Middle East war: global economic fallout

Oil rises, stocks fall
Oil prices rose further above $100 a barrel and Asian stocks mostly fell as the Iran war moved into a third week. A barrel of Brent was up almost three percent at nearly $106 in mid-morning trading in Europe.

Crude rose after US President Donald Trump 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.

Trump warned attacks could expand to energy infrastructure if the Islamic republic interferes with transit through the Strait of Hormuz, which has been effectively closed since the US-Israel operations began on February 28.
Japan starts releasing oil
Japan said Monday 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 on March 11 to tap oil stockpiles to cushion the surge in prices caused by the war -- by far the largest-ever response of its kind. The IEA said releases in Europe and North America would start before the end of March.
EU meets to talk energy
Energy ministers from the European Union's 27 nations gathered for talks in Brussels Monday to lay the groundwork for a Thursday summit, where leaders are set to discuss how to help families and businesses deal with soaring energy prices.

Some countries have already announced domestic price caps or cut fuel taxes, while others are pushing for the EU to loosen its carbon-emissions trading scheme and to alter how electricity prices are set.
EU eyes Hormuz naval mission
EU foreign ministers Monday will discuss extending the bloc's Red Sea naval mission to help reopen the Strait of Hormuz, the bloc's top diplomat Kaja Kallas said.

A fifth of the world's crude supplies and a substantial amount of gas normally run through the key waterway.

An option on the table would be to change the mandate of the EU's naval mission in the Red Sea, Operation Aspides, Kallas said. That operation is to defend shipping from attacks by Yemen's Iran-backed Houthi forces.
China maintains talks over Trump visit
Beijing said on Monday it is in talks with Washington over a visit by Trump expected this month, even after the US president suggested he would delay the planned summit with Chinese leader Xi Jinping if Beijing does not assist in reopening the Strait of Hormuz.

Beijing's foreign ministry said Beijing and Washington "are maintaining communication regarding President Trump's visit to China".
Dubai airport resumes flights
Flights gradually resumed at Dubai airport after a "drone-related incident" sparked a fire on Monday.

The latest incident near what is usually the world's busiest airport for international travel affected a fuel tank, the Dubai media office said, later adding that authorities had contained the fire and reporting no injuries.
Drone sets off fire in UAE's Fujairah zone
A drone attack on oil infrastructure on the UAE's east coast sparked a fire on Monday.

"A large fire broke out in the Fujairah Oil Industries Zone as a result of being targeted by a drone, with no injuries reported," Fujairah authorities said, adding "efforts continue to bring it under control".

The site sits on the UAE's Gulf of Oman coast, beyond the Strait of Hormuz.

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