Business

Global oil prices have continued to surge after Yemen's Houthi rebels entered the Middle East war, launching attacks on Israeli targets. The Iran-allied militants had previously attacked commercial ships passing through Bab-el-Mandeb, a maritime chokepoint between the Red Sea and the Gulf of Aden, during Israel's war with Hamas. The weekend events have stoked fears of wider disruption to the global energy and goods trade as the strait is crucial for shipping between Europe and Asia via the Suez Canal. 

Oil surged over $115 a barrel this Monday as the war in Iran entered its fifth week. Houthi strikes on Israel have raised concerns that shipping through the Bab el-Mandeb strait could be disrupted, adding to the supply pressure already created by the effective closure of the Strait of Hormuz. Also in this edition, we see how the conflict in the Middle East is affecting a wide range of businesses, including used car dealers in Japan and South Korea.

Concern that the Iran war could plunge the world into stagflation is rising as hostilities in the Middle East continue with no end in sight. The European Bank for Reconstruction and Development (EBRD)'s chief economist Beata Javorcik tells FRANCE 24's Yuka Royer that while the world is not yet seeing high stagflation risks, everything depends on how long the conflict will last. Ongoing high energy prices will lead to higher inflation, which will in turn hurt growth. 

Elon Musk's profitable rocket and satellite internet company SpaceX is reportedly preparing to raise $75 billion on public equity markets as its subsidiary xAI burns cash. But first: a pair of US court verdicts against social media giants could signal the sector's Big Tobacco moment, and France's finance minister convenes G7 officials to address the economic fallout from the Iran war. 

France's Finance Minister Roland Lescure revealed on Wednesday that between 30 and 40 per cent of Gulf refining capacity has been damaged or destroyed by Iran's retaliatory strikes, leaving a shortage of 11 million barrels a day on global oil markets. Lescure warned it could take up to three years to restore damaged facilities, and several months to restart those that were urgently shut down.

Meanwhile, Italian Prime Minister Giorgia Meloni has travelled to Algeria for emergency energy talks, seeking to secure increased gas deliveries to Italy as the country scrambles to replace lost LNG supplies from Qatar.

With fossil fuel supplies under severe strain, both the UK and Germany signalled on Wednesday that the energy crisis is accelerating their green transitions.

This comes as European Central Bank President Christine Lagarde assured the continent that the ECB has several options for dealing with the inflation shock triggered by the US-Israeli war on Iran, and vowed that policymakers would not be "paralysed by hesitation".

The energy crisis over the Iran war has left some countries glad they've added more renewables, while others are doubling down on fossil fuels. But first: oil prices fall on hopes for de-escalation in the Middle East, while suspicions swirl over potential insider trading on Trump administration policies.

Oil prices rose again on Tuesday, a day after a sharp decline, amid confusion over which way the Iran war is going. Brent crude settled well above $100 a barrel. Meanwhile, rising energy costs stemming from the conflict are causing the cost of plastic packaging to skyrocket, which in turn will make everything on supermarket shelves more expensive. But first: the EU and Australia have sealed a landmark free trade agreement that will eliminate tariffs on most goods. 

The EU and Australia have signed a sweeping free trade agreement that will eliminate tariffs on nearly all trade between them as global economies seek to hedge against chaotic US tariff policies. Also in this edition: crude oil prices rise again as traders remain sceptical of signals that Washington is trying to de-escalate its war with Iran.  

Global crude oil prices fell about 10 percent and Wall Street stocks rallied after Donald Trump said he was holding off military strikes on Iran's power plants. The US president made the announcement following what he called "constructive talks" with Tehran, despite Iran denying it was negotiating a deal. Meanwhile, France is looking at the possibility of increasing the country's refining capacity to cushion the impact of higher petrol prices on consumers, but is stopping short of cutting fuel taxes. 

Natural gas prices soared as attacks intensified on energy infrastructure in the Middle East. The Ras Laffan plant in Qatar has sustained "significant damage", according to its operators, which could take years to fully repair. That will have a significant impact on global supplies, because the facility produces around a fifth of the world's LNG (liquefied natural gas). Also in the show: the World Trade Organization warns a trade slowdown could lead to mounting food insecurity.