Middle East war: global economic fallout

Here are the latest economic events in the Middle East war:

- European markets slump -

European stock markets extended heavy losses at the start of trading on Monday following sharp falls for Asian equities after US President Donald Trump and Iranian leaders traded threats over the key Strait of Hormuz.

London's benchmark FTSE 100 index shed 1.4 percent, Paris lost 1.7 percent and Frankfurt tumbled 2.0 percent.

- US benchmark oil breaches $100 -

Oil prices rose on Monday after the United States and Israel warned at the weekend that the war against Iran -- which has disrupted oil deliveries through the Strait of Hormuz -- would continue for several more weeks.

The price of West Texas Intermediate (WTI), the US benchmark crude, for May delivery climbed to just over $100 a barrel during early Monday trading. North Sea Brent crude was up more than one percent at $113.90 per barrel.

- IEA chief issues warnings -

International Energy Agency chief Fatih Birol warned on Monday that the global economy is under "major threat" from the energy crisis caused by the Middle East war, adding that "no country will be immune" to its effects.

At least 40 energy assets across nine countries in the region were "severely" damaged due to the war, Birol added.

- Indonesia eyes cutting fuel use -

Indonesia is eyeing up to 80 trillion rupiah ($4.7 billion) in savings to cushion its economy from the fallout of the war in the Middle East, including fuel-conserving measures such as one day of remote working per week for government and certain public sector workers.

- Australia, Singapore to cooperate on energy -

Australia and Singapore agreed to cooperate in ensuring smooth supply chains of oil, liquefied natural gas and diesel.  

In a joint statement, the two import-reliant nations said on Monday they shared "deep concern over the situation in the Middle East and its consequences for our region, such as the impact on energy supply chains and prices. 

"We are committed to working together to strengthen energy supply chain resilience."

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- Energy leaders meet in Houston -

Energy industry leaders will converge on Texas this week for an annual energy conference that this year will be dominated by oil and gas supply disruptions from the war launched by the United States and Israel against Iran.

More than 10,000 attendees are expected for CERAWeek, the spring gathering in Houston that has taken on unexpected importance as fuel prices soar since the Middle East war began in late February.

- US defends easing Iran oil sanctions-

US Treasury Secretary Scott Bessent defended a temporary lifting of US sanctions on Iranian and Russian oil to quell market turmoil, saying it undercut Iran's ability to sell oil at higher prices and that it would have been sold to China in any case.

"That Iranian oil was always going to be sold to the Chinese. It was going to be sold at a discount," he said in an NBC interview.

"So which is better -- if oil prices spiked to $150 and they (Iran) were getting 70 percent of that; or oil prices below 100?" 

- Long war would hurt -

If the war drags out more than six months, "all the economies of the world will be damaged", said the head of French oil giant TotalEnergies.

"If this conflict lasts three, four months, we can swallow it" thanks to existing oil inventories, CEO Patrick Pouyanne said in an interview with Chinese state broadcaster CGTN.

But with Iran's closure of the Strait of Hormuz blocking the usual route for around 20 percent of global oil production, a longer war would cause "real impacts", he warned.

- Cambodia supplier suspends LPG -

A major energy supplier in Cambodia has said it will halt sales of liquefied petroleum gas from the start of next month due to supply disruptions resulting from the Middle East war.

Sokimex, a supplier of premium cooking and burning fuel in the Southeast Asia nation, announced late on Sunday that it would "temporarily suspend the supply of LPG effective from April 1".

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