Saudi Arabia Builds Largest Grains Storage Capacity in the Middle Easthttps://english.aawsat.com/business/4326696-saudi-arabia-builds-largest-grains-storage-capacity-middle-east
Saudi Arabia Builds Largest Grains Storage Capacity in the Middle East
A view of the Milling Company 3 in Saudi Arabia. (Asharq Al-Awsat)
Saudi Arabia has built the largest advanced grain storage capacity in the Middle East, increasing the total by 40 percent from 2.5 million tons in 2016 to 3.5 million tons.
The Ministry of Environment, Water, and Agriculture (MEWA) revealed that the system has record achievements in the agricultural sector as part of its strategies to achieve Saudi Vision 2023.
According to the report, the Ministry's efforts had a clear impact on recording the highest domestic product in the sector's history, indicating that achieving food security in the Kingdom is one of the priorities of the system that finds unlimited support from the government.
The report emphasized that the Saudi food security strategy provided a model for maintaining the stability of food supply chains during crises and in areas of cooperation with the private sector.
The strategy, supervised by the General Food Security Authority (GFSA), empowered the private sector by fully privatizing the mills after restructuring, distributing them to four independent companies, and transferring their ownership, worth about $1.5 billion.
It also included a national program to reduce food waste, setting the baseline for the food loss index at 33.1 percent.
The strategy developed organic agriculture by raising production at a rate of 79.5 percent, from 56.26 thousand tons in 2016 to 101,000 tons.
The report indicated that the Ministry's efforts also increased self-sufficiency in several agricultural and animal products, which enhances food security and safety.
The Ministry boasts several international achievements, including the Guinness World Record for the longest agricultural trip in the world after the agricultural guidance convoy, dispatched by the Ministry, crossed 8,320 kilometers.
The report explained that the government support programs were a significant reason for the Kingdom's topping global positions in many fields, including the first rank in dates exports.
Saudi Arabia also won the World Summit Award and topped the Information Society for 2022 in the category of digital agriculture and electronic services provided through the Nama portal.
According to the report, the system is moving towards achieving food security and sustainable agricultural development within strategies, plans, programs, and initiatives to achieve citizens' well-being and prosperity.
It also supports farmers, livestock breeders, and poultry and fish producers to provide safe food and sustainable infrastructure.
Oil Slips after Trump Says Talks with Iran are Ongoing
An oil rig operating in an oil field in the Permian Basin, Texas, USA (Reuters)
Oil prices trended lower on Tuesday following the previous session's sharp gains as the market remained cautious about progress in US-Iran peace talks.
US President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported earlier that Tehran had suspended indirect negotiations with Washington.
Brent crude futures lost 75 cents, or 0.79%, to $94.23 a barrel at 0434 GMT, while US West Texas Intermediate fell 85 cents, or 0.92%, to $91.31 a barrel.
Both benchmarks rose more than 5% in the previous session, having posted a monthly loss of more than 16% in May on hopes of a peace deal.
"While markets had hoped to move past the uncertainty amid prospects of a potential deal, nothing appears to have changed for oil as of this morning," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
In an interview with CNBC on Monday, Trump said he did not mind if the talks were over. But shortly after, he issued a social media post saying talks with Iran were continuing and told ABC News that he expected a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week”.
"The market is currently focused on whether there's any concrete progress or setbacks in US-Iran negotiations, the tone and substance of statements from both sides (particularly Iran's threats regarding the Strait of Hormuz), and actual physical tanker movements through the waterway," said Tim Waterer, chief market analyst at KCM Trade.
The status of the US-Iran negotiations at any given point will ultimately determine whether the current risk premium stays embedded in oil prices or starts to unwind, Waterer added.
Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has inflamed the broader war with Iran.
Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf since the war began, choking off about a fifth of global oil and liquefied natural gas flows and driving prices up by 50% or more.
US crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis pushed up demand for the country's oil from Asian and European refiners, ship tracking estimates showed on Monday.
According to a preliminary Reuters poll released on Monday, US crude stockpiles are expected to have fallen by about 3.6 million barrels in the week ended May 29, extending the prior week's draw, while distillates and gasoline inventories also are likely to have declined.
Shipping executives meeting in Athens on Monday said that any peace deal worked out between the US and Iran would need to offer clear rules allowing vessels to resume normal business via the Strait of Hormuz.
Report: Multi-Level Partnerships a Safeguard for Gulf Securityhttps://english.aawsat.com/business/5279366-report-multi-level-partnerships-safeguard-gulf-security
Report: Multi-Level Partnerships a Safeguard for Gulf Security
Gulf leaders in a group photo during the Gulf Cooperation Council summit in Kuwait in 2024 (SPA).
A recent analytical report says Gulf states are well positioned to play a larger role in shaping the regional security architecture in the aftermath of the war against Iran by adopting a multi-level security approach that combines greater self-reliance with broader international partnerships.
The report, prepared by Ambassador Alessandro Minuto-Rizzo, President of the NATO Defense College Foundation and former Deputy Secretary General of the North Atlantic Treaty Organization (NATO), was published by the Gulf Research Center in Jeddah. It says partnership with NATO represents an important avenue for developing Gulf defense capabilities, offering opportunities to benefit from the alliance's accumulated military and operational expertise while enhancing strategic dialogue and exchanges in the fields of security and defense.
Multi-Level Approach
Minuto-Rizzo argues that the next phase will require Gulf states to adopt a multi-level security strategy based on diversifying partnerships and strengthening self-reliance, while maintaining strategic ties with the United States and expanding engagement with Europe and NATO.
He says Gulf countries handled the war against Iran with considerable political prudence, seeking to avoid being drawn into military confrontation despite coming under attack and sustaining direct damage. He notes that Gulf states have in recent years continued a policy of diplomatic opening toward Tehran.
The President of the NATO Defense College Foundation points to the restoration of Saudi-Iranian relations through Chinese mediation and notes that Gulf states sought to de-escalate tensions following the outbreak of the war while strengthening contacts with potential security partners such as Pakistan, Egypt and Türkiye.
In his report, published in Views on the Gulf, a journal of the Gulf Research Center, he argues that the Gulf states' decision not to respond directly with military force to Iranian attacks was not a sign of weakness. Rather, it reflected a deep political understanding of the risks of widening the conflict and turning it into a full-scale regional war with consequences that could prove difficult to contain.
A Saudi Royal Air Defense Forces company during a graduation ceremony at Fort Bliss, United States (Ministry of Defense).
The US Role in the Region
According to Minuto-Rizzo, the United States remains the cornerstone of Gulf security despite growing debate over the past two decades about the nature of Washington's role in the region. In this context, he recalls discussions within NATO at the beginning of the century, in which he participated, regarding the Gulf's importance as a strategic partner, stressing that the region has remained firmly on Washington's security agenda.
At the same time, he says the recent war exposed the limits of some traditional assumptions about deterrence. He argues that one reason for the shortcomings exposed by the crisis was the United States' decision to enter a war against Iran that proved more complex than initially anticipated.
Nevertheless, the ambassador does not expect any significant reduction in the US presence in the Gulf given the region's strategic importance, although US-Israeli relations could see more visible divergences on certain issues in the future.
US sailors watch a US Marine Corps F-35B stealth fighter land (CENTCOM).
Lessons Learned
The President of the NATO Defense College Foundation believes one of the key lessons of the war is the need to establish clear political and strategic objectives before engaging in any military confrontation. He warns against underestimating Iran as a regional power that will remain an influential actor regardless of the war's outcome.
As for the future of regional security, the former NATO official argues that a multi-level security approach represents the most realistic option for Gulf states, particularly if members of the Gulf Cooperation Council succeed in strengthening security and military integration.
"Security partnerships do not fully align in terms of objectives and interests, but diversifying them helps build a stronger safety net capable of addressing challenges," he says.
Smoke rises above the UAE emirate of Fujairah after earlier Iranian strikes (AFP).
Minuto-Rizzo argues that NATO provides an advanced institutional framework for security cooperation that goes beyond traditional bilateral relationships, citing the Istanbul Cooperation Initiative as a mechanism that offers broad opportunities for training, coordination and capacity-building between the alliance and Gulf countries.
He says renewing partnership with NATO could open significant opportunities for Gulf states, particularly Saudi Arabia, to benefit from the alliance's accumulated military and operational expertise while also enhancing strategic dialogue and consultation between military and political leaders, helping anticipate crises and prevent their escalation.
Minuto-Rizzo also stresses the importance of strengthening Europe's presence in the Gulf, arguing that Europe can make a meaningful contribution to regional security and stability through balanced partnerships based on shared interests rather than purely military considerations.
The President of the NATO Defense College Foundation concludes that the most important message for Arab states is the need to take control of their strategic decision-making and overcome divisions that have weakened the region for decades. Building a stable security architecture, he says, requires combining self-reliance with diversified international partnerships in a way that ensures balance and stability in a region that continues to face complex and constantly evolving challenges.
Two US AH-64 Apache attack helicopters fly over the Strait of Hormuz (CENTCOM).
Gold Falls as Renewed Middle East Tensions Fuel Inflation Fearshttps://english.aawsat.com/business/5279319-gold-falls-renewed-middle-east-tensions-fuel-inflation-fears
Gold Falls as Renewed Middle East Tensions Fuel Inflation Fears
Gold bracelets on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold prices fell on Monday as renewed US-Iran tensions pushed the dollar and oil prices higher, fuelling fears of inflation and reinforcing the higher-for-longer interest rate outlook.
Spot gold was down 0.7% at $4,506.49 per ounce at 1158 GMT after hitting a two-week high on Friday. The yellow metal dropped nearly 2% in May, its third consecutive monthly fall.
US gold futures for August delivery fell 1.2% to $4,536.70.
The dollar edged higher, making greenback-priced bullion more expensive for holders of other currencies, Reuters reported.
The US said it struck Iranian military sites over the weekend and Iran's Revolutionary Guards on Monday said they had targeted a US base in response, the latest exchange of attacks amid negotiations to end the three-month-old war.
"The optimism surrounding negotiations between the US and Iran aimed at ending the standoff in the Strait of Hormuz faded over the weekend," ActivTrades analyst Ricardo Evangelista said. "As a result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations."
Brent crude oil prices gained more than 3% after the latest strikes. Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment as a non-yielding asset.
Traders are now pricing in a Fed rate hike this year, with a 39% chance of a quarter-point increase in December, according to CME Group's FedWatch tool.
A host of Fed board members are set to speak this week, while major data releases are scheduled to include the ISM survey of manufacturing and the May payrolls report on Friday.
"Traders will be closely watching this week's key data releases as these have the potential to reshape expectations regarding the future path of Fed monetary policy, influencing demand for the US dollar and, consequently, the performance of gold prices," Evangelista said.
Spot silver rose 0.6% to $75.69 per ounce, platinum gained 1.3% to $1,941.15 and palladium was steady at $1,355.00.
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