security

The surge in oil prices triggered by the war in Iran is increasingly becoming a major concern for global central banks, which are closely monitoring the potential economic and financial consequences of the shock.

More than a week of conflict in the Middle East has disrupted energy supply routes and pushed crude prices sharply higher, raising fresh fears about inflation. For policymakers already grappling with fragile economic conditions, the oil spike presents a complex policy dilemma.

Historically, oil shocks have posed a difficult challenge for central banks. Rising energy prices can drive inflation higher while simultaneously weakening consumer spending and business activity by raising costs. In such circumstances, policymakers face an uncomfortable choice: tighten policy to control inflation or ease financial conditions to support economic growth and employment.

The current situation could potentially produce both outcomes at once, creating a scenario where inflation rises even as economic demand weakens a combination that complicates monetary policy decisions.

Inflation Versus Economic Growth

Central banks traditionally respond to inflationary pressures by raising interest rates or maintaining tighter monetary policy. Some policymakers argue that responding quickly to inflation triggered by an oil shock can prevent inflation expectations from becoming entrenched and reduce longer-term economic damage.

Others, however, advocate “looking through” temporary energy-driven price spikes, arguing that aggressive tightening could unnecessarily damage economic growth. This approach gained prominence after the pandemic, when many central banks initially viewed inflation as temporary a judgment widely criticised in hindsight.

The decision facing policymakers now depends on several uncertainties, including how long the conflict lasts, how severely energy supplies are disrupted, and whether governments intervene with subsidies or price caps to protect consumers.

Given these unknowns, many central banks may prefer to adopt a cautious approach, waiting to see how markets and economic conditions evolve before making significant policy adjustments.

Financial Stability Risks Enter the Picture

Beyond inflation and growth concerns, central banks must also consider a third responsibility that has gained prominence since the global financial crisis: financial stability.

Senior policymakers worry that the oil shock could expose vulnerabilities that have been building in global financial markets for years. A large macroeconomic disturbance involving energy prices, inflation, interest rates and currency volatility could trigger a broader financial stress event.

Much of the concern centres on the growing role of “shadow banking” institutions, financial intermediaries operating outside traditional banking regulation. These entities have become increasingly important providers of credit to companies and governments.

One major area of focus is the rapid expansion of private credit funds, which now manage more than $3 trillion globally. These funds allow asset managers to lend directly to businesses, often outside the scrutiny of public markets or traditional banking standards.

Regulators worry that during a major shock, investors could rapidly withdraw funds from these vehicles, potentially creating liquidity problems for borrowers and spillover risks for banks that help finance or manage the funds.

Pressure in Bond and Repo Markets

Another major source of concern lies in government bond markets, where highly leveraged hedge funds have become increasingly active. Many of these funds use repurchase agreements, or “repo” markets, to borrow money and finance large trades involving government bonds.

These strategies often rely on exploiting small price differences between cash bonds and futures contracts, but they involve substantial leverage. While such activity can help smooth government financing, it can also create systemic vulnerabilities during periods of market stress.

The Financial Stability Board, which monitors risks to the global financial system for the G20, warned earlier this year that sudden deleveraging in repo markets could disrupt sovereign bond markets.

More than $16 trillion in repo transactions backed by government bonds were outstanding last year, with about 60% concentrated in the United States. A sudden withdrawal of leveraged investors could therefore have significant ripple effects across global financial markets.

New Fragilities: Stablecoins and Technology Stocks

Regulators are also monitoring emerging risks linked to digital finance. Stablecoins cryptocurrencies pegged to traditional currencies such as the U.S. dollar have grown rapidly and are increasingly investing reserves in government bonds.

With the stablecoin market now worth roughly $300 billion and expanding, any loss of confidence in these assets could trigger large-scale sales of the bonds that back them. Such an event could add stress to already volatile financial markets.

At the same time, some investors remain concerned about high valuations and heavy market concentration in the rapidly growing artificial intelligence sector, which could amplify market volatility during periods of economic uncertainty.

Analysis: Oil Shock Could Trigger Wider Financial Stress

The Iran war oil shock illustrates how geopolitical crises can interact with financial vulnerabilities to create broader economic risks.

Higher energy prices directly increase inflation and strain household finances. At the same time, they can force central banks to reconsider interest-rate policies, potentially leading to higher borrowing costs and greater volatility in financial markets.

Such conditions could expose weaknesses in highly leveraged sectors of the financial system, particularly in shadow banking, hedge funds and digital financial markets.

Although previous shocks including the economic turmoil following Russia’s invasion of Ukraine did not ultimately trigger a major financial crisis, policymakers remain cautious. The brief turmoil in the U.S. regional banking sector in 2023 demonstrated how quickly financial stress can emerge when economic conditions shift.

If oil prices remain elevated and central banks are forced to respond aggressively, the resulting tightening of financial conditions could amplify existing vulnerabilities across markets.

For now, the disturbances appear manageable. But the combination of geopolitical conflict, energy market disruption and financial fragility ensures that central banks will continue to watch the situation with increasing concern.

With information from Reuters.

The UN Security Council has passed a resolution put forward by Gulf Cooperation Council members calling on Iran to halt its attacks on Gulf countries. The measure was adopted with 13 votes in favour and two abstentions, while no member states voted against it.

Global currency and commodity markets stabilised slightly on Tuesday after a volatile start to the week triggered by the war involving Iran, United States and Israel. The U.S. dollar steadied against major currencies after earlier declines, following remarks from U.S. President Donald Trump that the conflict could end “very soon.”

Financial markets had been thrown into turmoil a day earlier amid fears that a prolonged war could trigger a major global energy shock. The conflict has disrupted oil and gas exports through the critical Strait of Hormuz, a vital shipping route for global energy supplies.

Although markets calmed somewhat after Trump’s comments, the broader environment remains highly uncertain as investors continue to assess the potential economic fallout from the conflict.

Dollar Holds Ground as Oil Prices Ease

In Asian trading, the U.S. dollar was largely steady against other major currencies after retreating from the highs reached during Monday’s market turbulence.

The currency traded at around 157.73 yen against the Japanese yen and about $1.1632 against the euro, reflecting a stabilisation following the sharp movements seen earlier.

Meanwhile, oil prices remained elevated but declined from the dramatic peaks reached at the start of the week. Brent crude traded at roughly $93 per barrel, still significantly higher than levels before the outbreak of the war but well below Monday’s surge toward $120.

The pullback in oil prices helped ease immediate concerns about a severe energy shock, although analysts caution that volatility could continue if the conflict escalates again.

Investors Remain Cautious

Despite the relative calm in currency markets, analysts say investors are far from convinced that the crisis is nearing resolution.

Rodrigo Catril, a currency strategist at National Australia Bank, warned that markets could continue to experience sudden shifts in sentiment as geopolitical developments unfold.

According to Catril, it remains unclear whether the Iranian leadership would be willing to pursue de-escalation, suggesting that the risk of renewed market volatility remains high.

The Islamic Revolutionary Guard Corps in Iran dismissed Trump’s suggestion that the conflict could end quickly, describing the remarks as “nonsense.”

Risk-Sensitive Currencies Under Pressure

Currencies closely linked to global economic sentiment weakened as investors remained cautious.

The Australian dollar slipped to around $0.7063, while the New Zealand dollar fell to roughly $0.5912. These currencies often decline during periods of geopolitical uncertainty or when investors shift toward safer assets.

The dollar, by contrast, has benefited from its traditional role as a safe-haven currency during times of crisis. The escalation of the conflict and disruption to energy markets prompted investors to move funds into U.S. assets, supporting the currency.

The British pound recovered from losses earlier in the week to trade around $1.3434.

Energy Prices and Global Growth Concerns

Investors remain concerned that sustained high energy prices could slow global economic growth. Rising oil costs increase expenses for businesses and households, effectively acting as a tax on economic activity.

At the same time, higher energy prices could complicate monetary policy by pushing inflation upward and making it harder for central banks to lower interest rates.

Analysts at Deutsche Bank noted that a broader market sell-off in risk assets would likely require several conditions to occur simultaneously: persistently high oil prices, a shift in central bank policy expectations and clear evidence of a slowing global economy.

Strategist Henry Allen said markets are now significantly closer to those thresholds than they were just a week ago, though the full conditions for a major downturn have not yet materialised.

Analysis: Markets Brace for Prolonged Volatility

The market reaction to the Iran war underscores how closely global financial conditions are tied to geopolitical developments in the Middle East.

While Trump’s comments about a possible quick end to the conflict helped stabilise markets temporarily, the underlying risks remain substantial. The disruption of energy supplies through the Strait of Hormuz continues to threaten global oil flows and could trigger renewed price spikes if the conflict intensifies.

For investors, the situation presents a delicate balance. On one hand, hopes for de-escalation could stabilise energy prices and reduce pressure on financial markets. On the other, continued fighting or further disruptions to oil shipments could quickly reignite volatility across currencies, commodities and equities.

Until there is clearer evidence of either de-escalation or escalation, markets are likely to remain highly sensitive to political developments, with the dollar continuing to benefit from its role as a global safe haven.

With information from Reuters.

The war involving Iran, United States and Israel is increasingly affecting energy supplies far beyond the Middle East, with Bangladesh now scrambling to secure fuel imports after disruptions to regional shipping routes.

Bangladeshi officials say the country has begun receiving diesel shipments from suppliers including China and India, allowing authorities to secure enough fuel to meet roughly one month of national demand. Arrangements are also being made to secure supplies for an additional month.

The South Asian nation of about 175 million people depends heavily on imported energy, with roughly 95% of its fuel requirements sourced from abroad. The disruption of Middle Eastern oil flows following the war has therefore exposed Bangladesh to severe supply risks.

Fuel Rationing and Economic Disruptions

To manage the supply shortage, authorities have introduced emergency measures including fuel rationing for vehicles, restrictions on diesel sales and the temporary closure of universities.

Energy shortages are also affecting Bangladesh’s critical export industries. The country is the world’s second-largest clothing exporter after China, and many garment factories rely on diesel-powered generators during power outages.

Industry leaders say the situation has worsened since the conflict began in late February. Power cuts have doubled to as much as five hours per day, forcing factories to rely more heavily on backup generators.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said many companies are struggling to obtain sufficient diesel to keep their operations running during electricity outages.

The shortages threaten to disrupt production in one of Bangladesh’s most important economic sectors, which accounts for the majority of the country’s export earnings.

Emergency Diesel Shipments Arrive

To stabilise supplies, the state-run Bangladesh Petroleum Corporation (BPC) has arranged diesel shipments from international traders.

Energy officials say around 60,000 metric tons of diesel are currently being delivered by three trading companies, with another 90,000 metric tons expected to arrive later this month.

A cargo of approximately 27,000 metric tons from PetroChina has already arrived at Chittagong Port, while another shipment of roughly 28,000 metric tons from Vitol is waiting at the port’s outer anchorage.

Additional supplies are also arriving through a cross-border pipeline from India’s Numaligarh Refinery, which is currently providing about 5,000 metric tons of diesel. Officials said negotiations are underway to secure a further 30,000 metric tons from Indian Oil Corporation.

Bangladesh typically consumes about 380,000 metric tons of diesel each month. However, officials estimate that rationing measures have reduced current demand to around 270,000 metric tons per month.

Oil Imports Threatened by Hormuz Disruptions

While refined diesel cargoes have continued to arrive, Bangladesh faces greater risks in securing crude oil shipments for its domestic refineries.

The country imports about 1.4 million metric tons of crude oil annually under long-term supply agreements with Saudi Aramco and Abu Dhabi National Oil Company.

However, shipments from these suppliers must travel through the strategically vital Strait of Hormuz, which has been heavily disrupted by the war. Officials say at least one cargo of around 100,000 tons from Saudi Aramco has already been delayed in the Gulf due to the ongoing crisis.

The Strait of Hormuz is one of the world’s most important energy transit routes, and any prolonged disruption could have far-reaching consequences for countries heavily dependent on imported fuel.

Gas Shortages Add to Energy Crisis

Bangladesh’s energy difficulties extend beyond diesel shortages. Severe natural gas shortages have already forced the closure of four of the country’s five state-run fertiliser factories.

Authorities have redirected the available gas supply toward electricity generation in an effort to stabilise power production during the crisis.

The combination of diesel shortages, disrupted oil imports and limited gas supplies is placing growing pressure on Bangladesh’s energy system at a time when global fuel markets are already experiencing heightened volatility.

Analysis: Energy Dependence Exposes Economic Vulnerability

Bangladesh’s struggle to secure diesel supplies illustrates how the war involving Iran is affecting energy-importing economies far beyond the immediate conflict zone.

Countries that rely heavily on imported fuel are particularly vulnerable to disruptions in global energy shipping routes, especially those linked to the Strait of Hormuz. Even temporary interruptions can lead to fuel shortages, higher prices and broader economic disruption.

For Bangladesh, the situation highlights the structural risks created by its dependence on imported energy. Industries such as garments, which rely on stable electricity supplies and backup diesel generators, are especially exposed to supply shocks.

Although emergency shipments from China and India have temporarily stabilised supplies, the situation remains fragile. If the conflict in the Middle East continues to disrupt oil shipments or drive up prices, Bangladesh could face prolonged energy shortages with significant implications for its economy and export industries.

With information from Reuters.

Israel believes it is progressing faster than expected in achieving its objectives in the war against Iran, according to Israel’s ambassador to France.

Ambassador Joshua Zarka said the military campaign, which Israel initially predicted would last several weeks, is moving ahead of schedule in meeting its strategic goals.

Speaking to BFM TV, Zarka said Israel’s objectives extend beyond dismantling Iran’s nuclear programme. He said the broader aim is to weaken Iran’s leadership so that it can no longer project power beyond its borders and so that the Iranian population can determine its own political future.

Israel’s Broader Strategic Objectives

According to Zarka, Israel’s campaign is designed not only to limit Iran’s military capabilities but also to significantly weaken the country’s ruling authorities.

The ambassador said that reducing the government’s ability to operate abroad would help prevent attacks against Israel and its allies, while also creating conditions in which Iranians could “take their fate into their own hands.”

His comments reflect a broader strategic message from Israel that the war is intended to reshape Iran’s regional role, rather than simply eliminate specific military programmes.

Zarka, who previously served as Israel’s lead diplomat dealing with Iran, suggested that Israel’s military progress is exceeding initial expectations.

Warning Over New Iranian Leadership

Zarka also commented on the recent appointment of Mojtaba Khamenei as Iran’s new supreme leader following the death of his father, Ali Khamenei.

He said that if Mojtaba Khamenei follows the same policies as his predecessor, he could become a potential target for Israel.

The remark underscores the increasingly confrontational rhetoric surrounding the conflict and signals that Israel sees Iran’s leadership itself as central to the confrontation.

Conflict Expands to Lebanon

At the same time, Israel has intensified military operations against Hezbollah, the Iran-backed militant group based in Lebanon, after cross-border attacks on Israeli territory.

The Lebanese government has said it would like to hold direct talks with Israel to stop the fighting. However, Zarka dismissed the possibility of negotiations at this stage.

Instead, he argued that the war would end only if Hezbollah is disarmed a step he said depends on decisions taken by the Lebanese government.

Analysis: Israel Signals No Immediate Path to Negotiations

Zarka’s comments suggest Israel believes the current military campaign is producing results and therefore sees little incentive to pursue negotiations in the near term.

By framing the war’s goals around weakening Iran’s leadership and limiting its regional influence, Israeli officials are signalling that the conflict is about more than just nuclear or missile capabilities.

The remarks also highlight Israel’s strategy of confronting Iran’s regional network of allied groups, including Hezbollah, which it views as a key extension of Tehran’s power.

Taken together, the statements indicate that Israel intends to continue military pressure until it believes Iran’s ability to project influence across the region has been significantly reduced.

With information from Reuters.

March 11 (UPI) — The United States resumed Global Entry, a program that allows trusted travelers to quickly get through U.S. customs, on Wednesday after a short break.

The service began again at 5 a.m. EDT Wednesday, the Department of Homeland Security said.

“We are working hard to alleviate the disruptions to travelers caused by the Democrats’ shutdown,” a DHS spokesperson said in a statement.

The program was suspended to preserve staff and resources during the partial government shutdown that began Jan. 31. When it was announced, the department said it would also suspend TSA PreCheck, which allows low-risk travelers to speed through Transportation Security Administration checkpoints, but quickly reversed course on that decision.

Geoff Freeman, president and CEO of the U.S. Travel Association, said the organization was pleased with the decision.

“Over the last two weeks, the travel industry has been clear about the role programs like Global Entry and TSA PreCheck play in both security and efficiency,” Freeman said in a statement. “Through outreach to members of Congress and administration officials, collaboration across the travel sector and strong public engagement, we highlighted a simple reality: Trusted Traveler Programs enhance security while keeping travel moving.”

Travelers at airports have seen long lines for TSA checkpoints, some lasting several hours with lines stretching out onto sidewalks.

The DHS, which includes TSA, is shut down because Congress couldn’t agree on a funding bill for the department. Democrats don’t want to fund it until guardrails are put on the agency, and Republicans haven’t agreed to Democrats’ demands.

Because of this, TSA workers got a partial paycheck on Feb. 28 and will miss their first full check Saturday. There have been more work absences while staff are not getting paid, which slows the TSA lines at major airports.

Vladimir Putin has presented multiple proposals to mediate the conflict in Iran, according to the Kremlin. Kremlin spokesman Dmitry Peskov said on Tuesday that the proposals are “still on the table,” emphasizing Russia’s readiness to help reduce tensions.

Peskov noted that any diplomatic solution requires coordination across multiple parties and agreements, signaling that Moscow intends to play a careful, measured role rather than rushing into mediation. This framing underscores Russia’s attempt to position itself as a credible intermediary while retaining influence over the conflict’s trajectory.

Recent Putin-Trump Contact

The remarks came after a phone call between Putin and Donald Trump on Monday, in which Putin reportedly offered options to end the Iran war quickly. Trump publicly said that Putin “wants to be helpful,” but added that resolving the Ukraine conflict would be an even more useful contribution.

The exchange highlights how Russia’s involvement in Iran is intertwined with its broader geopolitical interests, particularly in Europe and the Middle East. Moscow’s dual focus on positioning as a mediator and protecting its strategic priorities in Ukraine illustrates its careful diplomatic balancing act.

Russia-Iran Relations and Strategic Calculations

Russia maintains a strategic partnership with Iran, which provides it leverage in regional energy and security affairs. While Moscow has condemned U.S. and Israel military actions against Iran, it has also economically benefited from the resulting surge in oil prices.

Reports that Russia may have shared targeting intelligence with Tehran have drawn scrutiny, although Peskov declined to confirm or deny them. By avoiding direct comment, Russia preserves operational flexibility and manages international perceptions, allowing it to maintain influence with Iran while publicly projecting a mediating stance.

Analytical Perspective: Mediation Amid Strategic Interests

Russia’s position reflects a calculated effort to balance diplomacy and national interest. Keeping mediation proposals publicly “on the table” serves several purposes:

1. Diplomatic Leverage: By signaling willingness to mediate, Russia positions itself as a necessary interlocutor for any resolution, increasing its bargaining power with both the U.S. and Iran.
2. Strategic Buffering: Moscow preserves its ties with Tehran, protecting a partner in the Middle East while benefiting from higher oil prices amid global supply shocks.
3. Geopolitical Messaging: The Kremlin is communicating to the West that Russia can influence outcomes in the Middle East, reinforcing its image as a global power capable of shaping crises beyond its immediate borders.

This approach highlights a broader Russian strategy: maintain engagement in multiple theaters simultaneously Ukraine, Iran, and energy markets while avoiding overt entanglement that could provoke direct confrontation with the U.S. or NATO.

Conclusion: Patient Diplomacy as a Strategic Tool

Moscow’s emphasis on patience and coordination indicates that Russia is playing the long game, using mediation as a tool to expand influence rather than as a purely humanitarian effort. Analysts suggest that this approach allows Russia to extract maximum strategic advantage, balancing its regional partnerships, energy interests, and global standing, while leaving room to maneuver depending on how the Iran conflict evolves.

Russia’s dual role as both potential mediator and strategic partner to Tehran exemplifies the complex interplay of diplomacy, energy politics, and military calculation in the Middle East.

With information from Reuters.

Hezbollah reported on Monday that its fighters engaged Israeli troops in eastern Lebanon during an overnight airborne raid, marking the second such operation in the area in recent days. The conflict between Israel and the Iran-backed group has drawn Lebanon deeper into the regional war, which began after Hezbollah opened fire to avenge the killing of Iran’s former supreme leader.

The Israeli military has not immediately commented on the latest Hezbollah claim. In previous operations, the military carried out airstrikes across Hezbollah-controlled southern Beirut, including targeting financial institutions like Al-Qard Al-Hassan. Lebanese authorities report nearly 400 people have been killed in the country since March 2, including 83 children and 42 women, though the toll does not distinguish combatants from civilians. Israel confirmed two soldier deaths in southern Lebanon—the first Israeli military casualties since the outbreak of hostilities.

Expanding Operations

Hezbollah stated that around 15 Israeli helicopters flew over eastern Lebanon after midnight, deploying troops observed approaching Lebanese territory from Syria. The region, the Bekaa Valley, is a stronghold of Hezbollah’s political and security apparatus. This follows a similar Israeli raid near Nabi Chit on March 2–3, which Lebanese officials said killed 41 people. Israel described that previous operation as an attempt to recover the remains of Ron Arad, a navigator missing since 1986.

Civilian Displacement and Urban Strikes

The war has prompted mass displacement, with hundreds of thousands fleeing southern Lebanon and Beirut’s southern suburbs, known as Dahiyeh. Israeli strikes have also hit locations outside Hezbollah strongholds. On Sunday, a drone strike in Beirut’s Rouche seafront district reportedly killed five senior commanders of Iran’s Revolutionary Guards Quds Force, illustrating the widening geographic and operational scope of the conflict.

Strategic Posturing

Israel has reinforced its military presence in southern Lebanon, establishing forward defensive positions in anticipation of potential Hezbollah attacks into Israel. The military maintains troops at five positions in the region, a posture originating from the 2024 war with Hezbollah.

Analysis: Escalation Risks

The repeated incursions and airstrikes signal a deepening and increasingly unpredictable phase of the Israel-Hezbollah conflict. Hezbollah’s engagement of Israeli forces in eastern Lebanon demonstrates its capacity to operate beyond the southern front, potentially broadening the battlefield.

For Israel, the operations appear aimed at both tactical objectives such as neutralizing high-value targets—and broader deterrence, signaling its intent to strike Hezbollah assets and Iranian-linked operatives throughout Lebanon. For Lebanese civilians, however, the widening conflict exacerbates humanitarian pressures, including casualties, mass displacement, and infrastructure destruction.

The situation underscores the risk of further regional escalation, with Syria and Iran-linked actors already drawn into the conflict, raising the possibility of a protracted war with extensive human and geopolitical costs.

With information from Reuters.

The ongoing U.S.-Israeli conflict with Iran has sent oil prices soaring, rattling global financial markets and prompting governments to implement urgent measures to protect their economies and citizens from energy shortages and rising costs. As the war disrupts critical supply routes through the Strait of Hormuz, countries heavily reliant on oil imports are scrambling to stabilize domestic fuel supplies and mitigate inflationary pressures.

South Korea Caps Fuel Prices

In a historic move, South Korean President Lee Jae Myung announced that the government would cap domestic fuel prices for the first time in nearly 30 years. Authorities are also seeking alternative energy sources beyond shipments through the Strait of Hormuz. To support the measure, a 100 trillion won ($67 billion) market-stabilization program may be expanded if necessary, reflecting the severity of the supply shock.

Japan Prepares Strategic Oil Reserves

Japan has instructed a national oil reserve storage facility to prepare for a possible release of crude oil, according to opposition party lawmaker Akira Nagatsuma. While precise details and timing remain unclear, this measure underscores Japan’s reliance on strategic reserves to manage sudden spikes in global energy prices.

Vietnam Removes Fuel Import Tariffs

Vietnam is temporarily eliminating import tariffs on fuels to ensure continued domestic supply amidst global disruptions. The government expects this measure to remain in effect until the end of April, aiming to reduce cost pressures on both businesses and consumers.

Indonesia Boosts Fuel Subsidies and Biodiesel Plans

Indonesia is increasing budget allocations for fuel subsidies, currently totaling 381.3 trillion rupiah ($22.5 billion), to offset rising energy costs and maintain affordable electricity and fuel prices. The government may also revive plans to expand the B50 biodiesel program, blending 50% palm oil-based biodiesel with conventional diesel, as a longer-term strategy to reduce dependency on imported oil.

China Halts Fuel Exports

China has directed refiners to suspend new fuel export contracts and attempt to cancel previously committed shipments. This policy excludes jet fuel for international flights, bonded bunkering, and supplies to Hong Kong or Macau. The move is designed to secure domestic fuel availability amid soaring global prices.

Bangladesh Closes Universities and Rations Fuel

Bangladesh, which depends on imports for 95% of its energy, has implemented emergency measures including university closures and rationing fuel sales to conserve electricity and fuel. Daily fuel sale limits were imposed after panic buying and stockpiling, highlighting the country’s vulnerability to regional energy disruptions.

Analysis: A Coordinated Global Response

These measures illustrate the unprecedented economic ripple effects of the Middle East conflict. Countries with high import dependency are balancing immediate crisis management such as subsidies, price caps, and rationing with longer-term energy strategies, including strategic reserve releases and alternative fuel initiatives.

The rapid policy responses also underscore the fragility of global energy markets in the face of geopolitical conflicts. Central banks and governments must navigate a complex trade-off: containing inflation while ensuring sufficient energy supply to prevent industrial slowdowns and social unrest.

As the conflict persists, global energy markets remain highly volatile, and governments may need to continue adjusting policy tools to stabilize domestic economies, with potential implications for trade, inflation, and energy security worldwide.

With information from Reuters.

Iran on Monday named Mojtaba Khamenei as its new supreme leader following the killing of his father, Ali Khamenei, in strikes on the first day of the current war. The move signals that Iran’s ruling establishment intends to maintain its hardline course despite the dramatic loss of the country’s most powerful figure.

Mojtaba Khamenei, a 56-year-old Shi’ite cleric with strong connections to Iran’s security apparatus, was quickly endorsed by political leaders, military bodies and religious institutions. Public ceremonies and declarations of loyalty were organised across the country, reflecting a rapid effort by the political system to demonstrate continuity and stability at a moment of intense external pressure.

The appointment is widely seen as closing off any near-term possibility of a negotiated end to the conflict that has engulfed the region. With a figure closely aligned with Iran’s powerful security institutions now leading the state, analysts expect Tehran to maintain a confrontational stance rather than seek quick concessions.

Consolidation of power within the system

Iran’s political and military leadership rallied quickly behind the new leader. Statements from the defence establishment pledged unwavering loyalty to Mojtaba Khamenei, describing him as commander-in-chief and promising to follow him “until the last drop of our blood.”

The swift consolidation of authority highlights the enduring strength of the Islamic Republic’s institutional framework. The supreme leader sits at the top of Iran’s political hierarchy, exercising ultimate control over the military, judiciary and key elements of the state.

Supporters of the government described the succession as a demonstration that the system could withstand even the killing of its long-serving leader. Some Iranians interviewed by media outlets expressed pride and relief that the leadership transition had occurred quickly during wartime, viewing it as a sign of national resilience.

Others, however, reacted with disappointment or anxiety. Many critics of the government had hoped that the death of the elder Khamenei might open the door to political change. Instead, the elevation of his son long considered close to the security establishment suggests continuity rather than reform.

Divided reactions inside Iran

Public reactions within Iran have reflected the country’s deep political divisions. Supporters of the authorities praised Mojtaba Khamenei’s appointment as a defiant response to foreign pressure and an affirmation that the Islamic Republic remains intact.

Critics, however, say the change offers little hope for political liberalisation. Many opposition figures and activists have remained quiet, in part because of fears of repression during wartime. The government recently suppressed widespread protests, and security forces maintain a strong presence across major cities.

Observers note that Iran’s powerful security institutions including the Islamic Revolutionary Guard Corps retain extensive resources and influence. The Guard and associated networks also control major sectors of the economy, reinforcing the system’s ability to maintain power even during crises.

International pressure and escalating conflict

The leadership change comes amid escalating hostilities involving Israel and the United States. U.S. President Donald Trump has demanded Iran’s unconditional surrender and has suggested Washington should have influence over the selection of Iran’s supreme leader.

Trump has previously warned that any successor to Ali Khamenei could face the same fate if Iran continued what he described as hostile policies. Israeli officials have also indicated that senior Iranian leaders could remain targets unless Tehran abandons its military programmes and regional alliances.

Israel’s stated war aims include dismantling Iran’s missile and nuclear capabilities, and some officials have also spoken of ending the country’s clerical system of rule. Washington’s position initially focused on military capabilities but has hardened during the conflict.

Meanwhile, Israeli operations have expanded across the region, including strikes in Beirut and other areas linked to Iranian-backed groups such as Hezbollah. Fighting and airstrikes have resulted in significant casualties in Iran, Lebanon and Israel.

Energy shock and global economic impact

The war has triggered one of the most severe energy disruptions in decades. Shipping through the Strait of Hormuz, a narrow waterway near Iran’s coast through which roughly a fifth of global oil and liquefied natural gas supplies pass, has been effectively halted.

With tankers unable to move for more than a week, producers have faced storage shortages and in some cases have been forced to halt pumping. The supply shock sent Brent crude prices surging sharply, briefly approaching $120 per barrel before settling above $100.

The surge has rattled financial markets worldwide, pushing stock indexes in Asia and Europe sharply lower and raising fears of inflationary pressure in major economies. Rising fuel costs also carry political implications in the United States, where gasoline prices are closely watched by voters ahead of upcoming elections.

Regional fighting intensifies

Military operations have continued across multiple fronts. Israeli forces have struck targets in central Iran and carried out attacks on infrastructure, including an oil refinery that sent thick black smoke rising over the capital, Tehran.

At the same time, Iranian-aligned forces have launched attacks elsewhere in the region. A refinery in Bahrain was damaged in a strike that forced the national oil company to declare force majeure, further highlighting the widening scope of the conflict.

Casualties have mounted rapidly. Iranian officials say more than 1,300 civilians have been killed in U.S.-Israeli strikes, while deaths have also been reported in Lebanon and Israel. Israeli authorities confirmed fatalities from Iranian missile attacks, and several soldiers have been killed in fighting along the Lebanese border.

Iran’s system of rule

The role of supreme leader was created following the Iranian Revolution of 1979, which established the Islamic Republic under clerical leadership. The position combines religious authority with ultimate political power.

Ali Khamenei held the office for more than three decades, shaping Iran’s foreign policy and domestic governance during periods of sanctions, regional conflict and diplomatic negotiations with world powers. His death in wartime marked one of the most dramatic moments in the country’s modern political history.

Mojtaba Khamenei has long been viewed as an influential figure behind the scenes, particularly within security institutions. Though less publicly prominent than other clerics, he has been widely considered close to the Revolutionary Guard and to key power brokers within the political establishment.

Analysis: Hardline continuity and a longer war

The rapid elevation of Mojtaba Khamenei suggests that Iran’s ruling system is prioritising continuity and cohesion over reform or compromise. By choosing a figure closely aligned with the security establishment, the leadership appears determined to project strength during wartime.

This choice reduces the likelihood of immediate diplomatic concessions that might have opened a path to de-escalation. A leader closely tied to Iran’s military institutions is more likely to emphasise resistance and national defence rather than negotiation under pressure.

At the same time, the succession demonstrates the resilience of Iran’s political structure. Despite the loss of its long-time leader and ongoing military attacks, the state apparatus has moved quickly to stabilise authority and present a unified front.

For the wider region and the global economy, the implications are significant. If Iran continues to pursue a confrontational strategy under its new leader, the conflict could become prolonged, keeping energy markets volatile and increasing the risk of further escalation across the Middle East.

With information from Reuters.

A SOUTHWEST Airlines flight has been diverted and forced to do an emergency landing after a mid-air security threat.

Flight 2094 from Nashville to Fort Lauderdale was forced to cut the journey short and land at Hartsfield-Jackson Atlanta International Airport at 9:06pm on Friday night.

While thousands of feet in the air, a security threat was reported which saw tactical cops storm the aircraft upon landing and detain a passenger.

A video allegedly taken on board the flight showed the moment a man was dragged off the flight by the Atlanta Police Department.

The clip shared on X showed terrified passengers with their hands raised above their heads as cops cuffed a passenger and took him off the aircraft.

The text on the clip claimed that there had been a bomb threat but this has not been commented on by the airline or police.

In a statement, Southwest said the diversion came due to a “possible security matter.”

“We appreciate the professionalism of our flight crew and sincerely apologize to our customers for the significant delay,” the spokesperson said.

“Nothing is more important to Southwest than the safety of its customers and employees.”

The Atlanta Police Department confirmed it worked with federal partners to attend to “last night’s incident” at the airport.

The nature of the security threat and if the passenger removed will face any charges remains unclear.

It is not known if the passenger is still in police detention.

Officials have not commented if any dangerous items were found onboard.

After the police activity, all passengers boarded another plane and continued their journey to Fort Lauderdale where they arrived safely just before 3:30am.

The airline has apologized to all affected passengers.

It comes as the Department of Homeland Security (DHS) remains on shutdown over funding disagreements which former Security Secretary Kristi Noem said is “endangering national security.”

The DHS has been shut down since February 14 which Noem said has negatively impacted and put huge pressure on TSA and border patrol.

In addition to this, Republicans have warned that the country is under an increased domestic terror threat due to the recent US-Israeli strikes on Iran.

“Now is the time to be vigilant at home and to ensure that all of our doors are locked, so to speak,” Speaker Mike Johnson, warned on Wednesday as he discussed the continued shutdown.

“Senate needs to fund the TSA. They’ve had them the Coast Guard, FEMA and Cybersecurity CISA on shut down for 3 weeks. We will surely see more of this,” one viewer of the footage from the diverted aircraft said.

“Unfortunately there’s going to be a lot more of this coming,” another said.