Seoul Gazette - Middle East war : global economic fallout

- Markets recover -

Asian and European stock markets rallied, although Wall Street opened flat after US President Donald Trump signalled that the US-Israel war on Iran was "going to be ended soon".

- Energy prices slide back -

World oil prices dropped by around seven percent and European natural gas prices plunged after Trump's comments.

Brent crude and US crude oil benchmark West Texas Intermediate were hovering either side of the $90 a barrel mark, after having soared to almost $120 Monday on fears of fallout disruption to energy supplies from the Middle East.

But they remain around 20 percent higher than prior to the start of the conflict.

European gas prices tumbled around 15 percent with the Dutch TTF natural gas contract, considered the European benchmark, trading at around 48 euros ($56), after rising sharply the day before.

- Iran warns will block Gulf oil -

Iran vowed to block oil exports from the Gulf while its war with the United States and Israel continues, in a stark rebuke to Trump's boast that the conflict was all but over.

The Islamic republic's Revolutionary Guards Corps (IRGC) mocked Trump's apparent bid to lessen the economic impact of the war, warning: "The Iranian armed forces... will not allow the export of a single litre of oil from the region to the hostile side and its partners until further notice."

- Egypt hikes fuel prices -

Egypt raised domestic fuel prices by up to 30 percent on Tuesday, blaming "exceptional" global energy pressures caused by the Middle East war, which has disrupted oil supplies and shipping routes.

The increases, announced by the petroleum ministry, apply to gasoline, diesel and natural gas used in vehicles.

- India tightens gas supply controls -

India ordered tighter controls over natural and cooking gas following import disruptions caused by the war, with restaurants warning it could spark widespread closures.

The world's most populous nation is the fourth largest liquefied natural gas (LNG) buyer and second-largest buyer of liquefied petroleum gas (LPG) used for cooking -- much of which is sourced from the Middle East.

- Drone attack prompts UAE refinery shutdown -

A UAE refinery that is one of the world's largest has halted operations as a "precaution" following a drone attack on the industrial complex housing the facility, a source familiar with the matter told AFP.

"The Ruwais refinery has halted operations out of precaution," the source said, requesting anonymity to discuss sensitive matters, after the attack caused a fire in the Ruwais Industrial City where it is based. The source did not say whether the refinery had been hit.

- EU opposes oil Russia sanctions relief -

EU economy chief Valdis Dombrovskis said the European Union did not support removing sanctions on Russian oil despite soaring energy prices.

"We must continue to exert maximum pressure on Russia," Dombrovskis said when asked about US President Donald Trump's announcement he will waive some sanctions on oil, warning easing restrictions would "reinforce Russia's capacity to wage war, undermining Ukraine".

- EU laments nuclear rampdown 'mistake' -

EU chief Ursula von der Leyen has dubbed Europe's turn away from nuclear power a "strategic mistake", as soaring oil prices rekindle concerns about the bloc's energy vulnerability.

"It was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emission power," she said at a nuclear energy summit in Paris.

- SAS airline hikes prices -

Scandinavian airline SAS said it will introduce a "temporary" price increase due to soaring oil prices triggered by the war in the Middle East.

- G7 energy ministers -

G7 energy ministers are to meet Tuesday in Paris to discuss energy policy, French government spokesperson Maud Bregeon told France 2 television.

A.Uhm--SG