26/03/2026

BIZ & FINANCE THURSDAY | MAR 26, 2026

READ OUR

HERE

16

Malaysian Paper

/thesun

Crude tumbles on hopes for Iran war de-escalation

Colombia seeks coalition for fossil fuel phase-out RIO DE JANEIRO: Colombia plans to lead the formation of a global coalition of nations at an international meeting in April that want to end the use of fossil fuels, the country’s Environment Minister Irene Velez said on Tuesday. The conference, organised by Colombia and the Netherlands, will come as the world is facing an “extreme energy crisis” due to the war in the Middle East, which has driven up oil prices and sparked fears of a global economic crisis, Velez said. Colombia’s goal is to establish a “coalition of those of us who possess the will to eliminate fossil fuels” and are “ready for action”, she said during an online meeting with journalists organised by the Climate Observatory, a Brazilian network of NGOs. Velez said 45 countries had confirmed their attendance at the meeting in the city of Santa Marta on April 28 and 29. She said attendees would include major hydrocarbon producers from Europe and North America, but did not give further details. The gathering was organised during last year’s COP30 meeting in Belem, Brazil, as interested nations sought to bypass a lack of consensus between around 200 participating nations over the transition away from fossil fuels, a major driver of greenhouse gas emissions. Velez said she hoped California Governor Gavin Newsom, a leading figure in the opposition to the dismantling of climate policies spearheaded by Donald Trump, will attend the conference. – AFP Vietnam lowers fuel prices after diesel doubled HANOI: Vietnam adjusted its fuel prices for a second time yesterday, bringing down costs after the price of diesel was more than doubled since the start of the war in the Middle East, Trade Ministry figures showed. Earlier yesterday, diesel prices had skyrocketed about 105% from Feb 26, two days before the US and Israel launched strikes on Iran. The government raised the price to 39,660 dong (RM5.95) per litre as of midnight, up from 19,270 dong last month, according to trade ministry figures. The price of 95-octane petrol was also raised nearly 68% over the same period. But, 14 hours later, the ministry revised down fuel prices, with the cost of diesel lowered to a rate that is just below double that of the Feb 26 price. The cost of 95-octane petrol was also reduced, and is now about 49% higher than before the Gulf war. Vietnam has recently asked for fuel support from several countries, including Qatar, Kuwait, Algeria and Japan, and on Monday signed a deal with Russia on oil and gas production in both countries. – AFP

discussions around raising the US enlistment age from 34 to 42, point to continued preparation and an increased presence in the region, which in Trump’s thinking could increase the pressure on Iran to forge an agreement in the reported upcoming talks.” And the economic impact is becoming increasingly clear. Vietnam raised the price of diesel yesterday to 39,660 dong (RM5.95) per litre, meaning it had more than doubled since the war started. Data on Tuesday showed business activity in the eurozone slowed significantly in March as energy prices surged and global supply chains were hit, while France’s INSEE statistics agency trimmed its growth forecast for the first and second quarters of this year. Philippine President Ferdinand Marcos declared a state of “national energy emergency”, citing risks to domestic supplies, and Sri Lanka ordered street lights, neon signs and billboard lighting to be switched off. Bangladesh raised jet fuel prices 79% and Ireland slashed the excise duty on petrol and diesel to stem surging prices at filling stations. – AFP

The Israeli report also said Iran would see an end to all sanctions and receive assistance in developing civil nuclear energy. Meanwhile, Tehran, in a message circulated by the International Maritime Organisation, assured safe passage through the strait to “non-hostile vessels”. Iran already said it was not targeting friendly nations. Equity traders pounced on the developments, with Tokyo, Seoul, Shanghai, Hong Kong, Sydney, Singapore, Mumbai, Bangkok, Jakarta, Wellington and Taipei all well up. London, Paris and Frankfurt rose at the open. An extra boost came from International Energy Agency boss Fatih Birol’s comments that he was “ready to move forward” with an additional release of oil reserves “if and when necessary”. Pepperstone’s Chris Weston warned that “developments on the ground do not fully support a de-escalation narrative”. “Reports that the 82nd Airborne Division could deploy around 3,000 troops to the Middle East, alongside

officials were “in negotiations right now”. However, both pared the losses as the day wore on. Speaking to reporters in the Oval Office, Trump said Iran “did something yesterday that was amazing actually”. “They gave us a present and the present arrived today. And it was a very big present worth a tremendous amount of money. “That meant one thing to me – we’re dealing with the right people.” He did not explain further but said it related to the Strait of Hormuz, through which a fifth of global oil and gas flows and which Iran has largely blockaded, sending global energy prices soaring and fuelling fears of another surge in inflation. The New York Times quoted unnamed officials saying that Washington had sent a 15-point peace proposal via Pakistan. Israel’s Channel 12 said that Trump was suggesting a one-month ceasefire during which they would discuss handing over Iran’s enriched uranium and banning further enrichment, while Tehran would also ensure safe passage through the Strait of Hormuz.

Iran has virtually shut the Strait of Hormuz, choking a vital transit route for oil and gas – as well as fertilisers. A third of the world’s fertilisers normally transit the strait, and the disruption has prompted multiple warnings about the impact on food production. “Fertilisers are the number one issue of concern today. If there is no more fertiliser, there is an impact on quantities but also on prices,“ WTO deputy director-general Jean-Marie Paugam told AFP in an interview in Yaounde. “The effect compounds the following year: harvests shrink and prices rise.” The Gulf’s ample supplies of natural gas, a key ingredient in artificial fertilisers, have made the region a major manufacturer. But production has been severely impeded by the war, with some major facilities forced to shut down. Major food exporters such as India, Thailand and Brazil depend on the Gulf for urea, a nitrogen-based fertiliser, making them vulnerable. Because the war is only a few weeks old, there is currently no fertiliser shortage, Paugam said. “But if fertilisers from the Gulf do not circulate, we will feel a direct impact on supplies to major producer countries just as planting seasons begin for the crops that will be harvested next year,“ he said. “If the Strait of Hormuz is blocked HONG KONG: Oil prices tumbled and stocks rose yesterday after reports that Washington sent a peace plan to Iran, while Tehran announced it will let “non-hostile” oil vessels through the crucial Strait of Hormuz. After nearly four weeks of conflict, investors jumped on the first signs that hostilities could wind down, though analysts pointed out that the arrival of more US troops in the Middle East suggested the chance of escalation remained. The economic impact of the crisis has begun to bite around the world, with governments looking to cut energy consumption. Both main crude contracts plunged more than 6% – with Brent back below US$100 – after US President Donald Trump voiced optimism at ending the war and said o Washington sends peace plan, Tehran opens strait to ‘non-hostile’ ships

Top WTO official sounds fertiliser warning YAOUNDE: Disruptions to fertiliser supplies caused by the Middle East war pose a double threat to global food security through scarcity and high prices, a top World Trade Organisation official has warned.

Workers handle sacks of fertiliser for export at the Chinese port of Yantai. – AFPPIC

for three months, the impact will be significant.” Net food-importing countries would be in a very bad position, including “a large part of west Africa and north Africa”, Paugam noted. This effect can be amplified if

towards eliminating hunger by 2030, one of the goals adopted by UN member states in 2015. “But with the risks linked to the war in the Middle East, there is once again a risk of falling off track,“ Paugam warned. – AFP

countries start stockpiling, as happened during disruptions to international trade at the height of the Covid-19 pandemic. Covid set back the fight against hunger worldwide. Since then, the world returned to its trajectory