Business

Oil markets fell and picked up again on Wednesday, as the International Energy Agency reportedly considers its largest-ever release of emergency crude stockpiles to stabilise global markets, while Iran is said to have laid naval mines in the Hormuz Strait. In this edition, we look at how the latest developments in the ongoing Middle East war are affecting markets.

As the Iran war continues to disrupt oil supplies from the Middle East, Paris has hosted a summit aimed at boosting the use of civilian nuclear energy. Announcing a plan to provide a €200 million guarantee for investment in innovative nuclear technologies, European Commission President Ursula von der Leyen said it had been a strategic mistake for the continent to reduce the share of nuclear power in its energy mix.

Global benchmark prices for oil fell, and stocks rose, on the back of US President’s comments signalling the war in Iran could be nearing some form of conclusion. Meanwhile, the Strait of Hormuz is still effectively closed to tanker traffic, and Washington is weighing its options both to clear the bottleneck and ease pressure on consumers back home. Also in this edition, Venezuela prepares to open up its mining sector to US companies.

Crude oil prices pulled back sharply after brushing $120 a barrel earlier on Monday. After hovering around $100 for most of the day, both Brent and WTI benchmarks reversed course following comments from Donald Trump suggesting the US-Israeli war with Iran could soon come to an end. As Gulf countries began cutting production amid a rapid decrease in available storage space, consumers have already started seeing fuel prices rise.

China's annual parliamentary session kicks off with a growth downgrade as leaders target technology dominance in the manufacturing field. We take a closer look. Also in this edition: South Korean markets bounce back from a huge selloff, and a US trade court orders the Trump administration to issue tariff refunds.

Oil prices have steadied for the first time since the US and Israel launched strikes on Iran. But concerns about energy security and prices are weighing on consumers. In France, long queues have formed at petrol stations, despite the energy minister's assertion that the public shouldn't worry about shortages. Also in the show: shipping giants Maersk, Cosco and Hapag-Lloyd suspend all operations in the Gulf, and the Trump administration plans to raise global tariffs to 15 percent "sometime this week".

South Korea's main stock index, the KOSPI, lost 12 percent on Wednesday, sending retail investors into a panic as fears of energy shortages due to the war in Iran battered shares in chipmakers and industrial giants. Meanwhile, Donald Trump says the US will insure oil tankers transiting the Persian Gulf as operating costs skyrocket, and the travel industry suffers as key Middle East hubs remain out of commission.

Iran has taken the risky gambit of closing the Strait of Hormuz, which could backfire and hurt its own economy. FRANCE 24's Yuka Royer speaks with Iranian-Austrian economist Mahdi Ghodsi from the Vienna Institute for International Economic Studies about Iran's unsustainable economic path and whether it's headed for hyperinflation. 

Iran has declared the Strait of Hormuz closed and threatened to fire at any ship passing through it. The narrow waterway is a vital chokepoint for global oil and gas, but also for other commodities such as fertiliser. FRANCE 24's Yuka Royer speaks with Noam Raydan, a maritime risk expert at The Washington Institute for Near East Policy, about the potential impact of the Strait's closure and how Iran could further escalate the situation. 

As war escalates in the Middle East and Iran's security forces order ships not to cross the Strait of Hormuz, oil prices have surged this Monday, putting pressure on global markets. In this edition, we speak to Jorge León of Rystad Energy to better understand the forces that are bringing benchmark energy prices higher.