As Iran proxies activate in Yemen and Iraq, Trump’s Mideast morass deepens
Two of the most important corridors for international energy shipments are blocked by Iran and its proxies, oil prices are up and the global economy is reeling.
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Two of the most important corridors for international energy shipments are blocked by Iran and its proxies, oil prices are up and the global economy is reeling.
President Lee Jae Myung reassured Koreans on Saturday that the government is taking all necessary measures to stabilize oil prices amid a surge in global crude prices caused by escalating tensions in the Middle East. In a post on the social media platform X, Lee highlighted the government's efforts to diversify crude oil imports to reduce the country's reliance on the Middle East, with the region's share of imports falling from about 70 percent to 50 percent. He also cited measures including oil price caps, export controls and a strategic oil reserve swap system. Lee reaffirmed the government's commitment to cracking down on oil hoarding and price collusion, while compensating local refiners for losses stemming from government price stabilization measures. "You don't have to worry about oil prices at all," Lee wrote. The remarks came as disruptions in the Red Sea and the Strait of Hormuz fueled concerns over global energy supplies, pushing oil prices back above $100 per barrel. Adding to the supply concerns, Saudi Arabia shut down its East-West pipeline after the key oil conduit came under
Austrian central bank governor Martin Kocher says risk of elevated inflation is higher than it was a few months ago
Gold prices firmed over 1 percent on Friday, rebounding from recent losses and finding a short-term floor despite strong U.S. inflation data bolstering expectations of an interest rate hike by the Federal Reserve next week. Spot gold rose 1.2 percent to $4,366.69 per ounce by 11:22 a.m. EDT (1522 GMT). The metal, however, was down about 1.4 percent for the week so far. "Gold is recovering rapidly after a brief dip, as CPI data may be cementing expectations of a Fed rate hike next week. The volatility is somewhat muted, as market had a hike 70 percent priced in," said Tai Wong, an independent metals trader. "Price action here suggests that gold is finding a short-term base after the recent retreat." U.S. gold futures gained 0.1 percent to $4,409.30. Prices fell nearly 2 percent on Thursday after the U.S. Producer Price Index data showed prices increased in line with expectations in August. The Consumer Price Index increased 0.4 percent last month after edging up 0.1 percent in July, the labor department's Bureau of Labor Statistics said on Friday. Oil prices fell on Friday, but remained on c
NEW YORK — U.S. stocks are rebounding Friday and clawing back much of their losses for the week after oil prices eased off their recent spurt. An update on inflation across the United States that came in close to economists’ expectations, even if prices are still rising too quickly for everyone's liking, also helped calm the market. The S&P 500 climbed 1 percent and was on track to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average was up 479 points, or 0.9 percent, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 1.2 percent higher. They got help from a pullback in oil prices, which had jumped to their highest levels since May because of the ongoing war with Iran. The price for a barrel of Brent crude, the international standard, fell 2.5 percent to $104.93 after getting near $110 overnight. That took a bit of pressure off inflation, which remains stubbornly high. A report on Friday showed that U.S. consumers had to pay prices for gasoline, food and other costs of living that were 3.4 percent higher last month than a year earlier. Whi
Resilient start to third quarter comes as surging oil price reignites inflation fears
Inflation remained stubbornly elevated at 3.4% in August at the end of a week of surging oil prices
Korea's economy continues to show solid signs of recovery, supported by robust exports and improving domestic consumption, the finance ministry said Friday. The Ministry of Finance and Economy offered the assessment in its monthly economic report, known as the Green Book, maintaining its positive assessment from the August report while noting that uncertainties surrounding the war in the Middle East persist. "Recently, the South Korean economy has been showing solid signs of recovery, supported by a substantial increase in exports and improving domestic consumption," the report said. Korea's exports surged 68.7 percent in August from a year earlier, buoyed by strong semiconductor shipments. "However, as uncertainties related to the war in the Middle East have widened somewhat, pressure on people's livelihoods continues amid inflation caused by high oil prices and employment difficulties faced by vulnerable groups and sectors," it added. In August, Korea added 184,000 jobs from a year earlier, while the unemployment rate remained unchanged at 2 percent. The increase marked the largest gain
Decline in oil prices helps calm investor nerves but German borrowing costs hit highest level since 2009
In recent weeks, the United States has succeeded in loosening Iran's grip over the Strait of Hormuz while virtually shutting down Iran's own oil exports, accelerating its economic free fall. But the war launched by the U.S. and Israel in February — intended to last a few weeks — is still far from over, and the stalemate is costly for both sides. An agreement reached in June quickly crumbled , with no sign of diplomatic progress since then. Low-level fighting persists, and the U.S. does not seem to have an exit strategy. The mounting economic pressure on Iran has yet to stoke an uprising, and if its leaders are backed into a corner, they may opt for military escalation rather than capitulation. Their Houthi allies in Yemen have meanwhile stepped up attacks on Saudi Arabia , helping to push oil prices back up. The price of a barrel of Brent crude, the international benchmark, surged above $100 this week, and diesel — heavily used in transport and farming — hit a record, potentially stoking inflation. U.S. President Donald Trump has acknowledged that gas prices are likely to stay h
Global interest rate hikes are predicted as oil prices spark inflation fears.
DALLAS — Support for President Trump is dropping among millennials and Gen Zers — particularly young men. Vice President Vance is in charge of getting them back in the midterms.Why it matters: The 42-year-old Vance, the first millennial VP, capped off the GOP's two-day convention here with a direct appeal to families with young children that emphasized the "birthright" of U.S. citizens.Vance also sought to cast Democrats as anti-American, anti-family "crazies.""America belongs to those who love it. Not those who hate it," he said.Zoom in: Support for Republicans is slipping across all age brackets, but the disapproval among millennials and young men is an acute concern for Trump's political operation because they were crucial to his 2024 victory.Millennials, born between 1981 and 1996, are the largest generation in America.They're also the cohort with the largest number of school-age kids — and particularly feel the bite of higher food and gas prices, driving forces behind Trump's low poll numbers.In his 41-minute speech, Vance established his millennial bona fides by mentioning that he's now the father of four young children who share in the "birthright ... to inherit the blessings of the greatest country on Earth."Vance's speech fell on the one-year anniversary of the assassination of his friend and ally, MAGA activist Charlie Kirk, who was 31 when he was shot during an appearance at a Utah college."Charlie spoke to young men in particular," Vance said. "He understood that there was no greater calling for a young man ... than falling in love, starting a family and becoming a father."In contrast, Vance pointed to the now-deleted social media posts of a Michigan Democratic congressional candidate, William Lawrence, who once posted "fuck ... the nuclear family." Vance also attacked Democratic Texas Senate candidate James Talarico and suggested he was too obsessed with transgender kids: "I never want to see that guy's web browser history."The vice president also took umbrage with Michigan Democratic Senate candidate Abdul El-Sayed for suggesting that Vance's now-deceased grandfather wouldn't have loved the vice president's wife, Usha, because she is of Indian heritage. In the midst of accusing the left of opposing the "birthright" of American children, Vance was interrupted by a demonstrator waving a Mexican flag in the American Airlines Arena."Well, my friend, if you love Mexico so much, get your ass over there. I'll buy you the plane ticket," Vance said to the loudest cheers of the night for him.Behind the scenes: Earlier in the day, Vance addressed a closed-door room of Republicans and emphasized the need to talk up the administration's record on lowering costs for prescription drugs — and to attack Democrats."We have to remind the American people of all the good things that we're doing. And number two, we have to remind the American people of how effing crazy the Democrats have become over the past couple of years," Vance said.Friction point: Vance obliquely touched on the major source of the administration's unpopularity — Trump's war in Iran and the high prices it's caused — and asked undecided and unsure voters to overlook it."I'm asking you to do what Charlie did: Do not throw the baby out with the bathwater."Meanwhile, oil prices rose this week to more than $100 a barrel, and diesel in some California gas stations is almost $10 a gallon.Mortgage rates are rising and the administration's efforts to stop the jumps have proven feckless so far.And on Thursday, Houthi rebels in Yemen were closing in on a strategic Red Sea port that could threaten more oil tankers and cause oil prices to skyrocket even more.The other side: Democrats and other critics say the administration's policies, from cutting Medicaid to gutting other programs for kids, are anti-family.The big picture: The Dallas convention was all about Trump, not Vance. And it was about the upcoming Nov. 3 elections — not the passing of a torch, which Trump is loath to talk about as he nears his final two years in the White House.Vance officially hasn't decided whether he'll run for president in 2028, but few insiders believe he won't. "The president will hand over the keys to JD on Inauguration Day, but it's not a topic of discussion," one Trump adviser said. "This about winning this November."What's next: Vance and Trump plan to hit the campaign trail to support as many as 35 congressional candidates and a dozen Senate campaigns."I'm going to go to every one of those states for congressmen and for senators," Trump said Wednesday night. "And we're going to have rallies just like this."Between the lines: Vance is younger than any member of Trump's Cabinet, the freshest face in an administration led by the oldest person ever elected to the presidency — Trump, an 80-year-old Baby Boomer."The dynamic you're seeing play out in the administration between the young millennial leader and the boomer is happening in corporate boardrooms across America," an administration political adviser said."JD is uniquely qualified to talk to parents with young families. He's one of them, so this is only the start."
The KOSPI edged lower Friday amid rising oil prices as renewed geopolitical tensions in the Middle East fueled concerns over inflation. The benchmark index opened 3.29 percent lower at 6,802.50 and pared some of its losses in afternoon trading before closing at 6,909.91, down 1.76 percent from the previous session. Foreign investors sold a net 2.29 trillion won ($1.70 billion) worth of shares, while institutional investors sold a net 1.22 trillion won. Retail investors were the net buyers, purchasing 1.87 trillion won worth of shares. Market bellwethers also fell. SK hynix fell 2.21 percent to close at 1.812 million won, while Samsung Electronics lost 3.35 percent to finish at 259,500 won. With little prospect of negotiations between Iran and the United States resuming in the near term, international oil prices continued to rise. West Texas Intermediate and Brent crude futures climbed above $100 per barrel, adding to concerns over inflation. Concerns over inflation were also heightened after the U.S. producer price index rose 5.4 percent in August from a year earlier, Thursday (local time
Saudi Crown Prince Mohammed bin Salman (MBS) called President Trump twice Thursday, urging him to launch strikes against the Houthis as the Iran-backed group closed in on a vital Red Sea chokepoint, two U.S. officials told Axios.Trump declined, and U.S. officials stressed the administration has no plans to intervene directly against the Houthis for now.Why it matters: Oil prices surged Thursday as the Houthis seized a strategic coastal city in Yemen, pushing them closer to the Bab al-Mandab Strait — a vital artery for global trade and Saudi oil exports.With Iran already disrupting traffic through the Strait of Hormuz, Houthi control of Bab al-Mandab could give Tehran a powerful new point of leverage over the U.S. and its Gulf allies.Driving the news: The U.S. is concerned about the rapidly escalating fight in Yemen and is stepping up support for Saudi Arabia while trying to avoid direct military involvement.Adm. Brad Cooper, the commander of U.S. Central Command, traveled to Saudi Arabia on Thursday for urgent coordination meetings, two sources with knowledge of the matter said.The Saudi embassy in Washington and the White House declined to comment. Catch up quick: The Saudi-Houthi confrontation reignited in July after Riyadh prevented an Iranian plane carrying senior Houthi officials home from the funeral of former Iranian Supreme Leader Ali Khamenei from landing in Sanaa.MBS asked Trump for political backing to strike the Sanaa airport, but made clear Saudi Arabia did not need U.S. military assistance. Trump gave him his support.The Houthis retaliated by attacking Saudi tankers in the Red Sea, threatening a crucial route for the kingdom's oil exports, and later expanded their attacks to Saudi energy facilities.Saudi Arabia and its Yemeni allies responded with airstrikes and ground offensives against Houthi positions.Behind the scenes: Saudi Arabia's request for direct U.S. military action marks a sharp reversal from July, when Riyadh told Washington it could handle the Houthis on its own.As the fighting intensified, however, the Saudis began seeking increasing levels of U.S. support.U.S. military and civilian officials have told their Saudi counterparts in recent weeks that Trump's directive is to keep American forces focused on Iran and the Strait of Hormuz — and avoid opening another front, sources familiar with the discussions said.On Thursday, as Houthi forces advanced on the coastal city of Mokha and Saudi-backed Yemeni forces retreated, MBS called Trump to brief him on the deteriorating situation, U.S. officials said.Several hours later, MBS called again and urged Trump to order U.S. strikes against the Houthis.Trump declined, but a U.S. official said the administration will provide Saudi Arabia with intelligence on the Houthis and targeting data.Roughly 200 U.S. military personnel are already in Saudi Arabia providing non-kinetic support, the official said.What they're saying: A senior Trump administration official signaled that Washington's priority is keeping the Red Sea open while leaving the broader fight to its regional partners."The United States is focused on protecting our core national security interests — such as ensuring freedom of navigation in the Red Sea — while empowering our regional partners to take the lead in managing and resolving regional security challenges," the official said."We are in continuous dialogue with Saudi Arabia and the Republic of Yemen Government regarding regional stability."
Seoul shares narrowed losses late Friday morning helped by retail buying amid investor concerns over possible rate hike by the U.S. Federal Reserve due to higher oil prices. After opening 3.29 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) narrowed the losses, dropping 157.18 points, or 2.23 percent, to 6,876.74 as of 11:20 a.m. Individuals bought a net 1.68 trillion won ($1.24 billion) worth of stocks, while institutions and foreigners sold a net 1.04 trillion won and 1.31 trillion won, respectively. Overnight, surging oil prices sparked a sell-off in U.S. stocks amid escalating tensions in the Middle East. The Dow Jones Industrial Average fell 0.6 percent, while the tech-heavy Nasdaq Composite declined 0.65 percent. The U.S. producer price index rose 0.4 percent in August from a month earlier, while investors are awaiting Friday's consumer price report for clues about the Fed's future rate path. In Seoul, tech stocks led the decline. Market bellwether Samsung Electronics fell 4 percent, and its chipmaking rival SK hynix declined 3.45 percent. Top carmaker Hyundai M
Seoul shares opened sharply lower Friday, tracking losses on Wall Street, as the latest U.S. inflation data raised the possibility of the U.S. Federal Reserve raising interest rates to curb inflation. After opening 3.29 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) narrowed the losses, dropping 183.12 points, or 2.6 percent, to 6,850.80 as of 9:15 a.m. Overnight, surging oil prices sparked a sell-off in U.S. stocks amid escalating tensions in the Middle East. The Dow Jones Industrial Average fell 0.6 percent, while the tech-heavy Nasdaq Composite declined 0.65 percent. The U.S. producer price index rose 0.4 percent in August from a month earlier, while investors are awaiting Friday's consumer price report for clues about the Fed's future rate path. In Seoul, tech stocks led the decline. Market bellwether Samsung Electronics fell 3.5 percent, and its chipmaking rival SK hynix plunged 4.48 percent. Top carmaker Hyundai Motor dropped 2.57 percent, and leading battery maker LG Energy Solution shed 0.68 percent. Among gainers, state-run utility Korea Electric Power Corp.