Middle East war: global economic fallout

PARIS: Here are the latest economic events in the Middle East war on Wednesday:

- Qatar contains gas hub fires -

Qatari civil defence teams have contained fires that erupted at a major gas facility following an Iranian attack, the Interior Ministry said.

"Civil Defence has fully brought all fires under control in the Ras Laffan Industrial Area without any reported injuries. Cooling and site‑securing operations are still ongoing," the ministry said.

Earlier on Thursday, Iranian state television said that a missile struck the gas plant, hours after it had been hit in a destructive strike.

Qatar's state‑run energy firm said the strikes hit several of its Liquefied Natural Gas (LNG) facilities and caused "extensive" damage.

Ras Laffan is the world's largest LNG hub.

- Pacific nations fear fuel shortages -

Leaders of Samoa and Tonga have appealed for help over fears of possible fuel shortages and escalating costs caused by the war.

Samoan Prime Minister La'aulialemalietoa Leuatea Schmidt said on Wednesday he had asked New Zealand leader Christopher Luxon if it was possible to divert fuel to his country in case of crisis.

Tongan Prime Minister Lord Fakafanua, meanwhile, said New Zealand and Australia were "sharing intelligence" to help his country best prepare for shortages.

- Cathay suspends Dubai, Riyadh flights -

Hong Kong aviation giant Cathay Pacific has suspended flights to and from Dubai and Riyadh until the end of April over the Middle East war.

- Trump threatens Iran gas field -

US President Donald Trump threatened to destroy Iran's key South Pars gas field if there were further attacks against Qatar's main gas plant.

Trump confirmed on his Truth Social platform that Israel had struck the South Pars field but said the US "knew nothing" of the attack, which spurred Iran to strike Qatar's Ras Laffan facility.

The South Pars/North Dome mega‑field is the largest known gas reserve in the world and is shared by Iran and Qatar.

Around 70% of Iran's domestic natural gas comes from its portion of the field, which it calls South Pars.

- UAE closes gas facility -

Abu Dhabi has shut down operations at a gas facility due to falling debris from missile interceptions, the Emirati capital's media office said.

"Abu Dhabi authorities are responding to incidents at the Habshan gas facilities and at the Bab oil field caused by falling debris from the successful interception of missiles," it said on X.

- Oil jumps after Iran facilities hit -

Oil prices surged after strikes against energy infrastructure in Iran and Qatar.

West Texas Intermediate (WTI) was up 2.5% at $98.69 in Asian trade on Thursday, while Brent crude oil soared more than 5% to nearly $113 a barrel on fresh worries about energy supplies.

- Fed raises inflation outlook -

The US Federal Reserve raised its outlook for inflation as it held interest rates steady, citing an "uncertain" economic outlook due to the war in Iran.

Federal Reserve chair Jerome Powell said he expected higher energy prices to boost inflation in the near term, though he added that further economic impacts remain uncertain.

The European Central Bank and the Bank of England follow on Thursday.

- Iranian retaliation keeps oil market on edge -

Iran launched attacks targeting oil and gas facilities around the Gulf.

QatarEnergy said emergency teams had brought under control a fire caused by an Iranian attack on the country's main gas facility that caused "extensive damage" at the site.

Qatar later ordered Iran's military and security attachés along with their staff to leave the country within 24 hours.

Saudi Arabia's defence ministry said on Wednesday that five drones approaching an energy facility were intercepted in the kingdom's east, while Emirati air defences were countering an Iranian missile threat.

- Trump waives shipping law -

President Donald Trump temporarily waived a century‑old shipping law to help ease energy costs that have surged since US‑Israeli strikes on Iran plunged the Middle East into war.

Trump's move to issue a 60‑day Jones Act waiver would lift a ban on foreign‑flagged vessels transporting cargo between US ports over this period.

Separately, the US Treasury Department issued a licence on Wednesday to authorise certain transactions between established US entities and Venezuela's state‑owned oil company PDVSA.

- Italian government acts to reduce fuel prices -

Italy adopted measures by decree to reduce fuel prices in the country, the government said, in response to spiking prices due to the war.

"We are reducing the price of fuel by around 0.25 euros (28 US cents) per litre for everyone," along with a tax credit for truckers, Prime Minister Giorgia Meloni wrote on social media.

- Iraq exports via Turkey -

Iraq announced it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the Strait of Hormuz.

The state‑owned North Oil Company said it was sending an initial 250,000 barrels a day from its fields in the northern Kirkuk province through the pipeline, well below the 3.5 million barrels a day it has shipped in normal times from its southern Basra fields via the Strait of Hormuz.

But Iraqi officials said the country's gas imports from Iran were completely halted. The news came as Iran denounced the South Pars attack.

- Ship fuel prices soaring -

Shipping fuel prices have reached "truly unprecedented" levels, having nearly doubled from the cargo crunch driven by the Middle East war, an industry leader told AFP on Wednesday.

- Asia petrochemical output slows -

The Middle East war is forcing petrochemical giants in key Asian economies to cut production as the conflict rattles supplies of naphtha, a crucial oil‑derived component used to make a range of plastic goods.

Mitsubishi Chemical and Mitsui Chemicals have cut output, Shin‑Etsu Chemical said it would raise prices, and LG Chem warned it may not be able to fulfil some orders.

- Emergency shipping talks -

The International Maritime Organization began an "extraordinary session" to discuss shipping amid the war.

The IMO's 40‑member council could vote on Thursday on several proposed resolutions, including one to establish a safe maritime corridor to allow the safe evacuation of seafarers and ships stranded in the Persian Gulf.

However, if passed, resolutions remain non‑binding.

- South Korea secures UAE oil -

South Korea said it would receive an additional 18 million barrels of oil from the United Arab Emirates through alternative supply channels, bypassing the need to use the Strait of Hormuz.

The presidential chief of staff declined to elaborate on the route.

About 70% of South Korea's oil imports normally pass through the strait.

- Sri Lanka unplugs EVs -

Sri Lanka has urged electric vehicle owners to stop charging their cars at night, saying the surge in demand is forcing the country to burn more coal and diesel to keep the power grid running.

Faced with an energy crisis driven by the war, Sri Lanka has begun rationing fuel and has also imposed a four‑day working week in a bid to reduce travel.

- BASF raises prices -

German chemicals giant BASF raised prices on some of its industrial products in Europe by 30% due to rising energy and input prices triggered by the war in the Middle East.

By RSS/AFP