US President Donald Trump announced on Tuesday that he would reinstitute a maximum pressure campaign on Iran and force its oil exports to zero.
This comes as countries in the Opec alliance continue cuts in production.
Among the orders outlined in the memo on Iran issued by Mr Trump, the Treasury and State departments were directed to start a campaign “driving Iran's oil exports to zero”, Reuters reported. The memo did not describe how the US would do this.
US oil prices pared losses on Tuesday, recouping some due to the tariff friction between Washington and China earlier in the day. US West Texas Intermediate closed 0.63 per cent – or 46 cents – lower at $72.70 per barrel on Tuesday, while Brent crude futures rose 0.32 per cent – or 24 cents – to close the day at $76.20.
“The oil market has not moved substantially since this was announced, which indicates that it was already expected and priced in,” said Justin Alexander of Khalij Economics.
The announcement comes after Opec rebuffed Mr Trump's demands to lower oil prices by increasing output. The alliance announced late last year that its voluntary oil production cuts of 2.2 million barrels per day would continue until March this year.
Once that passes, the supply curbs will be phased out each month until the end of September 2026.
“So, it's a very slow, gradual process still leaves production significantly constrained, particularly for the Gulf states that are participating in the voluntary cuts,” Mr Alexander said.
While Iran is still a long way from near-zero oil exports, experts say that Opec has enough space to absorb the about 500,000 barrels per day that would be taken off the market because of sanctions enforcement.
Rachel Ziemba, a geoeconomic and country risk expert, said real losses could allow Opec to do the easing or speed up the unwinding of the cuts. With the Trump administration still a way from bringing Iran's oil exports down to zero, Opec can afford to carry on with its plans.
Mr Trump's moves follow action by former president Joe Biden during his final weeks in office, in which he placed new energy restrictions on Russia.
“So, I do think one of the other factors is, how tough does the US move towards more extensive maximum pressure at the same time that they're trying to tighten up, put more pressure on Russia?” Ms Ziemba said.
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- Option 2: 50% across three years
- Option 3: 30% across five years
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Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30
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- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
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- Wear hamdania for work, always wear a ghutra and agal
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US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
