War in the Middle East: Global Economic Consequences

Here are the latest global economic developments on Tuesday around 08:00 GMT, the 39th day of the conflict in the Middle East:

– Fuel prices: targeted assistance for certain professions

The government will soon announce a new aid package for some of the professions most affected by the surge in fuel prices, Energy Minister Maud Brégeon said on Tuesday. She reiterated that there would not be a universal aid, confirming Prime Minister Sébastien Lecornu’s promise from last week.

– Fuel: about 18% of gas stations out of stock

Almost one in five gas stations is experiencing a shortage of one or more fuels after the Easter weekend, according to Energy Minister Maud Bregeon.

European stock markets mostly open higher

European stock markets opened mostly higher on Tuesday despite President Donald Trump’s latest ultimatum to Iran, which is keeping oil prices high.

After a few minutes of trading, the CAC 40 index was up by +0.37% in Paris, as well as London (+0.12%) and Milan (+0.27%). The trend was more uncertain in Frankfurt (-0.05%).

– Oil prices rise

Oil prices rose significantly on Tuesday following new threats from President Donald Trump.

By 07:50, the Brent barrel for June delivery, a global benchmark, was up by 1.60% at $111.53. The American equivalent, the West Texas Intermediate barrel for May delivery, jumped by 2.62% to $115.30.

– Trump says he can destroy bridges and power plants in Iran in four hours

Donald Trump said the US could destroy “in four hours” bridges and power plants in Iran.

“Thanks to the power of our armed forces, we have a plan that involves destroying all of Iran’s bridges by midnight tomorrow, shutting down all of Iran’s power plants (…) that can never be used again,” said the American President, referring to the ultimatum set.

Saudi petrochemical complex hit after Iranian missile strikes (witness)

A petrochemical complex in eastern Saudi Arabia was hit by attacks overnight from Monday to Tuesday, according to an AFP witness, a few hours after similar facilities in Iran were struck.

– Israeli strikes on largest Iranian petrochemical complex

Israel said it carried out strikes on the largest petrochemical complex in southern Iran, claiming to have dealt “a severe blow to the regime,” while Tehran stated that the situation was “under control” but the extent of the damage is still being assessed.

Fars News Agency also reported that another petrochemical complex near Shiraz (south-central Iran) was hit by strikes, resulting in “minor damage.”

– Head of the IEA predicts acceleration of renewables

The head of the International Energy Agency (IEA) believes that the energy crisis linked to the war in the Middle East should ultimately accelerate the development of renewable, nuclear energy and electric vehicles, in an interview set to appear in the French newspaper Le Figaro on Tuesday.

– War drives inflation in the Philippines

Inflation in the Philippines spiked dramatically in March, reaching 4.1% year-on-year due to historically high fuel prices fueled by the war in the Middle East, according to government figures released on Tuesday.