Wall Street fell on Friday, and WTI oil exceeded 100 dollars

New York Stock Exchange fell on Friday, worried about the extension of the war in the Middle East and its effects on inflation and economic growth, with the Dow Jones index losing 1.73% and the broader S&P 500 index 1.67%, while the tech-heavy Nasdaq dropped by 2.15%. European stock exchanges ended the week in the red.

The price of Brent crude oil for delivery in May rose by 4.22% to $112.57, surpassing 110 dollars for the first time since Monday’s drop, and American WTI rose by 5.46% to $99.64. In post-oil market closing trading (6:30 PM GMT), it exceeded the symbolic threshold of 100 dollars.

The yield on 10-year US government bonds increased further to 4.48% from 4.42% the previous day at close, as investors cautious about inflation risk demanded higher interest rates for lending.

Surge in Energy Prices: European Ministers to meet on Tuesday

Energy ministers from European Union countries will meet via video conference on Tuesday to discuss “energy supply security,” announced Cyprus, currently holding the rotating EU presidency. American-Israeli strikes on Iran and Tehran’s response in the Gulf have caused global oil prices to soar, with Iran maintaining control over this crucial maritime route for international trade.

France announces fuel subsidies

The French government announced “targeted aid” in April for sectors most affected by the surge in fuel prices. Struggling small road transport businesses and fishermen can receive a subsidy of 20 cents per liter of fuel, while agricultural diesel will be tax exempt for a period. In total, the government announced around 50 million euros in aid next month for the transport sector. “We are given a breath of fresh air. But let’s not be fooled into thinking that this will be enough to pull the industry out of the series of crises it is facing,” reacted Josée Jouneau, president of the Ligurian fishing committee to AFP.

Despite the announcements, truck drivers demonstrated on the A7 highway south of Lyon on Saturday, and farmers in Marne protested, denouncing the rise in fuel prices and demanding more significant aid than the one announced the day before. Twenty-five trucks and a bus participated in a filtering barrier at Chasse-sur-Rhône (Isère), allowing only one lane of traffic between 09:00 and 14:00. Their action caused “significant slowdowns,” with up to 9 km of traffic jams, according to Vinci Autoroutes.

Return to coal

The energy crisis could force Germany to keep coal-fired power plants active for longer if the war continues and causes shortages, according to German Chancellor Friedrich Merz. “We must supply this country with electricity. I am not willing to jeopardize the core of our industry simply because we have opted for exit plans that have become unrealistic,” stated the executive.

U-turn in the Strait of Hormuz

The Iranian Revolutionary Guards announced that three containerships were forced to turn back in the Strait of Hormuz. They claim that this strategic route is closed to ships coming to or from ports linked to “the enemy.” The energy industry “underestimates the upheavals and geopolitical risks that await us,” said Mark Brownstein, vice president of an environmental organization, from the CERAWeek forum in Texas.

Thailand announces agreement with Iran for the Strait of Hormuz

Thailand announced on Saturday that it has reached an agreement with Iran to allow the passage of its tankers through the strategic Strait of Hormuz, which has been virtually paralyzed since the start of the war in the Middle East. “An agreement has been reached to allow Thai oil tankers to transit safely through the Strait of Hormuz, thereby helping to ease concerns about fuel delivery to Thailand,” said Thai Prime Minister Anutin Charnvirakul at a press conference.

The Indonesian government was also in talks with Iran on Saturday to allow passage for its tankers through the Strait of Hormuz, as Tehran responded favorably to Jakarta’s diplomatic efforts on this issue, stated a spokesman for the Ministry of Foreign Affairs. Pertamina Pride and Gamsunoro, two tankers owned by a subsidiary of the public energy company Pertamina, are still in the Persian Gulf waiting to pass through the strait, according to a company spokesperson.

Suspension of Operations at Maersk in Oman

Danish shipping company Maersk announced on Saturday on its website that the port of Salalah in the Sultanate of Oman, hit earlier in the day by a drone attack, was “immediately” evacuated, with its operations suspended for 48 hours. The authorities of the Sultanate had earlier indicated that the attack had injured a worker and caused minor damage to this port, one of the country’s main ports. The port is managed by a Maersk subsidiary, APM Terminals. It had already been affected since the start of the conflict in the Middle East and had to suspend its operations.

Air Traffic: Fewer Cancellations, but Reduced Programs

The flight cancellation rate in the Middle East has significantly increased since the first days of the war, but the number of scheduled flights has also decreased in parallel, according to a specialized company.

Thousands of Tons of Tea Blocked in Kenya

Between 6,000 and 8,000 tons of tea, valued at around $24 million, are blocked at the Kenyan port of Mombasa due to the conflict in the Middle East, reported the East African Tea Trade Association (EATTA). Kenyan meat and horticulture are also affected by the conflict, recording millions of dollars in losses.

Production halted at major Iranian steel plant

Production at a large steel plant in Iran was halted following American-Israeli strikes, according to Iranian media on Saturday. According to a statement from Khuzestan Steel Company, a southwestern Iran-based company cited by the Iranian newspaper Shargh, the “production furnaces of the plant were stopped” after several units and steel facilities were hit on Friday during the strikes.