Latest News
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Trump: US will block the Strait of Hormuz as soon as possible
Donald Trump said on Sunday that the U.S. Navy will 'immediately begin blockading?the?Strait of Hormuz?and interdict any vessel in international waterways which has paid a toll for Iran. Trump's remarks were made in a Truth Social post, hours after U.S.-.Iran talks ended without a deal. Trump said that the meeting went "well," adding that the two sides were not in agreement on Iran's nuclear program. "Effectively immediately, the United States Navy will begin the BLOCKADING of any and all ships trying to enter or leave the 'Strait of Hormuz,'" said Trump. He is opposed to the idea of Iran charging a toll for ships to pass through the strait. "I also ordered our Navy to search for and intercept any vessel in international waters that has paid tolls to 'Iran. He said that anyone who pays an illegal toll on the high seas will not be allowed safe passage.
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China offers incentives for Taiwan after opposition leader's visit
China announced 10 new incentives for Taiwan on Sunday, including easing tourist restrictions, allowing "healthy" TV dramas and facilitating the sale of food, after a visit from the island's opposition leader. Cheng Li-wun (chairwoman of Taiwan's largest political opposition party, the Kuomintang) made this decision at the end of a visit to China. She spoke with Chinese President Xi Jinping about the importance of peace and reconciliation. The official Xinhua News Agency announced 10 measures that "explore" a number of issues, including the resumption of flights between China and Taiwan, and the permission to individuals from Shanghai or Fujian Province to visit Taiwan. Xinhua reported that a mechanism would be created to reduce the inspection standards of food and fishery items, but it must be based on a political platform "opposing Taiwan's independence". Taiwanese TV dramas, documentaries, and animations will be allowed to air, as long as "they have a correct orientation, healthy contents, and high-quality production," the statement added. Taiwan's Mainland Affairs Council (which is responsible for the island's China Policy) said in a recent statement that Beijing's "unilateral" concessions are merely poison pills disguised as "generous gifts packages." It said that the Taiwanese Government supports healthy and orderly exchanges across the Strait, but these should not be dependent on political objectives or preconditions. The?KMT issued a statement in which it welcomed China's declaration, calling it a "gift" for the people of Taiwan. China has refused to speak with Taiwan President Lai Ching Te, claiming that he is a separatist. He rejects Beijing’s claims of sovereignty over the democratically-governed island. China and Taiwan blame each other for the lack of Chinese tourism on the island following the COVID-19 pandemic. Taiwan has also complained before about Chinese restrictions on the import of certain agricultural and aquatic products. Taiwan claims that China uses unjustified excuses in some cases to prevent the spread of pests.
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Saudi Arabia restores capacity to the East-West oil pipeline at 7 million barrels per day after the attacks
Saudi Arabia said that it had restored the full capacity of the East-West oil pipeline to about seven million barrels per day. This was after assessing the damage caused by the attacks on the energy sector during the Iran conflict. According to the ministry, the energy facilities and pipelines that were damaged during the conflict are now operational again. Saudi Arabia did not say who was behind the attack, but it has intercepted Iranian missiles and drones many times in recent weeks. The strikes also disrupted key oil, gas and refining sites, as well as petrochemical, electricity and petrochemical sites, in Riyadh and the Eastern Province. RESTORE OUTPUT TO CONTINUE SUPPLY Saudi Arabia said that the attacks on Thursday had reduced its oil production by approximately 600,000 barrels a day, and its East-West Pipeline throughput by about 700,000. Saudi Arabia has only one crude export route, the East-West Pipeline, due to the closure of Strait of Hormuz. Reports on Wednesday claimed that Iran had attacked the 'pipeline just hours following the ceasefire. The ministry said it had'recovered affected volumes' from the Manifa field, where production had been reduced previously by approximately?300,000. The ministry said that work was underway to restore the full output at the Khurais plant after attacks on it reduced Saudi Arabia's capacity by a further?300,000 bpd. The company said that a quick recovery would improve the "reliability and consistency of supplies for local and global markets." Reporting by Menna Alaa Al-Din, Muhammad Al Gebaly and Bernadette B. Baum
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China offers incentives for Taiwan after opposition leader's visit
China announced 10 new incentives measures for Taiwan on Sunday, including relaxing tourist restrictions, allowing "healthy" TV dramas and facilitating the sale of food. This follows a visit by Taiwan's opposition leader. Cheng Li-wun (chairwoman of Taiwan's biggest opposition party, the Kuomintang KMT) made the decision at the end of a visit to China. She spoke with Chinese President Xi Jinping about the importance of peace and reconciliation. The 10'measures', announced by the official Xinhua News Agency, "explore" establishing a'regular communication system between the KMT, and China’s Communist Party. They also include the full resumption of flights between both sides, and allowing individuals from Shanghai, and Fujian Province, to visit Taiwan. Xinhua reported that a mechanism would be created to reduce the?inspection standard for food and _fishery products. However, this must be based on the political basis of "opposing Taiwan's independence". Taiwanese dramas, documentaries, and animations will be permitted to be shown, as long as they are "correctly oriented, have healthy content, and are of high production quality," it added. Taiwan's government did not immediately respond. China has refused to speak to Taiwan's President Lai Ching-te because it believes he is "separatist." He rejects Beijing’s claims of sovereignty over the democratically-governed island. China and Taiwan blamed eachother for the failure of a large-scale Chinese tourism on the island after the end of the COVID-19 epidemic. Taiwan complained before about Chinese restrictions?on the imports of certain agricultural and aquatic products. It claimed that China had in some cases used unjustified reasons to stop the spreading of pests and disease.
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Israel reprimands Spain for blowing up an effigy of Netanyahu
Israel announced on Saturday that it had reprimanded Spain’s most senior diplomat in Tel Aviv for the explosion of a giant effigy?of Prime Minister Benjamin Netanyahu this week in a Spanish town. Maria Dolores Narvaez, the mayor of El Burgo in southern Spain, told local TV that the seven-metre-high (23-foot-high)?figure had been packed with?14 kg (31 lb) gunpowder during a ceremony held for decades on April 5. Israel's Foreign Ministry stated in a press release on X that highlighted a video, "The appalling hatred of Jews on display is the direct result from Spanish Prime Minister Pedro Sanchez's Government's systematic incitement." I was not able to confirm the video immediately. "The Spanish government is committed to combating antisemitism, hate and discrimination in any form. We reject any 'insidious allegations' that suggest the opposite, a Spanish Foreign Ministry?source said. El Burgo Mayor Narvaez stated that the town had previously used effigies for U.S. president Donald Trump and Russian president Vladimir Putin at the annual event. Spain has always been a vocal critic of U.S. military operations in Iran and Lebanon. This is despite U.S. warnings to punish non-cooperative NATO members. Spain and Israel have been involved in a long-running dispute that began with the Gaza War. Gideon Sa'ar, Israeli Foreign Minister said that a Spanish ban on aircraft or ships transporting weapons to Israel through its?ports and?airspace was antisemitic. Spanish Foreign Minister Jose Manuel Albares has accused Israel of breaking international law and the two-week truce after a wave of airstrikes across Lebanon this week. Netanyahu claimed on Wednesday that Lebanon is not a part of the ceasefire, and Israel's military continues to attack Hezbollah with force. Sanchez, who is a prominent opponent of the Iran War, has shut down Spanish airspace for any aircraft that may be involved in an encounter he describes as reckless and illegal. (Reporting and editing by Alexander Smith; Reporting by Graham Keeley)
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The pilots' union has called for strikes on April 13 and 14.
?Union VC called on 'pilots 'at Lufthansa on a saturday to strike for two days starting on Monday over a pension dispute, saying the company has failed to make an acceptable offer. The union has asked pilots at Lufthansa CityLine, Lufthansa CityCargo, and Lufthansa Cargo to strike between April 13, 0001 CET (2221 GMT) and April 14, 2359 GMT (2159 GMT), the union stated. The ban excludes flights to the following Middle East countries: Azerbaijan (Azerbaijan), Egypt (Bahrain), Iraq, Israel (Israel), Jordan (Jordan), Kuwait, Lebanon, Oman and Saudi Arabia. The union has also asked pilots at Lufthansa's subsidiary Eurowings to go on strike from 0001 to 2359 CET on the 13th of April. The Cockpit 'union felt compelled to make this move after the employers showed no real willingness -to reach a resolution in several collective bargaining Disputes, said VC President Andreas Pinheiro. "Despite our deliberate choice not to strike over Easter holidays, no serious offer has been made." Lufthansa stated in a press release that VC's announcement was a "completely a new escalation" and questioned the union's demands to "double a company pension plan which is already excellent and above average". Reporting by Christoph Steitz, Ilona Knowebach. Jane Merriman edited the article.
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India increases export duties on aviation turbine fuel, diesel
India has raised its windfall 'tax' on the export of diesel and aviation turbine fuel, which it had imposed last week to ensure an adequate supply at home. India's Finance Ministry increased taxes on diesel exports to 55.5 rupees/litre from just 21.5 rupees/litre. The tax on aviation turbine fuel exports was also raised from 29.5 rupees/litre to 42 rupees/litre. India cut the excise tax on petrol and diesel last month by 10 rupees ($0.11). To control the rise in airfares it also set a limit of 25% on domestic airline fuel prices. Jet fuel can account for up to 40% of airline expenses. The global oil price has risen to $100 per barrel as the U.S. - Iran war continues to restrict the flow of crude oil through the Strait of Hormuz. This is the conduit that carries 40% of India's crude?oil?imports. India is the third largest oil consumer and importer in the world, and it relies heavily upon foreign supplies. (Reporting and writing by Nikunj Ahri; editing by Jan Harvey).
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Irish police break up blockade by protesters at high fuel prices
Irish police cleared protesters who had blocked the only oil refinery in Ireland on Saturday, after a senior government minister said that protests over surging fuel prices created a "very danger economic moment" for Ireland. Protesters angry by a rise of more than 20% in diesel prices following the U.S./Israeli war on Iran have used tractors and trucks to block a Whitegate refinery and a fuel terminal, as well as a few roads in Dublin's capital. The government said that hundreds of petrol stations were left 'without fuel,' putting emergency services at risk. State broadcaster RTE reported that police detained one protester and pushed others back at the Whitegate refinery on Saturday. The police released a video on social media that showed a number?of oil trucks?entering the refinery. After Finance Minister Simon Harris stated that the protests caused an "extremely hazardous moment" for the economy, this action was taken. Micheal Martin, the Prime Minister, said on Friday that the country was in danger of being forced to stop oil deliveries. Conor Humphries is the author. (Editing by Jane Merriman.
The US price bubble is deflated by the copper glut caused by the tariff threat
The U.S. President Donald Trump’s 50% tariff on the metal has caused a record-high premium in the United States. This is expected to decrease over the next few months, as traders who anticipated the tax will work their way through the system.
An investigation that began in February led to the tariffs. Commerce Secretary Howard Lutnick stated they would likely be implemented by August 1, or even sooner.
Analysts had predicted that the levy will be 25%. That was enough to cause stockpiling, which led to a 25% increase in the copper price traded on COMEX from the beginning of January until Monday.
Trump's announcement Tuesday pushed prices up to a record of $5.6820 per lb, or $12,526 per metric ton. This is a premium over $2,920 for a ton compared to the current price at the London Metal Exchange which is currently around $9600. The market uses this as its global benchmark.
Tom Price, Panmure Liberum's analyst, said: "Once the Trump-related noise subsides, we expect U.S. Copper prices to fall. They will converge with LME Prices as U.S. Consumption is deferred." Tom Price said that the U.S. demand for copper was weak, and predicted a drop of 16% this year to 1.32 millions tons compared to last year.
The uncertainty over tariffs has hampered economic growth.
The latest data from the U.S. Manufacturing sector, which is a major driver of demand for copper, shows that it has contracted.
The U.S. inventory is very high.
Analysts at Macquarie estimated that U.S. imports of copper totaled 881,000 metric tonnes in the first six months of the year, compared to a requirement of approximately 441,000 tons.
This implies a build-up of 440,000 tonnes of excess inventory, consisting of 107,000 tonnes of visible COMEX stock and 333,000 of unreported stocks or purchases pulled forward through the industrial supply chain.
As US stocks rise, London Metal Exchange Stocks fall
The excess copper has been shipped to COMEX-approved warehouses. COMEX's stock of 221,788 short tonnes or 201 metric tons on July 7 had risen by over 127,000 short tons (135%) since late March, when shipments of copper from around the globe began arriving in U.S. port.
The LME is the source of most copper exported to the United States. In late June, stocks had fallen by 66% since mid-February, to almost 90,000 metric tonnes, the lowest level since August 2023.
The copper that is shipped to the U.S. can be stored in U.S. Free Trade Zones, which means it won't have to clear customs. This makes it easier to ship.
Copper stored in COMEX, which operates on a tax-paid basis will be harder to ship but not impossible.
Duncan Hobbs said that there is no reason why copper cleared by customs cannot be reexported. He was the Research Director for commodity merchant Concord Resources. There would have to be some kind of financial incentive like a reduction in the COMEX premium.
The LME is a good option for those who want to sell excess metal. However, it would be difficult to do so in the United States, as LME warehouses tend not be in free-trade zones, and they typically store metal that has been duty-free.
Metal that has been cleared by customs can be stored and sold at the LME, but the price must be high enough to cover the duty already paid.
Sources in the industry say that the Administration could create exemptions for specific countries. This would reduce the COMEX premium and add to the uncertainty.
According to Trade Data Monitor, Chile was responsible for 70 percent or almost 646,000 metric tonnes of U.S. imports of copper last year. Chile is also a country with a surplus in trade, which makes it an attractive exemption.
Citi analyst Tom Mulqueen expects, for example, that Canada, Chile, and Mexico will "secure a rate of less than 25% as key partners" in the future.
The traders who tried to get ahead of the tariff now have some of the most costly copper in the entire world. It could be difficult to sell if the premium does not hold. (Reporting and editing by Veronica Brown, Barbara Lewis and Pratima Deai)
(source: Reuters)