17/03/2026

BIZ & FINANCE TUESDAY | MAR 17, 2026

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Oil rises further above US$100, most stocks fall

HONG KONG: Oil prices jumped further above US$100 yesterday and Asian stocks mostly fell as the Iran war moved into a third week with both sides showing no sign of backing down and diplomats trying to ensure safe passage for tankers through the crucial Strait of Hormuz. Crude shot up in the opening minutes after the US president said at the weekend that forces struck military targets on Kharg Island, a scrubby stretch of land in the Gulf that handles almost all of Iran’s oil exports. He also warned attacks could expand to energy infrastructure if the Iran interferes with transit through Hormuz, which has been effectively closed since the US-Israel operations began on Feb 28. Iran’s Fars news agency reported soon after that no oil infrastructure was damaged in strikes. Trump urged other countries to send warships to keep the waterway open but offered no specifics or commitments from the US side, saying he hoped China, France, Japan, South Korea and the UK would take part. He later wrote in a Truth Social post: “The Countries of the World that receive Oil through the Hormuz Strait must take care of that passage, and we will help TP A LOT! “This should have always been a team effort, and now it will be.” However, Japan said yesterday it was “not at the moment considering issuing a maritime security operation”, while Australia announced it would not send any navy ships to the region. Trump said Tehran wanted a deal to end the fighting, but that he was not prepared to make one on current terms, without giving further details. Iran’s Foreign Minister Abbas Araghchi said his country was not interested in talks with Washington. “We don’t see any reason why we should talk with Americans, because we were talking with them when they decided to attack us,” he told CBS’s Face The Nation in an interview aired on Sunday. “We never asked for a ceasefire, and we have never asked even for negotiation.” However, the minister did say he was ready to speak to countries “who want to talk to us about the safe passage of their vessels”. “I cannot mention any country in particular, but we have been approached by a number of countries” seeking such safe passage, he said. The two sides continued to exchange fire yesterday, with Saudi Arabia saying it had intercepted more than 60 drones since midnight, while flights were temporarily suspended at Dubai’s airport after a “drone-related incident” sparked a fire nearby. Araghchi described Israeli strikes on Tehran fuel depots as “ecocide” owing to the long-term risks to residents’ health. Traders hoping for an early end to the conflict were left disappointed after Trump’s top economics adviser Kevin Hassett said the Pentagon estimates it could take up to six weeks, though the operation was ahead of schedule. Both main crude contracts advanced, with

o Iran war moves into third week with both sides not backing down

Activists hold placards, during a rally against the US demand for South Korea to deploy troops to the Strait of Hormuz, outside the presidential Blue House in Seoul yesterday. – REUTERSPIC

And delayed figures showed the Federal Reserve’s preferred inflation gauge dipped to 2.8% in January before energy prices shot higher. “Developments over the weekend, while no more disconcerting than at the end of last week, don’t offer any obvious pretext for a less pessimistic start to the new trading week,” warned National Australia Bank’s Ray Attrill. Also in view this week are policy meetings at seven major central banks including the Fed, Bank of England and the European Central Bank. While they are expected to stand pat on interest rates, any remarks on the impact of the war on their respective economies will be closely followed. – AFP to monitoring service Fuel Watch. Diesel has reached higher, an average A$2.62. Hussein Dia, professor of transport technology at Swinburne University of Technology, said “panic buying is a big issue”. “In rural areas it is more acute. They are running out of fuel and diesel,“ he told AFP. Mohammad Afzali, an air conditioner mechanic who fills up his van every two days as he drives to customers, said his petrol costs have doubled. It’s a squeeze so tight Mohammad says he is considering stopping his business as a result. “Its very hard. Everything is so expensive,“ he said. “If prices keep going up, what should I do?” – AFP

down, though Hong Kong, Seoul and Singapore rose. London, Frankfurt and Paris rose at the open. “The impact of geopolitical events on markets, and the macro outlook, hinges more on when transits through the Strait of Hormuz begin to normalise, than it does on when hostilities come to an end,” wrote Michael Brown at Pepperstone. “The longer the Strait is impassable, the tighter commodity supply will become, thus the higher prices will likely go, and the greater the inflationary impulse that will follow.” Adding to economic concerns was data showing Friday that fourth-quarter US gross domestic product expanded 0.7%, much slower than the initial reading of 1.4%.

Brent up around 3% to as high as US$106.50 before paring the gains to about US$104, while West Texas Intermediate climbed more than 2% to top US$100. The rise came as Japan said it was beginning the release of its strategic oil reserves after the International Energy Agency indicated earlier that the release would begin in Asia and Oceania before other regions. IEA members agreed last week to release a record 400 million barrels from stockpiles to cushion the surge in prices caused by the war. With worries growing about a possible energy crisis that could hammer the global economy, equity markets remained under pressure. Tokyo, Shanghai, Sydney, Wellington, Taipei, Manila, Mumbai, Bangkok and Jakarta were all

Australians feel petrol pinch as panic buying drives shortages SYDNEY: The cheapest fuel had run out and a man filled red jerry cans at a petrol station on Sydney’s metropolitan fringe yesterday as drivers anxious about soaring prices queued up. Panic buying since Iranian attacks on ships effectively closed the Strait of Hormuz in response to the US-Israeli strikes has seen petrol prices soar half a world away in Australia – even as the government insists fuel shipments are arriving on schedule. from Asia, with many accustomed to driving vast distances for work or leisure. In its most populous state of New South Wales – home to sprawling metropolitan Sydney – census data shows 1.6 million people drove to work, compared to just over 140,000 taking public transport. As the oil price soared past US$100 a barrel, government data showed Australia had 37 days’ supply of petrol and 30 days supply of diesel. rural town where she said farmers are worried about diesel shortages impacting crops and food supply. “There are trucks off the road all over the country. Big diesels are the backbone of Australia,“ she said.

Chris Harald said he “had a heart attack” when he stopped to refuel after driving 400km from the coast to Penrith to visit family. “If we still have fuel in the country, why has all that fuel gone up? “It’s disappointing to see,“ he told AFP after filling up with diesel. Nearby, a price board showed the cheapest petrol type had sold out for the day. Average fuel prices in New South Wales have surged from A$1.60 (RM4.40) a litre a month ago to A$2.23, according

“I can drive up to 500km a week,“ said landscaper Emma Futterleib as she filled up her diesel pickup at a service station in Penrith on the western outskirts of Sydney. “It hurts the budget, that’s for sure. Just trying to be a bit careful on how much we are spending on groceries,“ she said. Australia is heavily reliant on fuel imports

Yet price gouging by retailers combined with a doubling of demand as motorists stockpile fuel has seen “real and unacceptable shortages”, Energy Minister Chris Bowen said at the weekend, after the government moved to increase supply to rural areas. Futterleib told AFP she drove an hour from a