Middle East war: Global economic consequences Saturday

Here are the latest global economic developments as the war in the Middle East enters its second month:

Production halted at major Iranian steel plant

Production at a major steel plant in Iran has been halted following U.S.-Israeli strikes, Iranian media reported Saturday.

According to Khuzestan Steel Company, cited by the Iranian daily Shargh, “the plant’s production lines have been stopped” after several units and facilities were hit Friday.

Thailand says it reached Hormuz Strait deal with Iran

Thailand said Saturday it had reached an agreement with Iran to allow its oil tankers to transit safely through the strategic Strait of Hormuz, which has been nearly paralyzed since the start of the war.

“An agreement was reached to allow Thai oil tankers to transit safely through the Strait of Hormuz, helping to ease concerns over fuel supplies to Thailand,” Prime Minister Anutin Charnvirakul said.

Wall Street falls as oil nears $100

U.S. stock markets dropped Friday amid concerns about the prolonged conflict and its impact on inflation and growth. The Dow Jones Industrial Average fell 1.73 percent, the S&P 500 lost 1.67 percent, and the Nasdaq declined 2.15 percent. European markets also closed lower.

Brent crude for May delivery rose 4.22% to $112.57, while U.S. WTI climbed 5.46% to $99.64 and later surpassed the $100 mark in after-hours trading.

The yield on 10-year U.S. Treasury bonds rose to 4.48 percent from 4.42 percent the previous day, reflecting growing inflation concerns.

U-turns in the Strait of Hormuz

Iran’s Revolutionary Guards said they forced three container ships to turn back in the Strait of Hormuz, adding the route is closed to vessels linked to “the enemy.”

“The energy industry is underestimating the upheaval and geopolitical risks ahead of us,” Mark Brownstein, an environmental group vice president, told AFP at the CERAWeek forum in Texas.

Thousands of tons of tea blocked in Kenya

Between 6,000 and 8,000 tons of tea, worth about $24 million, are blocked at Kenya’s port of Mombasa due to the conflict, according to the East African Tea Trade Association.

Kenyan meat and horticulture exports have also suffered losses worth millions of dollars.

Return to coal in Germany

Germany may keep coal-fired power plants running longer if the war continues to disrupt energy supplies, Chancellor Friedrich Merz said.

“We have to supply this country with electricity. I am not prepared to jeopardize the heart of our industry simply because we adhered to phase-out plans that have become unrealistic,” he said.

Air traffic stabilizes but remains reduced

Flight cancellations in the Middle East have declined sharply since the early days of the war, but overall flight schedules remain reduced, according to industry data.

France announces fuel aid

France will provide targeted assistance in April to sectors hardest hit by rising fuel prices. Small road transport companies and fishermen will receive support of 20 euro cents per liter of fuel, while agricultural diesel will be temporarily tax-exempt.

“We are being given a little breathing space. But let’s not kid ourselves and think this will be enough for the industry to recover,” said José Jouneau, head of the Loire fisheries committee.

EU energy ministers to meet Tuesday

Energy ministers from European Union countries will hold a videoconference Tuesday to discuss energy supply security, Cyprus said as it holds the bloc’s rotating presidency.