Key events
New Zealand will temporarily permit fuel meeting Australian standards to be supplied domestically for up to 12 months, the government said on Monday, as it seeks to mitigate supply risks linked to the Middle East conflict and soaring prices.
Associate energy minister Shane Jones said the alignment of fuel standards would give importers access to more options and reduce the risk of disruptions.
“This is a sensible, time-limited step that gives importers access to a broader range of fuel shipments, including those already in our region,” Jones said in a statement cited by Reuters.
Asian stocks tumble
AFP is reporting that stocks have fallen while oil prices rose after Donald Trump and Iranian leaders traded threats over the key strait of Hormuz and Israel said the Middle East war could last several more weeks.
The escalation hammered stock markets, with Seoul and Tokyo – which had been the standout performers before the war started – taking the brunt of the selling, shedding as much as six and five percent, respectively, at one point.
Hong Kong shed more than 3%, while Shanghai, Taipei and Manila all lost more than two percent. Sydney, Singapore and Wellington were also deep in negative territory.
South Korea’s won dropped to 1,510 won per dollar, its weakest level since 2009.
Oil prices edged up, with Brent sitting around $112 and West Texas Intermediate just below $100.
Opening summary
Hello and welcome to our live coverage of the US-Israel war on Iran, the broader regional conflict and the impact on the world economy.
The head of the International Energy Agency, Fatih Birol, has said the public needs to understand the “depth of the problem” facing the globe as a result of the war on Iran.
Birol told Australia’s national press club on Friday that the situation was now “very serious”, more so than the two oil crises in 1973 and 1979, and more serious than the gas crisis sparked by Russia’s invasion of Ukraine.
“At that time, in each [oil] crisis, the world has lost about 5 million barrels per day, both of them together 10 million barrels per day. And after that we all know that there were major economic problems around the world. And today we lost 11 million barrels – so more than two major oil shocks put together,” he said.
Plus after Russia’s invasion of Ukraine, the gas markets – especially in Europe – we lost about 75 billion consumer metres (BCM). And as of now, as a result of this crisis, we lost about 140BCM, almost twice. So the situation is, if we want to put in a context, this crisis as it stands now, two oil crises and one gas crash put all together.
Birol added that the crisis was also having a severe impact on other “vital arteries of the global economy”, including petrochemicals and fertilisers, which would have lasting impacts.
In other developments:
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Iranian president Masoud Pezeshkian said “threats and terror” were strengthening Iranian unity, after Donald Trump yesterday warned he would “obliterate” Iranian power plants if the strait of Hormuz was not opened within 48 hours.
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The price of oil increased early on Monday after Trump’s 48-hour ultimatum to Iran – and Israel warned the war would continue for several more weeks. Shortly after the 2200 GMT open, the price of West Texas Intermediate – the US benchmark crude – for May delivery was up 1.8% to just over $100 a barrel, before retreating slightly.
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US treasury secretary Scott Bessent, asked if Trump was “winding” down the war or “escalating” it, told NBC News: “They are not mutually exclusive. Sometimes you have to escalate to de-escalate.” He also said the US government had “plenty of money” to fund the war against Iran but was requesting supplemental funding from Congress to ensure the military was well supplied in the future.
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Lebanon’s health ministry said on Sunday that 118 children and 79 women were among those killed during Israel-Hezbollah fighting, while at least 2,786 others had been wounded, according to the Associated Press. The country’s death toll as of Saturday was 1,024 people.
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The director general of the International Atomic Energy Agency (IAEA), Rafael Grossi, said he hoped to “re-establish” talks between Iran and the US about Tehran’s nuclear program despite the escalating nature of the conflict. “I’ve been having important conversations here at the White House, and also with Iran. There are some contacts, and we hope to be able to re-establish that line,” Grossi told CBS News.
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UK prime minister Keir Starmer and Trump spoke by phone on Sunday evening, according to a statement from the UK government. “The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping.”
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Pope Leo said the death and suffering caused by the war in the Middle East were a “scandal to the whole human family”, as he once again pleaded for an immediate ceasefire. “We cannot remain silent in the face of the suffering of so many people, the defenceless victims of these conflicts. What hurts them hurts the whole of humanity,” Leo said on Sunday at his weekly Angelus prayer in St Peter’s Square.