fall as attention turns to US-Iran developments
Investors analyzed the latest signals on the U.S.-Iran issue and how they might affect interest rates. As of 11:22 am, spot gold was down by 0.7% to $4,807.34 an ounce. ET (1522 GMT), having reached its highest level since March 18, earlier in the day. U.S. Gold futures dropped 0.4% to $4.830.60. Kitco Metals' senior analyst Jim Wyckoff said, "Gold and silver are only experiencing some mild and normal profit-taking following overnight highs." Gold prices are rising on the back of increased risk appetite, and a selling off during periods of risk aversion. This is contrary to gold's role as a safe haven. "Traders are focusing on the impact of tighter monetary policies and inflation pressures,"? he said. The U.S. president Donald Trump said that the war with Iran is close to being over. He told the world to prepare for "an amazing two days" as the chief of the Pakistani army, the mediator in the conflict, arrived in Tehran to try to prevent another conflict. Shipping through the Strait of Hormuz was 'constrained', and oil prices did not change much. The strait remains closed 45 days after the Revolutionary Guards of Iran declared it closed. Despite a two week ceasefire, the future of the transit is uncertain. Chicago Fed President Austan Goolsbee stated on Tuesday that the Federal Reserve may have to wait until 2027 before cutting interest rates, if a 'prolonged period of high oil prices' from the Iran War delays the inflation's progress toward the U.S. Central Bank's 2% target. Markets currently expect a rate cut in the U.S. this year. Gold's appeal as an inflation hedge is diminished by higher interest rates. Silver spot remained at $79.58 an ounce while platinum increased 0.2% to 2,108.79. Palladium fell 1.2% to $1,568.15. Ashitha Shivaprasad reported from Bengaluru, and Jan Harvey edited the story.
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Gold prices fall as attention turns to US-Iran developments
Gold fell on Wednesday, after reaching a peak of one month. Investors were assessing the latest signals regarding the U.S./Iran situation to determine what it could mean for interest rates. As of 8:47 am, spot gold was down by 0.6% to $4,809.15 an ounce. ET (1247 GMT), having reached its highest level since March 18, earlier in the day. U.S. gold futures fell 0.4% to $4831.60. Jim Wyckoff is a senior analyst with Kitco Metals. He said, "Gold and Silver are only experiencing some mild and normal profit-taking following overnight highs." Gold prices are rising on the back of a?improved appetite for risk and falling during periods of risk aversion, which is contrary to its traditional role as a?safe haven. He said that traders are more concerned with the impact of tighter monetary policy and inflation pressures. U.S. president Donald Trump said that talks with Iran could resume soon and lead to a deal. He told the world to be on the lookout for "an amazing two days", as U.S. forces who imposed a blockade stopped vessels from leaving Iranian ports. As shipping through the Strait of Hormuz was restricted, oil prices rose. The strait remains closed 45 days after the Revolutionary Guards of Iran declared it closed. Despite a two-week ceasefire, the future of the transit is uncertain. Chicago Fed President Austan Goolsbee stated on Tuesday that the Federal Reserve could have to wait until 2027 before reducing interest rates, if the high oil prices caused by the Iran War continue to delay the inflation's progress toward the 2% target set by the U.S. Central Bank. The market currently believes that there is a 31% probability of a rate cut in the U.S. this year. Gold's appeal as a hedge against inflation is diminished by higher interest rates. Silver spot fell by 1.2%, to $78.61 an ounce. Platinum dropped 0.1%, to $2,101.82. Palladium rose 0.3% to $1,591.60. Ashitha Shivprasad, Bengaluru reporting; Jan Harvey editing.
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IMF warns against large fuel subsidies in response to war-driven energy shock
In its Fiscal Monitor report, released on Wednesday, the International Monetary Fund stated that the war in the Middle East had intensified the strains already present in an already fragile fiscal situation. Higher interest rates and rising energy prices have already fueled calls for assistance from developing countries and emerging markets. Rodrigo Valdes is the new head of fiscal affairs at the IMF. He said that countries should avoid fuel subsidies in order to help their citizens cope with an oil shortage and a corresponding rise in energy prices. He said that targeted, temporary cash transfers would be the better option. We don't have any oil. "We don't have oil." "Energy needs to be more costly for everyone so that we can adjust and consume less," Valdes said in an interview. The IMF cut its growth forecast on Tuesday due to energy price spikes caused by war and disruptions in supply. It warned that the global economic system could be pushed to the 'edge of recession' if the conflict intensifies and oil prices remain above $100 per barrel until 2027. Valdes stated that "you can pass on (higher energy costs) and do other things to help." "It is a global shock, and if countries suppress price signals, the global price would be higher." It is very important to send price signals so that demand can be adjusted. Valdes stated that the impact of the war would be determined by the export controls, damage to the energy infrastructure, and the ability of other countries to increase oil production. He said that once conditions stabilized it was important to stay focused on the longer-term issues, as public debt increased, primarily due to permanent spending on entitlements or reduced revenues in many of the world's largest economies. According to the IMF’s Fiscal Monitor, global government debt will reach 93.9% in 2025. This is up two percentage points compared to 92% one year prior. It will also be expected to reach 100 percent by 2029. That’s a full year sooner than was predicted just a few months ago. The report stated that this would be the highest level of government debt since World War II. The report said that the government debt would continue to rise and could reach up to 102.3% GDP by 2031. The IMF also said that interest payments had also increased sharply. They will reach nearly 3% GDP by 2025, up 2% from four years ago. Valdes warned about emerging risks. He said that hedge funds were less able to "hold debt on the long term." The duration of debt has also decreased, which means that short-term rates are more easily transmitted to debt dynamics. In a blog that accompanied the report, the IMF noted other challenges, including higher security costs, spending on energy and climate change, and increasing interest rates at a time where revenues have not kept pace. The IMF warned that trade and financial fragmentation would further stifle growth and increase borrowing costs. Political instability could also undermine reforms and revenue collections. Financial conditions could be tightened quickly by sudden changes in the markets, such as in AI stocks. Valdes said that countries should begin working on fiscal consolidation as soon as the immediate crisis is resolved. He said that while some countries are taking the issue seriously, many others have not yet developed a clear plan. "We are not in a crisis... but the longer you delay, the greater the effort you will need and the greater the chance of a disorderly consolidating later." Reporting by Andrea Shalal Editing done by Shri Navaratnam
In April, Europe saw record-breaking jet inflows to Europe from the US
Data from Kpler & LSEG revealed that Europe was experiencing record-breaking inflows of Jet Fuel from the United States. The region is trying to replenish fuel supplies as a result of the Middle East's disruption.
Due to the U.S. and Israeli war against?Iran, the Strait of Hormuz has effectively been closed. This has prevented the Middle East from supplying Europe with nearly 75% of their?jet fuel, or about 375,000 barrels a day. According to a document viewed by, this has caused European airlines to call on the European Union (EU)?to take emergency measures including widespread airspace closings.
Based on vessels discharged or still due, the U.S. is expected to reach between 149,000 and 200,000 barrels a day in April. This already represents record levels based on data dating back to 2015 for LSEG, and 2017 for Kpler.
The EU does not specify how much oil should be in emergency reserves. According to the International Energy Agency (IEA), Spain is a net?exporter of jet fuel, while Britain is the largest consumer in the region and imports 65% of its demand. Stocks of jet fuel held independently in the Amsterdam-Rotterdam-Antwerp refining and storage ?hub stood at their lowest since March 2023 last week.
However, the U.S. has already reached record-breaking?export levels. In the week ending on April 3, the country shipped an estimated 442,000 barrels total of jet fuel, which is double the average 219,000 barrels last year, according to data from the Energy Information Administration.
The U.S. may be the world's largest consumer of jet-fuel, but exports to areas with worse fuel shortages like Europe and Asia are fetching "better" prices.
In a monthly report, the IEA stated that if European markets were unable to secure over 50% of the volumes lost in the Middle East by June, stocks would reach the critical 23-day level - at which physical shortages will begin.
(source: Reuters)