World

OIL headed for a substantial weekly drop as the US-Iran interim peace deal saw shipping through the Strait of Hormuz start to return to normal, easing the global crude market’s biggest ever supply shock.

West Texas Intermediate steadied near US$77 a barrel, trading near the lowest since early March after tumbling by almost 10% this week. Brent was below US$80. Ships carrying stranded oil began making their way out of the waterway on Thursday, while Kuwait said it will start ramping up production.

US Central Command said that it had lifted its blockade on traffic to and from Iranian ports and coastal areas, while the Joint Maritime Information Center, a key naval information body, advised ships seeking to pass through the waterway to use a route near the Oman coastline to try and avoid mines.

US President Donald Trump hailed the developments, pushing back against criticism from Iran hawks, including some allies, that the deal conceded too much to Tehran. “The Markets are loving what is happening with Oil Prices way down, and Stocks way up,” Trump posted on social media.

Crude’s selloff means that futures have given back almost of the gains triggered by the war, which erupted in February when the US and Israel attacked Iran over its nuclear programme. The strait — which connects the Persian Gulf to global markets and normally carried about a fifth of global oil supply — had been subject to a double blockade by both Tehran and the US.

Vice President JD Vance downplayed concerns Iran could eventually impose tolls on traffic through the strait, a move that could turn the chokepoint into a money maker for Tehran. He also said a 60-day clock for working out the contentious details in the memorandum of understanding had started ticking. — BLOOMBERG

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KUALA LUMPUR — Oil tankers sailed through the Strait of Hormuz and the United States said it lifted its blockade on Iran on Thursday as an interim deal to end the war took effect, though key issues are still unresolved between the two countries.

Oil prices dropped to their lowest level since the war began on February 28, as analysts said exports through the strait, which handles about one-fifth of global oil supply, could return to normal in the coming months.

But Israel continued its war against Hezbollah in Lebanon, raising questions about whether the agreement would hold.

In Washington, some of President Donald Trump’s Republican allies in Congress questioned whether he had given up too much in order to end the conflict, which is unpopular with US voters.

Iran’s Supreme Leader Ayatollah Moitaba Khamenei said Trump signed the deal “out of desperation” and signaled that upcoming talks over Iran’s nuclear programme – Trump’s stated reason for starting the war – would not be easy.

“If the American side wants to be too demanding, we will not accept it,” he said in a written message.

The deal gives negotiators 60 days to reach agreement on the status of Iran’s nuclear programme, and set up a US$300 billion reconstruction fund for Iran and other financial incentives.

US Vice President JD Vance, who will lead the US delegation, said Washington will also seek to limit Tehran’s long-range missiles.

When he launched the war nearly four months ago, Trump said he aimed to destroy Iran’s nuclear weapons programme, end its ability to strike its neighbours, prevent it from supporting allied militants in the region and make it possible for Iranians to topple their hardline leaders.

Though he initially demanded Iran’s “unconditional surrender,” Trump ultimately signed the agreement with none of those objectives met.

US officials say the negotiations could still yield a strong agreement on Iran’s nuclear programme. But critics say Iran is in a stronger position now, having withstood a superpower attack, exerted control of the Strait of Hormuz and gained valuable waivers to financial sanctions.

Iran signaled it will still exert control over the strait, saying it will issue permits and direct traffic during the 60-day period, though no fees will be charged during that time.

But in Lebanon, where more than a million people are displaced by the fighting, Israeli forces launched fresh airstrikes early on Thursday, raising doubt about how far Trump will go to force his wartime allies to halt an offensive he has now pledged to end.

Trump said he expects a complete ceasefire on all fronts. “The United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold,” he said on social media.

The deal calls for the “permanent termination” of the war in Lebanon and for its “territorial integrity and sovereignty” to be ensured.

Israel, which was not part of the negotiations, has said it has no intention of withdrawing from Lebanon and released a new map showing an expanded occupation zone.

Trump has become openly critical of Israel’s operations in Lebanon, leading to one of the biggest rifts between the two countries in decades.

Vance warned Israel to respect the peace process.

“If I was in the cabinet of the Israeli government, I might not be attacking the only powerful ally that I have anywhere left in the entire world,” he said at the White House. — REUTERS-BERNAMA

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ISLAMABAD — Pakistan and Iran on Thursday reaffirmed their commitment to advancing regional peace during a high-level telephone call, the first such contact since the signing of the new US-Iran peace deal, which Pakistan mediated, Anadolu Ajansi (AA) reported.

The call between Pakistan’s Prime Minister Shehbaz Sharif and Iranian President Masoud Pezeshkian lasted over a half-hour and focused on implementation of the newly signed agreement and the future direction of Pakistan-Iran relations, according to a statement issued by the prime minister’s office.

Sharif congratulated Pezeshkian, the Iranian leadership, and the people of Iran on what he described as a “historic peace deal,” saying it would help restore stability in the region and support Iran’s national rebuilding efforts while deepening bilateral cooperation.

Pezeshkian, on behalf of the Iranian nation and himself, thanked Pakistan and Chief of Army Staff Field Marshal Syed Asim Munir for their “critical role” in facilitating the mediation process, praising Islamabad’s efforts as constructive and sincere.

He said Iran would always remember Pakistan’s support during difficult times and expressed Tehran’s readiness to expand cooperation across the political, economic, and regional fields.

The leaders agreed that the peace deal marked a new chapter in bilateral ties and stressed the importance of maintaining momentum in its implementation.

They also agreed to pay reciprocal visits to each other’s capitals at the earliest opportunity and to remain in close contact in the coming days to coordinate further steps.

Separately, Sharif postponed a planned trip to Switzerland for a signing ceremony as the deal had already been signed and was under implementation, according to state-run Pakistan TV.

According to Pakistan, which mediated between the two warring sides, the deal entered into force with “immediate effect” after US President Donald Trump and Pezeshkian electronically signed it overnight on Wednesday/Thursday.

Sharif, who announced the signing of the deal, known as the Islamabad Memorandum of Understanding, said Iran will instantly “reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade.”

Sharif also signed the agreement. — BERNAMA-ANADOLU

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SpaceX shares slipped in premarket trading, putting them on track to fall for a second straight day as it wraps up its first week as a public company following a record initial public offering.

The stock fell as much as 3.5% as of 8:25 a.m. in New York after initially rising 2% at the open of trading. The move is set to extend Wednesday’s nearly 5% decline, the first down day for shares after they jumped 49% across their first three days of trading. Still, the rocket and AI company remains on track to end the week nearly 40% above its $135 IPO price.

Volatility is likely to continue as investors weigh lofty expectations for future revenue growth without a clear path to achieving them, according to Michael Monaghan, partner and portfolio manager at Founder Funds in Dallas, which holds shares of SpaceX.

“We got very comfortable owning this stock because we could see $200 billion of revenue in 2030,” he said, noting even higher estimates elsewhere. “But literally and figuratively you need a rocket to go get those revenues.”

That view was echoed by Arete Research’s Andrew Beale, who initiated coverage on the stock Thursday with a buy rating and $401 price target, implying it will more than double from where it currently trades.

“We think fundamentals and SpaceX’s long-term growth potential will drive investor interest,” Beale said. While he forecasts that the firm will top $200 billion in revenue by 2030, he cautioned that the path there won’t necessarily be entirely smooth sailing.

“Space is hard and timelines can slip with launch anomalies, technical challenges, environmental concerns and any number of other factors, so all estimates should be treated with a wide degree of caution,” he added.

Despite the rocky few sessions of trading, shares may be about to get some support from index inclusions in the weeks ahead. SpaceX will be eligible to be added to the Nasdaq 100 index after 15 days of trading thanks to Nasdaq Inc. changing its rules to allow faster entry to megacap IPOs. FTSE Russell and MSCI Inc. made similar changes to allow early addition into their gauges.

As a result, about 30% of SpaceX’s free float is set to be owned by passive investors just two weeks after the IPO, according to Intropic, a provider of index-rebalancing forecasts. That demand, combined with its low float — as lockups keep insiders from selling shares for months — could put upward pressure on SpaceX shares. –BLOOMBERG

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MICROSOFT Corp.’s Azure and Amazon Web Services are on a collision course with the European Union’s tough digital competition rulebook, after an initial probe into their power over the cloud.

The European Commission is set to unveil its preliminary findings as early as next week, stating that AWS and Azure seem to meet the requirements to face the bloc’s Digital Markets Act, according to people familiar with the matter who spoke under condition of anonymity.

The people added that a final decision — after the early-stage findings — is expected by the end of this year but that timings could still change. Should the Big Tech services eventually face the full force of the law, they would face a range of obligations, including interoperability requirements and curbs on customer lock-in and self-preferencing.

The commission and Microsoft declined to comment. AWS didn’t immediately respond to a request.

The Brussels-based EU executive said last November that Microsoft and Amazon “occupy very strong positions” in the cloud market, and began a formal market investigation to determine whether the services should be hit by the DMA. The law — which includes a list of dos and don’ts for powerful companies enjoying so-called gatekeeper status — was intended to stop abusive conduct before its takes hold and allows digital giants to dominate markets.

But over recent months, the law has also drawn the ire of US President Donald Trump and complicated transatlantic trade talks. Apple Inc. and Meta have been the first recipients of financial penalties for allegedly breaching the law, with fines of €500 million ($573 million) and €200 million respectively.

The EU’s cloud market investigation in November came on the heels of several major outages in the industry that wrought havoc across global services, highlighting the risks of relying on a mere handful of players.

This included an episode in which Amazon’s reputation as a reliable provider of cloud services took a hit when an outage lasting some 15 hours disrupted the operations of hundreds of companies, ranging from Apple to McDonald’s Corp. to Epic Games Inc. Microsoft’s Azure similarly was hit by troubles in October that prevented people from checking in for Alaska Airlines flights and halted votes inside the Scottish Parliament. –BLOOMBERG

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DUBAI – The United Arab Emirates announced a social media ban for children under 15 on Thursday, joining a growing group of countries including Australia, Britain and Canada to take similar measures.

Social media platforms will have to monitor and disable accounts created by under-15s or risk being blocked, a cabinet resolution said, giving them a 12-month transition period.

“The resolution sets the minimum age for social media use at 15 years,” the official WAM news agency said, citing the cabinet resolution.

“Children below this age are prohibited from creating, using, or operating personal accounts on social media platforms.”

After Australia began a world-first social media bar for under-16s in December, a number of countries have followed suit including Britain, which announced its ban this week.

Indonesia, Malaysia, Turkey and several European countries have also cracked down on teen use of social media, although the UAE is the first in the Arab world.

The bans were inspired by concerns over mental health, cyber-bullying and a lack of physical activity, as well as online predators and addictive behaviour.

Critics say they are hard to enforce, deprive kids of social connection and can force undesirable behaviour into darker digital spaces where monitoring is difficult.

The UAE’s resolution is “closely aligned with leading global trends in digital child protection”, WAM said.

It bars children from “accessing the full features of (social media) platforms, including social interaction, publishing, commenting, sharing, joining public groups, open channels, or any large-scale interactive spaces”.

Children aged 15-16 are allowed to use social media, but with “enhanced protective measures” such as content restrictions and time limits on usage.

Bodies controlling media and telecommunications have “authority to take all necessary measures (against social media platforms) in the event of non-compliance”, WAM said.

These include “warning or partial or full blocking of platforms or the imposition of applicable administrative penalties”.

Parents and caregivers are also responsible for stopping children using social media or getting round age checks, the resolution said, adding: “Parental consent shall not constitute a valid exemption.”

The UAE already has strict laws against spreading “rumours” on the internet. During the Middle East war, hundreds of people were arrested for sharing images of attacks. –AFP

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SINGAPORE — Singapore has reclaimed the top position in the 2026 IMD World Competitiveness Ranking after slipping to second place last year.

According to the International Institute for Management Development’s (IMD) 2026 annual report released on Thursday, Singapore ranked first among 70 economies assessed followed by Hong Kong in second place and Switzerland in third.

“Singapore’s return to first place highlights how quickly agile economies can regain momentum.

“Its rise is driven by a broad recovery across several areas of competitiveness, with Business Efficiency leading the way,” IMD said in a statement on Thursday.

The report indicated that Hong Kong’s rise reflects sustained performance across four competitiveness factors measured: government efficiency, infrastructure, economic performance, and business efficiency.

Switzerland’s sharp drop in economic performance, driven by a severe deterioration in direct investment flows, highlights how even the world’s most competitive economies remain vulnerable to geopolitical uncertainties and investment-related shocks.

World Competitiveness Centre (WCC) director Arturo Bris emphasised that geopolitical conditions are worsening and global fragmentation is increasing.

“Nations with their own tried-and-tested, credible institutions gain an advantage in this context because, as international systems cease to serve so many national needs, businesses can carry on as usual,” he said.

The report also explored the extent to which economic pressures are affecting business confidence, drawing on a survey of 6,900 global senior executives that feeds into the ranking results alongside hard economic data. –BERNAMA

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MADRID – A judge investigating Spain’s former prime minister Jose Luis Rodriguez Zapatero for alleged influence peddling has expanded his politically explosive probe to the Socialist’s daughters, a court said on Thursday.

The investigation into a titan of the Spanish left comes as a string of other graft probes into Socialist Prime Minister Pedro Sanchez’s family and former top political allies have threatened to topple the government.

Zapatero, who governed Spain from 2004 to 2011, was placed under formal investigation last month suspected of influence peddling in connection with the 53-million-euro bailout of small airline Plus Ultra in 2021.

Investigating judge Jose Luis Calama has said evidence exists to suggest Zapatero headed a structure that used “opaque financial channels” to conceal the movement of money and obtain bribes for his manoeuvring to achieve the bailout.

Calama notified Alba and Laura Rodriguez Espinosa “to allow them to appear in the proceedings as persons under investigation and exercise their right of defence”, the Audiencia Nacional court said in a statement on Thursday.

The judge said both daughters ran a company “whose operations appear circumstantially to be linked to the scheme under investigation”, justifying their inclusion in the probe.

The company held “an instrumental role in the channelling, concealment or facilitation of relevant operations”, the statement added.

Police in May searched the offices of the company.

Zapatero’s secretary Gertrudis Alcazar was also placed under investigation.

The former premier defended his innocence during a three-hour hearing before Calama on Wednesday, becoming the first former or serving Spanish head of government to declare as a suspect in a corruption investigation.

He said he had always acted “with decency and honesty” and denied illicitly owning companies, money or financial products.

A police search of Zapatero’s office found jewellery and luxury watches valued at 1.3 million euros, leading Calama to probe additional alleged offences of tax fraud and smuggling.

Zapatero’s entourage attributes the hoard to a family inheritance.

Spanish media reported that the jewels were a gift from a former king of Saudi Arabia. –AFP

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ISTANBUL — The official Iranian news agency IRNA on Wednesday published the full text of a 14-point memorandum of understanding between Iran and the US.

According to Anadolu Ajansi, the document outlines a framework for ending hostilities, launching negotiations toward a final agreement and addressing issues ranging from sanctions and maritime security to Iran’s nuclear programme and reconstruction.

Key provisions of the draft:

1. Immediate and permanent cessation of military operations on all fronts, including Lebanon, with commitments not to resort to force and to guarantee Lebanon’s sovereignty.
2. Mutual respect for sovereignty and territorial integrity and non-interference in each other’s internal affairs.
3. Negotiations on a final agreement within 60 days, extendable by mutual consent.
4. Lifting of the US naval blockade and related restrictions, with complete termination within 30 days and eventual withdrawal of US forces from areas surrounding Iran after a final agreement.
5. Restoration of commercial shipping and navigation through the Strait of Hormuz, with Iran consulting Oman and other Gulf littoral states on its future administration.
6. Creation of a reconstruction and economic development programme worth at least US$300 billion for Iran with US and regional partner support.
7. Commitment by the US to end all sanctions on Iran, including UN, IAEA-related, and primary and secondary US sanctions, under a mutually agreed timetable.
8. Iran’s reaffirmation that it will neither produce nor acquire nuclear weapons, alongside negotiations on enriched material and civilian nuclear activities.
9. Maintenance of the status quo during negotiations, with Iran preserving its current nuclear programme and the US refraining from new sanctions or additional military deployments.
10. Immediate US waivers allowing exports of Iranian oil and petrochemical products, including related banking, insurance and transportation services.
11. Release and full usability of frozen Iranian funds and assets, with procedures to be agreed during negotiations.
12. Establishment of a joint implementation mechanism to monitor compliance with the memorandum and future final agreement.
13. Launch of negotiations on a final agreement once implementation begins on key provisions, including the ceasefire, maritime measures, oil waivers and access to frozen assets.
14. Endorsement of the final agreement through a binding UN Security Council resolution.

Earlier on Wednesday, US officials released a draft of the understanding with Iran to end their conflict. The signing ceremony is scheduled for Friday in Switzerland. — BERNAMA-ANADOLU 

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OIL fell as an interim US-Iran peace deal went into effect, putting the focus on how quickly transits through the Strait of Hormuz can be ramped up as Persian Gulf producers restart shut-in fields.

Brent sank below $79 a barrel after a modest gain on Wednesday, while West Texas Intermediate was near $76. President Donald Trump said he had signed the deal, which envisions a rapid reopening of the critical waterway.

US sanctions must be lifted immediately, according to Iranian Foreign Ministry spokesman Esmail Baghaei. “Iran must be able to sell its oil, shipping and insurance must not face any issues, and the revenues from oil sales must also be received,” he said on state television. 

Crude has shed almost all of the gains seen during the conflict, which erupted in February when the US and Israel attacked Iran to curb its nuclear program. Tehran responded by blocking the waterway, which used to carry about a fifth of global oil supply in peacetime. The US also subsequently blockaded the conduit in a bid to ramp up the pressure against Tehran.

“The easy part was reaching an agreement — the harder part is determining how much of the disruption from the past few months becomes permanent,” said Haris Khurshid, chief investment officer of Karobaar Capital LP.

Goldman Sachs Group Inc. said in a note this week it now assumes that Persian Gulf exports will normalize at pre-war levels by the end of next month, compared with an outlook for the end of August previously.

“Markets tend to assume a reopening means a reset,” said Khurshid. “While really some of the changes made during the disruption may stick around longer than people expect.”

Ahead of the deal’s signing — which ushers in a 60-day period of additional talks on unresolved issues —  the oil and shipping industry remained largely in wait-and-see mode, although a handful of vessels began rerouting toward the Middle East, while Iranian tankers laden with oil moved out.

Shipbrokers and owners reported some tentative inquiries about hiring vessels to collect oil from ports across the region, although it’s not clear whether any new deals have been struck. Iraq, the region’s second-largest producer before the war, has said that it was taking steps to increase exports.

While oil prices have eased, pressure on inventories remains acute. Stockpiles at Cushing, the largest US commercial storage hub, have sunk to about 20 million barrels. That’s a level traders consider an operational minimum. –BLOOMBERG

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