Business
Oil prices drop to $65 amid trade uncertainty
Kamel Al-Harami
BRENT oil prices dropped to $65 a barrel by the end of Friday, with uncertainty about how much further the decline will continue. This drop is a direct result of the U.S. administration imposing tariffs on all goods imported into the country, ranging from ten percent to as high as 46 percent and 49 percent on goods from Vietnam and Cambodia. This led to huge decline in stock values, sparking panic in global markets as investors brace for the potential fallout on Monday.
In Kuwait and the rest of the Gulf Cooperation Council (GCC) countries, the tariff rate stands at a relatively low ten percent. While trade with the U.S. is limited primarily to oil and gas, which are exempt from the tariffs, the impact of these new import taxes is still being felt. A tariff on oil and gas imports would have disastrous impact for U.S. gasoline consumers, which is why it did not seem to be the right moment for such a measure. OPEC+ finds itself in a difficult position, and is uncertain how to respond. The group recently decided to increase oil production starting next month and is considering pumping even more crude into the market from June onward. The decision aims to protect market share and boost domestic economies by increasing oil revenues. However, with oil prices at $65 a barrel, there seems to be little appetite for further price declines. Even though OPEC+ has made its decision, it might reconsider as the situation evolves. The timing of this move may not be ideal, and we must wait and see how things unfold.
There is limited demand for more oil right now, and inflation is expected to rise, creating an unclear economic outlook. Every country will need to prioritize domestic issues, face inflationary pressures, and tighten their belts. In these uncertain times, everyone needs to tighten their belts and save until the economic picture becomes clearer. Saving and reducing expenses is the wise choice right now. With inflation impacting the global economy, including the USA, which has been at the center of many economic challenges, the future remains unpredictable. Oil prices are expected to decrease, with $60 per barrel potentially being a target if OPEC+ increases production. The next six months will be critical, as countries negotiate and explore new trade alliances. China is expected to emerge as the primary beneficiary of these shifts. Global trade is in turmoil, but this presents an opportunity to reshape the trade map. New global alliances and partnerships will form, with China taking center stage as a major player in world trade.
The Kuwait government approves tougher measures to tackle financial crimes.
KUWAIT CITY, June 30: Kuwait is intensifying efforts to combat money laundering and terrorist financing by enhancing its legislative framework, announced Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam on Monday.
The minister spoke in a statement issued by the Ministry of Finance following the publication of Decree Law No. (76) of 2025 in the official gazette, Kuwait Today. This decree introduces important amendments to Law No. (106) of 2013, reflecting Kuwait’s integrated government efforts to strengthen measures against financial crimes.
During the Cabinet meeting on June 17, the draft of the amended decree law was approved, underlining Kuwait’s commitment to raising the effectiveness of the national response to money laundering and terrorism financing. The amendments align with the requirements of the Financial Action Task Force (FATF) and relevant international standards.
The new decree law includes two significant amendments:
- Article One replaces Article (25) of Law No. (106) of 2013, empowering the Council of Ministers, upon the recommendation of the Minister of Foreign Affairs, to issue necessary decisions to implement United Nations Security Council resolutions related to terrorism, terrorism financing, and the proliferation of weapons of mass destruction under Chapter VII of the UN Charter. These decisions will take effect immediately upon issuance, consistent with Security Council Resolution No. 1373 of 2001. The executive regulations will define the rules for publishing these decisions, appealing them, authorizing the release of frozen funds for essential living expenses, and managing such assets.n
- Article Two adds a new Article (33 bis) to Law No. (106) of 2013, stating that any violation of decisions issued under Article (25) will result in fines ranging from 10,000 to 500,000 Kuwaiti dinars per violation. This penalty complements any additional sanctions imposed by regulatory authorities on financial institutions or designated non-financial businesses.n
The Ministry emphasized that these amendments support the National Committee for Combating Money Laundering and Terrorism Financing by broadening its powers to apply targeted financial sanctions in compliance with FATF standards. This includes the mandatory freezing of assets belonging to individuals and entities listed locally as terrorists, effective immediately upon decision issuance.
Furthermore, the amendments enable the Committee to impose fines on violators and require publishing the national list of designated terrorists on the Committee’s official website, enhancing transparency and meeting international obligations.
Minister Al-Fassam concluded that the updated legislative measures reaffirm Kuwait’s strong commitment to fighting financial crimes, safeguarding national security and stability, and fulfilling its global responsibilities.
Updated regulations aim to boost fair use and revenue from state properties.
KUWAIT CITY, June 30: The Ministry of Finance announced on Sunday the issuance of a new ministerial decision amending the regulations governing the use of state-owned real estate and service fees, in a move aimed at achieving a fair balance between public interest and the needs of individuals and institutions.
In a press statement, the Ministry said the decision comes as part of its broader efforts to regulate the use of government-owned properties and protect national resources. Ministerial Resolution No. 54 of 2025 introduces amendments to the regulations first outlined in Resolution No. 40 of 2016.
Minister of Finance and Minister of State for Economic Affairs and Investment, Eng. Noura Al-Fassam, stated that the amendments are intended to ensure fairness, clarify procedures, and improve transparency in the utilization of state assets.
“These changes aim to establish a fair balance in how state-owned properties are used by citizens and entities, while safeguarding public interests,” Al-Fassam said.
She added that the updated regulations were the result of a comprehensive pricing study comparing Gulf and international markets. The amended prices remain below average rates in Gulf Cooperation Council (GCC) countries, and were developed with Kuwait’s economic and social conditions in mind. The goal, Al-Fassam noted, is to promote equal opportunities and secure sustainable revenue streams for the state.
The amendments cover a wide range of activities involving the use of state-owned property, including chalets, rest houses, commercial complexes, cooperative societies, banks, and warehouses. They also apply to educational institutions, sports clubs, and hospitals.
In support of national food security and the promotion of local production, the Ministry also announced the stabilization of agricultural coupon prices under the new regulations.
The revised framework reflects Kuwait’s continued efforts to modernize its public asset management policies while maintaining a strong emphasis on economic fairness, efficiency, and sustainability.
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