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Bessent: US Navy can escort ships in Strait of Hormuz alongside international coalition
The?U.S. The?U.S. Navy will escort ships?through the Strait of?Hormuz, possibly with an international alliance, when it's militarily feasible, U.S. Treasury Sec. Scott Bessent said in an interview with Sky News on Thursday. Bessent stated that he believed the US Navy would escort vessels through as soon as it was militarily possible. He said that the plan to escort ships would be implemented as soon as "the U.S. had complete control over the skies" and the Iranians' ability to rebuild their missiles was completely degraded. U.S., Israeli and Iranian strikes on Iran have escalated regional tensions. The response from Tehran has paralyzed shipping in the Strait of Hormuz and disrupted vital Middle East oil and gas supplies. Energy prices are also rising. Iran's Islamic Revolutionary Guard Corps has raised the stakes in the global economy by announcing that it will?block all oil shipments out of the Gulf until the U.S. There are in fact tankers coming through, Iranian tankers and I believe Chinese flag tankers. Bessent stated that we "know" they have not mined the Straits. Reporting by William James, Ismail Shakil and Caitlin webber; editing by David Ljunggren and Caitlin webber
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Oil reaches $100 per barrel; shares tumble after Gulf shipping attacks, Iran warns
Global?shares dropped on Thursday, as the attacks on oil tankers and the warnings of Iran?shattered the prospects of an impending de-escalation to the Middle East conflict. Oil prices rose around $100 per barrel, and inflation fears were stoked. Wall Street stock indexes fell, 'dragged down by the rising oil price and concerns over?the private credit market. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all dropped by about 1.2%. The STOXX600 pan-European equity benchmark fell 0.66%. The MSCI All-World Index fell by 1.2%. Brent crude futures rose as high as 10.4%, to $101.59 per barrel, before trimming their gains as concerns remained over whether the release of reserves would be sufficient to cushion the blow from the Middle East shock. Brent crude last traded just below $100 per barrel. U.S. crude futures last traded 8.7% higher, at $94.85 per barrel. Monica Guerra is the head of U.S. Policy at Morgan Stanley Wealth Management. She said that historically, geopolitically-driven equity volatility has been?short lived. If higher oil prices continue, however, "the Fed’s reaction function could become complicated, supporting a longer higher fed funds rate." IRAN WARNS MORE ATTACKS As STRIKES on TANKERS? In his first remarks after succeeding his father, Mojtaba Khmenei, the new Supreme Leader of Iran, said that Iran would avenge its martyrs' blood, close the Strait of Hormuz and attack U.S. military bases. Iraqi officials reported that two fuel tanks in Iraqi waters had been struck by Iranian boats laden with explosives. Meanwhile, an Iraqi official said to state media, "its oil ports have completely ceased operations." Rodrigo Catril is a senior FX Strategist at NAB. He said, "The market continues to be very concerned about what's happening in the Strait of Hormuz and the information we have received over the past 24 hours does not make for a good read." Iran had increased attacks on merchant vessels in the Strait of Hormuz. The number of ships that have been struck in this region since the fighting began has risen to at least 16 Tehran warned that oil could reach $200 per barrel. However, the U.S. Energy Secretary Chris Wright stated on Thursday that global oil prices will not reach this price. Inflation Risks The U.S. Consumer Price Index rose 0.3%, above the 0.2% rise in January. This was in line with expectations and higher than the 0.2% increase in January. The report was not considered particularly relevant, given that the Iran War has begun to fuel inflation. Globally, bond yields rose as the risk of rising inflation outweighed any considerations for safe havens. The yields on 10-year Treasury bills rose by 4.3 basis points, to 4.249%. They had risen 7 basis points overnight. The $2 trillion private credit markets were also a source of concern after Swiss private equity group Partners Group warned that default rates could more than double in the coming years. Morgan Stanley's share price fell by 4% following a similar action taken earlier in the month by Blackstone and BlackRock. Blackstone and BlackRock fell 3.8% and 2.3%, respectively. According to economists surveyed by, the U.S. Federal Reserve is expected to cut interest rates in June for the first time this year. Nearly 40% of economists polled by 'predict only one or no rate cuts this year. This is almost twice as many who predicted three or more. Investors on edge sought out the dollar's liquidity, while shunning currencies of countries which are net energy consumers. This includes Japan and most of Europe. The euro fell 0.4% to $1.1520. The dollar was slightly higher at 159.21 Japanese yen. Reporting by Lawrence Delevingne, Niket Nishant in London and Stella Qiu, Sydney; editing by Mark Potter and Kirby Donovan
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Brazil scraps diesel taxes, but imposes a levy on exports of oil after price spike
Brazil's government has scrapped diesel taxes and imposed a tax on oil exports. The move, which was made on Thursday, could affect the state-run Petrobras as it tries to ease the impact of recent global oil price spikes. The administration of President Luiz inacio da Silva said that the temporary measures will reduce the impact on local fuel prices caused by price swings resulting from the U.S./Israeli war against Iran. The South American nation cut the PIS federal tax and Cofins federal tax levied on diesel to zero. It also imposed a 12 percent tax on crude oil and a 50 percent levy on diesel shipments. Lula said at a Brasilia press conference to announce the new measures that "oil prices have gotten out of hand". Diesel prices are on the rise, posing a serious threat to Brazil's powerful agricultural sector. Producers who have to harvest a record soybean crop or plant corn cannot afford to put off their plans. Petrobras may not have raised local fuel prices but Brazil is still partially dependent on imported diesel. Distributors are reluctant to sell the fuel at Petrobras prices because they fear a price increase in the future. Due to the tax reduction and the direct subsidy program, which will pay diesel producers and importers, the government expects the price of diesel at the pump to drop by 0.64 Reis ($0.1227). EXPORT TAX In a press release, the Brazilian government stated that it was aiming to increase domestic refining, and secure internal supplies. However, it is unclear what refining capacity Brazil has available to increase local diesel production. Petrobras operated its refineries around?91% capacity last year and aimed to raise it to 95% by the first quarter. In part, the company's net profit of nearly $3 billion in the fourth quarter is due to the record exports that occurred during this period. Sales to foreign markets increased by?41.7% on an annual basis to 42 billion reals, while sales to domestic markets dropped 6.8%. The Finance Minister Fernando Haddad stated that the measures "would not affect Petrobras’s own fuel pricing policy." Haddad said that they would run until the end of the year but the government is hoping for a quick-term solution to Middle East conflict.
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After injuring and killing two, a gunman was shot at a Virginia university.
According to the university, a gunman opened fire on 'Thursday morning' at Old Dominion University, Norfolk, Virginia. He injured two people, before being fatally shot. The 'university issued an alert saying that the two injured people?were taken to hospital, and that classes and campus activities?were canceled for the rest of the day. According to the alert from the university, the gunman began shooting shortly before 10:49 in Constant?Hall. This is the heart of the college of business at the university. At?midday Thursday, police vehicles with flashing lights blocked streets around the Norfolk campus. According to the school's web site, the university has 24,000 students. Reporting by 'Ryan P. Jones and Rich McKay, Writing by Julia Harte, Editing by ChizuNomiyama.
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UK gilts are scorched once again as the Iran war rages and BoE rate increase bets soar
British government bonds fell again on Thursday. The escalating conflict with Iran has prompted investors to price in a Bank of England interest rate increase this year, amid concerns about Britain's vulnerability?to energy prices shocks. Long-dated bonds dropped the most on Thursday. This was due to concerns about possible additional government borrowings for funding support for energy consumers. At 1547 GMT the yields on 10- and 20-year bonds, which move in the opposite direction to the prices, both rose by around 10 basis points. The former reached its highest level since September at 4,804%. Markets bet more on the BoE raising interest rates, a prospect that was viewed as highly unlikely just a week earlier. Oil prices reached $100 per barrel earlier in trading, and bets on rate hikes increased. Interest rate futures priced in roughly 60% of the possibility of a quarter point rise in borrowing rates by the BoE, compared to expectations of no change in borrowing costs on Wednesday. "In the face of an overwhelming number and variety of variables, no one expects the Bank to do more than wait," said Danni H. Hewson, the head of financial analyses at AJ Bell. She was referring to the announcement of interest rates on Thursday, following the meeting of the Monetary Policy Committee in March. "This decision is still a tough one. We will pay close attention to any advice about the way forward." Investors believe that Britain is more vulnerable than other Western countries due to its stretched finances and heavy reliance upon imported gas. The fall in gilt prices is a sign of a tightening financial environment in 'Britain. Both the Finance Ministry and BoE are concerned, given that economic growth in 'Britain is already weak. Mojtaba Khamenei, Iran's Supreme Leader, said Thursday that the country would continue to fight and keep the Strait of Hormuz closed. This month, the five-year yield is sensitive to changes in the medium-term outlook of interest rates. It has risen 63 basis points, the biggest increase since September 2022, when Prime Minister Liz Truss unveiled her disastrous economic agenda. Before 2022, the last time that five-year yields increased by this much was in January 1996. Investor appetite for sales on the primary market remains strong despite the drop in gilt prices in this month. The bids for the 500 million-pound auction ($667.8-million) of index-linked gilts that are due in 2049 were 3.57 times higher than what was offered. $1 = 0.7487 pound (Reporting and editing by Suban Abdallah and Susan Fenton).
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Sources say that the Trump administration could relax US shipping regulations to combat the fuel price spike.
Two sources with knowledge of the discussions said that the Trump administration has told U.S. shipping groups and oil companies to prepare for the 'potential waiver' of the century-old Jones Act governing domestic shipping in order to facilitate the movement of fuel across the country. Sources said that the announcement could be made as soon as Thursday. It would aim to combat the'spiking fuel prices' since the U.S. and Israeli war on Iran. The White House has not yet commented. According to the Jones Act?goods transported between U.S. port must be?carried by vessels?that were built in the U.S., are U.S. flagged and are primarily owned by Americans. This requirement severely limits the number available of tankers for domestic shipments. The rule could be temporarily waived to allow foreign ships between ports in the U.S. Ports, potentially lowering costs and speeding up deliveries In the past, waivers of the Jones Act were only granted sparingly by the United States. Typically, they are issued in response to major supply disruptions. Most recent waivers were issued after Hurricanes Harvey and Maria in 2017. The U.S. Department of Homeland Security allowed foreign-flagged ships to transport fuel between U.S. ports at the time. Ports to alleviate shortages and accelerate deliveries to affected areas. Reporting by Jarrett Renshaw, Editing by Richard Valdmanis & Chizu Nomiyama
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Vale, a Brazilian company, has doubled its ore production in 2025 from waste materials.
Vale, a Brazilian mining company, said on Thursday that it would produce 26.3 million metric tons of 'iron ore' by 2025 using materials classified as wastes or tailings. This is more than twice the 12.7 millions tons produced in this manner a year ago. Vale reported that the volume of iron ore recovered from waste materials exceeded Vale's initial estimate of 20 million tons. Vale is investing in circular mining. It has grown from a small pilot project to a large-scale industrial effort. Vale reported that the initiative reduced waste disposal by 60 railcars of iron ore last year and helped the company achieve its decarbonization goals. This initiative is part Vale's circular mining program which aims to source 10%?of its?output by 2030 from waste materials. These measures gained traction after deadly dam failures in Brazil over the past few years. Vale also highlighted the sand production from waste that has?surpassed 3 mt since 2023. (Reporting and writing by Marta Nogueira, Editing by Bill Berkrot).
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Caribbean Islands seek $200 million to push regional biodiversity
Grenada's Climate Ambassador said that a?group of Caribbean nations plan to raise $200m for a bid to?"boost biodiversity" in an effort to gain a?more influential position on international financed environmental projects?to maximize their impact. The 30X30 initiative of the Organisation of Eastern Caribbean States and its 12 member states is part of a broader international drive to achieve targets agreed in 2022. These include protecting 30% of land and ocean by 2030. Safiya sawney stated that she hoped such cross-border projects, which are under government oversight from the beginning, would be more successful as they leveraged the power of multilateral and bilateral funding, as well as philanthropic, private sector, and philanthropic tools, such as debt for nature swaps. CARIBBEAN ISLANDS SEEK ENVIRONMENT?FINANCE PAY While $650 million was raised for conservation in member countries over the next 20 years, the governments had to often consider the 'priorities of multilateral donors before their own. Some donors duplicated?efforts due to a lack of coordination. From the outside, you might say: "Wow, that's quite a bit of money. Why do you want more? In an interview she gave last week, she said that the issue is "that we don't see that impact". In a report by the Back to Blue Initiative, which focuses ocean sustainability policy on regional approaches, such as "OECS 30X30", it was suggested that these regional approaches could be transformative for closing a large funding gap. According to the Global Center on Adaptation, SIDS (Small Island Developing States)?worldwide – which will bear most of the impact of rising sea levels – need $12 billion a yearly to adapt to climate change. They only get $2 billion. Sawney stated that there is a "huge disconnect" between what governments have invested time and effort into planning for their own circumstances and what donors are funding. We're challenging them by saying 'No', 'you need to do better work if you want to make sure that your money is stretched. You must trust us and believe that we will do what we would need to for ourselves. Sawney stated that, in light of the fact that development aid budgets have been 'cut by richer countries,' it is important to scale up projects regionally and attract private investors. "For us, this programme is very, very important, because we have to show non-traditional investors that we are a good investment." (Reporting and editing by Kevin Liffey; Simon Jessop)
No other victims reported in Detroit area synagogue shooting.
According to a law enforcement official, the suspect in a?episode?of gun violence that occurred on Thursday at a Detroit area synagogue has been shot dead. No other victims have yet been reported. Michigan State Police reported an?active shooting at Temple Israel Synagogue, located in West Bloomfield, Detroit suburb.
The building's roof was visible from aerial footage, although few details were available. Many police and fire departments vehicles were gathered at the scene.
According to CNN, Oakland County Sheriff Michael Bouchard stated that no injuries were confirmed "except possibly the shooter".
Bouchard told reporters that the suspect drove through the building's doors in a car, then drove down the hallway before being confronted. The police could not confirm what killed the suspect, but they did say that security exchanged gunfire with him.
He said that no children or staff members were injured. However, one security officer was struck by the vehicle and taken to hospital for treatment.
Bouchard stated, "That individual should not be a problem." Later, a law enforcement official familiar with the case confirmed that the suspect had been shot at the scene.
CNN, citing a number of law enforcement sources, reported that a large quantity of explosives was found in the trunk of the suspect's vehicle.
Temple Israel has over 12,000 members and runs a center for early childhood education. It provides care to children as young 6 weeks, according to the website.
Local media reported that buses were being used to transport children away from the synagogue to be reunited their parents.
FBI Director Kash patel wrote in X that "FBI personnel are responding with partners to the apparent vehicle rammings and active shooter situations out of Temple Israel Synagogue, West Bloomfield Township in Michigan."
In response to the Temple Israel incident, The Jewish Federation posted a message on Facebook stating that its affiliated agencies are "currently under precautionary lockdown".
Since U.S.-Israeli forces launched airstrikes against Iran on 28 February, Jewish organizations in the United States are operating under increased security. This has triggered a war that is intensifying across the Middle East.
"We have been talking about this potential for the past two weeks. It's a pity that it has happened." Bouchard told CNN that there had been a lot of preparation. "All Jewish institutions in the area will have an extra presence until we figure out this."
In a statement, Michigan Attorney General Dana Nessel stated that "antisemitism has no place in Michigan. It cannot be tolerated." In moments such as these, it is more important than ever to come together, stand up with our neighbors and confront hate wherever it appears.
Temple Israel, as per its website, was founded in 1941. Reporting from Washington by Jasper Ward; writing by Steve Gorman, editing by Scott Malone and Chris Reese; David Gaffen, Lisa Shumaker, and Lisa Shumaker
(source: Reuters)