Here are the latest global economic developments related to events in the Middle East, as a fragile ceasefire between Iran and the United States enters its sixth day. The American army will enforce a blockade of Iranian ports on Monday. The US military announced on Sunday that starting from Monday at 14:00 GMT, it would impose a blockade on “vessels of all nationalities entering or exiting Iranian ports and coastal areas”, due to the lack of agreement to end the conflict. However, it clarified that it would allow the passage of ships not heading to or from Iran through the Strait of Hormuz, a strategic passage for global trade and oil supply, according to a statement from the US Central Command for the Middle East. “The threats by the President of the United States to implement a maritime blockade against Iran (…) are completely ridiculous and amusing,” said Admiral Shahram Irani, head of the Iranian Navy. Oil prices surge beyond $100. Oil prices jumped 8% and rose above $100 per barrel on Monday in early Asian trading, just hours before the announcement of the US blockade of Iranian ports. After dropping to around $97 last week, the West Texas Intermediate (WTI) barrel for May delivery rebounded by 8.34% to $104.62 on Monday around 00:40 GMT. The Brent barrel from the North Sea, for June delivery, was trading at $102.79 at the same time, up by 7.97%. Tokyo and Seoul stock exchanges opened sharply lower, while the price of gold plummeted significantly due to the return of inflation fears. Ireland: Emergency meeting over fuel price protests. The Irish government convened urgently on Sunday to discuss support measures in response to the surge in fuel prices caused by the war in Iran, following several days of protests and blockades. Micheal Martin’s government seeks to ease tensions after several days of protests by farmers, truck drivers, and taxi drivers against the rising fuel prices. Saudi Arabia: East-West pipeline back in operation. The oil pipeline running from east to west across Saudi Arabia, a crucial infrastructure for oil exports during the blockade of the Strait of Hormuz, is once again “in operational condition” after attacks, the country’s authorities announced on Sunday. “The energy facilities and the east-west pipeline damaged by attacks are now back in operation, improving the supply reliability,” said the Saudi Energy Ministry, as reported by the official SPA agency. Indonesian President visits Moscow with oil on the agenda. Indonesian President Prabowo Subianto flew to Russia on Sunday to meet with his counterpart Vladimir Putin to discuss oil, whose prices have soared due to the conflict in the Middle East. The presidency confirmed to AFP that the head of state was leaving Indonesia on Sunday night to join Moscow. Oil, “of strategic importance for the Indonesian nation,” will be high on the agenda, as indicated by Indonesia’s Foreign Minister Sugiono on Saturday.
[Context: The article discusses recent economic developments following the fragile ceasefire between the US and Iran in the Middle East.] [Fact Check: The translated text accurately conveys the economic updates and political decisions regarding Iran, the US, oil prices, and other related events.]
