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Oil prices crash as Iran blinks

Published

4 months ago

June 27, 2025

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NEW YORK, June 24, (AP): If oil prices are any measure, Iran just flinched. The price of oil tumbled Monday afternoon in an historical move as traders bet that Iran’s decision to bomb a U.S. base in Qatar signaled it was not planning to do the one thing that could really hurt America: Shut down the flow of oil by attacking crude shipments. “When the response comes and it is muted, oil drops,” said Tom Kloza, chief market strategist at consultancy Turner Mason & Co, calling the limited Iran response far short of what many traders feared.

“This rivals some of the historic selloffs.” There’s still plenty Iran could do to push prices back up, and the markets could be getting it all wrong, But oil analysts say there are plenty of reasons fear has receded. Adding to the odds that prices will settle, President Donald Trump announced that Israel and Iran had agreed to a complete ceasefire, though the situation remained unclear. The price of West Texas Intermediate, the U.S. benchmark, fell 7.2% to $68.51 per barrel in regular trading on Monday after Iran announced a missile attack on Al Udeid Air Base in Qatar, which the U.S. military uses. Traders were relieved because Iran said it had matched the number of bombs dropped by the U.S. on Iranian nuclear sites this weekend, a possible sign of a desire to de-escalate the conflict. The price of oil fell further after Trump announced a “complete and total ceasefire” to be phased in over 24 hours. Oil fell almost 4% to $65.84 a barrel early Tuesday, and is now below where it was before fighting between Iran and Israel began over a week ago, when a barrel of U.S. crude was just above $68. Markets were initially nervous Sunday as oil futures opened for trading.

The price of Brent crude, the international standard, had jumped 4% as traders anxiously watched the Strait of Hormuz, a waterway on Iran’s southern border that legislators in Tehran were demanding be closed in retaliation. That would have walloped the global economy because much of world’s crude and liquified gas passes through it. Brent crude was trading at $68.06 per barrel, down 3.5%, early Tuesday. That’s good news for Trump, who wants the Federal Reserve to stop worrying about inflation and start cutting interest rates. It’s also good for motorists this summer if the trend holds. Drivers were already paying higher prices at the pump before the U.S. attack. The average price nationwide is $3.18 per gallon, according to GasBuddy surveys, about 10 cents more than two weeks ago. Some traders doubted Iran would try to close the Strait of Hormuz even before its limited attack Monday. Much of country’s own crude passes through the waterway – 1.5 million barrels a day – and oil is a big revenue generator for the country that they would be loath to disrupt. “It’s a silly notion that the Iranians would look to do that,” said Kloza. “I’ve been covering oil for 50 years and we’ve never seen the Strait of Hormuz compromised.” Asked about the prospect of a shutdown on NBC’s “Meet the Press” Sunday, Vice President J.D. Vance put it more simply: “I think that would be suicidal.” At current oil prices, Tehran receives roughly $40 billion in revenue annually from oil transiting the same waters. That is a tenth of what the entire of country produces in goods and services.

Andy Lipow, an Houston based oil analyst, says history suggests Iran won’t disrupt its own flow of oil, but that countries, like people, don’t always act in their economic interests. “The question for the oil markets is, ‘Is his time different?’,” he said. “You might have an emotional decision.” He notes also that Iran has other ways to push oil higher without completely closing off the waterway. Iran could jam navigational devices, slowing transit, or drop mines in the water, forcing the U.S. Navy to do more escorts. Or it could bomb a tanker, he said, sending the premiums that shippers need to pay insurers sky high. If traders are wrong and oil shoots back up, the impact could be widely felt. A surge in oil prices would come at a bad time. Trump insists that the inflation scare is largely over, but many economists think higher prices are still coming because the full impact of his tariffs are only now beginning to show up on everyday goods. Trump is clearly aware things could change fast. “To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” he wrote on Truth Social Monday, adding. “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING!”

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Business

Kuwait real estate calms after early October surge

Published

8 hours ago

October 21, 2025

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KUWAIT CITY, Oct 21: The local real estate market recorded mixed performance in various sectors in the second week of October. The coastal strip witnessed an unprecedented qualitative leap with a growth rate of 163.6 percent, with two transactions valued at more than KD8.7 million.

This entails the return of activity in this sector, which is usually associated with ‘heavy’ deals with a distinctive investment character. The newspaper obtained a copy of the weekly statistical report issued by the Real Estate Registration and Documentation Department at the Ministry of Justice, indicating the number of real estate transactions from Oct 12 to 16 totaled 143 worth KD123.3 million, compared to 175 transactions worth KD127 million in the first week of the month.

This is a decline of 18.3 percent in number and around three percent in value, indicating that the market entered a period of relative calm after a remarkable period of activity in early October. For the residential sector, its performance declined by 16.3 percent in number of transactions and 5.9 percent in value, recording 97 transactions worth KD43 million, compared to 116 transactions worth KD45.7 million in the previous week. Observers attribute this decline to the anticipated implementation of the Vacant Land Monopoly Law early next year, which led to hesitation in buying and selling decisions.

In contrast, the investment sector continued its positive performance, achieving a qualitative increase of 3.3 percent in value, through 40 transactions worth KD50.2 million, compared to 51 transactions worth KD48.6 million in the first week. This is a confirmation of the sustained attractiveness of the sector to investors seeking stable rental returns amid low interest rates.

The commercial sector maintained its numerical stability at four transactions, but recorded 24.3 percent decrease in value, reaching KD21.4 million compared to KD28.3 million in the previous week, indicating smaller transactions compared to the previous period.

Ahmadi Governorate topped the trading list with 40 transactions worth KD29.7 million, followed by Hawally Governorate with 37 transactions worth KD27.3 million, the Capital Governorate with 28 transactions worth KD38.7 million, Mubarak Al-Kabeer Governorate with 15 transactions worth KD8.8 million, Farwaniya Governorate with 12 transactions worth KD8.7 million, and Jahra Governorate with 11 transactions worth KD3.4 million.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff

Business

CAPT awards KD7.77m grid tenders

Published

9 hours ago

October 21, 2025

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KUWAIT CITY, Oct 21: The Board of Directors of the Central Agency for Public Tenders (CAPT) recently decided to award three tenders for the maintenance of parts of the electrical grid, with a total cost of KD7.766 million. These tenders will be referred to the State Audit Bureau for audit and to obtain its opinion prior to the final contract approval. One of the tenders is for the supply and installation of medium-voltage (11 kV) and low-voltage lines and related works along Salmi Road at a total cost of KD2.354 million.

The other tender is for the maintenance and repair of insulated cable feeders in the southern part of the country at a cost of KD2.706 million, while the last tender covers the maintenance and repair of insulated cable feeders in the central area at a total cost of KD2.706 million. CAPT excluded the lowest bidders for non-compliance with the technical terms and specifications for the two cable feeder maintenance tenders.

Meanwhile, the statistical report issued by the Ministry of Electricity, Water and Renewable Energy in September revealed that the ratio of female to male appointments has shown a slower pace of growth, increasing by only 0.2 percent in the first nine months of this year. It disclosed that the total number of female employees appointed in January reached 9,770 (27.6 percent), which increased to 10,190 (27.8 percent).

By Mohammed Ghanem Al-Seyassah/Arab Times Staff

Business

Kuwait hallmarks 55 tons of precious metals in 6 months, generates $5.5M in fees

Published

18 hours ago

October 21, 2025

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Kuwait hallmarks 55 tons of precious metals in 6 months, generates $5.5M in fees

The Ministry of Commerce and Industry inspects 55 tons of precious metals in H1 2025, collecting $5.5 million in fees.

KUWAIT CITY, Oct 21: The Ministry of Commerce and Industry announced that its Precious Metals Department inspected and hallmarked approximately 55 million grams of gold, silver, and other precious metals and stones during the first half of 2025, generating total fees of KD 1.77 million (around USD 5.5 million).

In official statistics released to Kuwait News Agency (KUNA) on Tuesday, the ministry revealed that gold and silver dominated the inspected quantities. Specifically, 18.063 million grams of gold were examined, with fees totaling KD 909,000 (approximately USD 3 million). Silver inspections amounted to 31.446 million grams, yielding KD 314,000 (around USD 1 million) in fees.

The ministry further stated that 2.221 million grams of gold inlaid with precious stones were also examined, generating fees of KD 158,000 (around USD 516,000).

Detailed statistics showed that unplated gold made up the majority of gold examined, followed by gold inlaid with precious stones at 11 percent and gold inlaid with diamonds at 4 percent.

In relation to other services such as parcels, certificates, and trade releases, the ministry indicated that additional fees collected amounted to KD 184,000 (approximately USD 600,000). Among these, trade release services topped the list, with 7,599 transactions generating KD 75,000 (about USD 245,000).

The data also highlighted fees collected from the examination of plated accessories and prayer beads. A total of 13,945 plated accessories were examined for KD 1,394 (around USD 4,500), while 9,540 prayer beads generated KD 4,700 (about USD 14,000) in fees.