War Decimates Harvest in Sudan

Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
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War Decimates Harvest in Sudan

Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)

Ahmed Othman's farm has been spared from the deadly fighting that has spread across Sudan, but the war's toll on the economy and labor market has still reached him.

"I had to sell two vehicles" to afford to harvest this season's crops, he told AFP from his large sesame farm in eastern Sudan's Gedaref state.

A year and a half of war in Sudan between the army and the Rapid Support Forces (RSF) has triggered one of the world's worst humanitarian crises and devastated harvests.

Last month, United Nations experts accused the warring sides of using "starvation tactics" against 25 million civilians, and three major aid organizations warned of a "historic" hunger crisis as families resort to eating leaves and insects.

Hundreds of farmers have been driven off their once-fertile lands and those who have managed to remain face tremendous hardships.

Gedaref state is key to Sudan's corn production, a crucial crop for a population the World Food Programme warns is nearing famine -- a condition already declared at a displacement camp in the country's western region of Darfur.

"The first challenge we faced was securing funding as banks are experiencing a cash crunch due to the war," said Othman.

Cash shortages have occurred even in army-controlled Gedaref since the RSF took over the capital Khartoum and banks were ransacked.

The farmer said that without selling two out of his three vehicles he could not have afforded fuel for farm machinery or to pay workers to prepare the fields and tend to the crops.

"The second problem is the scarcity of farm workers due to the war, which has limited their movement across states," he added.

Most workers in Gedaref previously came from the adjacent states of Blue Nile and Sennar, as well as from Kordofan further away.

However, the war has restricted inter-state movement, leaving farm owners like Othman with only a small workforce.

Another local farmer, Suleiman Mohamed, said "the shortage of workers has driven up wages, so we are relying on those already in the area, mainly Ethiopians" who have long resided in Sudan's east as refugees.

War began in April 2023 between the army under the country's de facto ruler Abdel Fattah al-Burhan and the RSF, led by his former deputy Mohamed Hamdan Daglo.

Disruptions to the harvest this season could exacerbate the hunger crisis, made worse by restrictions on aid entry.

European and North American nations issued a joint statement last month that accused the warring sides of "systematic obstruction" of aid efforts. They said both sides should urgently admit the assistance to millions of people in dire need.

In southern Gedaref, another farmer, Othman Abdelkarim, said many have already given up on this year's season.

"Most of us have relied on ourselves for financing, and some simply opted out and didn't plant," he said, pointing to an unplanted field west of his farm.

"This crisis will delay the harvest and affect its quality," he added.

The state's agriculture ministry reported that nine million acres (3.6 million hectares) were cultivated in Gedaref this year -- five million with corn and the rest with sesame, sunflowers, peanuts and cotton.

That is less than half of the roughly 20 million acres planted annually before the war.

Farmer Suleiman Mohamed fears there is no hope for this season's crop.

"With fewer workers and delayed harvesting, we'll face losses, and part of the crop will be lost," he said from his farm in eastern Gedaref.



Japan, South Korea Say Ready to Act Against FX Volatility

FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
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Japan, South Korea Say Ready to Act Against FX Volatility

FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo
FILE PHOTO: Japan's Finance Minister Satsuki Katayama speaks on the day Japan's Prime Minister Sanae Takaichi delivers her policy speech in the parliament, in Tokyo, Japan, February 20, 2026. REUTERS/Kim Kyung-Hoon/File Photo

Japan and South Korea expressed concern on Saturday about the rapid declines in their currencies, saying they were ready to act against excessive foreign-exchange volatility.

Finance Ministers Satsuki Katayama of Japan and Koo Yun-cheol of South Korea "expressed serious concern over the recent sharp depreciation of the Korean won and the Japanese yen," they said in a statement after their annual meeting in Tokyo.

The yen and won have slid as mounting tensions from the US-Israeli war on Iran have driven the dollar higher ⁠on safe-haven demand and ⁠battered the currencies of countries heavily reliant on imported oil.

"Furthermore, they reaffirmed that they will closely monitor foreign exchange markets and continue to take appropriate actions against excessive volatility and disorderly movements in exchange rates," the statement said.

The yen touched its lowest in 20 ⁠months on Friday and is near the line of 160.00 to the dollar that many in the market think might prompt Japan to intervene to support the currency. The won breached a psychological barrier of 1,500 per dollar this month for the first time since March 2009.

Tokyo and Seoul shared the view that significant volatility had emerged in financial markets, including foreign exchange, Katayama told a press conference after the meeting.

"The Japanese government ⁠is ⁠fully prepared to respond at any time, bearing in mind the impact that currency moves may have on people's livelihoods amid surging oil prices, and I believe both sides share that understanding," she said.

Katayama regularly says Japan is ready to act regarding yen moves, although some policymakers privately say that intervening to prop up the yen now could prove futile, as the flood of dollar demand will only intensify if the war persists.


BP Wins US Approval for Kaskida Project in Gulf of Mexico

FILE PHOTO: 3D-printed oil pump jacks and the British Petroleum (BP) logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: 3D-printed oil pump jacks and the British Petroleum (BP) logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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BP Wins US Approval for Kaskida Project in Gulf of Mexico

FILE PHOTO: 3D-printed oil pump jacks and the British Petroleum (BP) logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: 3D-printed oil pump jacks and the British Petroleum (BP) logo appear in this illustration taken March 2, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

British energy major BP has received approval from the Trump administration to advance its Kaskida project in the Gulf of Mexico, a company spokesperson told Reuters in an emailed statement late ⁠on Friday.

The $5 billion ⁠investment would unlock 10 billion barrels of resources that BP has discovered in the Paleogene fields of the US Gulf, the spokesperson said.

The US Department of ⁠the Interior's approval of Kaskida follows a year-long review of the company's development plan, the statement said, according to Reuters.

Bloomberg News first reported on Friday that the Kaskida project is scheduled to start crude production in 2029. The Kaskida project will follow BP’s 2023 start-up of the Argos project, which ⁠was ⁠its first platform launch in the US. Gulf since 2008 and the first since the Deepwater Horizon disaster.

The explosion of BP's Deepwater Horizon rig in April 2010 killed 11 rig workers and caused $70 billion in damages in the largest oil spill in US history.


S&P: Saudi Arabia’s Robust Economy Guarantees its Ability to Withstand Regional Conflict

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
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S&P: Saudi Arabia’s Robust Economy Guarantees its Ability to Withstand Regional Conflict

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Credit ratings agency S&P Global affirmed Saudi Arabia’s sovereign credit rating at “A+/A-1,” with a “stable outlook” on Friday.

The agency said that the Kingdom was well-positioned to withstand the ongoing conflict in the Middle East.

S&P stated in a press release that “the outlook reflects the Kingdom’s ability to redirect oil exports to the Red Sea port via the East-West oil pipeline, utilize its large oil storage capacity, and its ability to increase oil production post-conflict.”

It noted that “the outlook also reflects our view that non-oil growth momentum and associated non-oil revenues, as well as the government’s ability to calibrate investment expenditure tied to Vision 2030, should support the economy and fiscal trajectory.”

S&P forecast real GDP growth of 4.4% for 2026, saying real GDP growth will average 3.3% per year for 2027-2028.

It said the government diversifying away from oil, economic volatility is starting to decrease--albeit sensitivity to oil remains. “The non-oil sector (including government activities) now accounts for about 70% of GDP, up from 65% in 2018. This structural shift is a key objective of Vision 2030,” the agency noted.

It added that “Saudi Arabia’s substantial asset position should remain a key strength over our forecast period even as gross debt rises.”

The ratings agency noted that before the conflict, the government in Riyadh had already been looking at adjusting spending on diversification projects tied to Vision 2030 to manage plans more in line with available resources.

Saudi Arabia's Vision 2030, the Kingdom's “long-term transformation” plan, has a fiscal policy that is expansive to encourage economic diversification. This has been done despite oil price volatility which has put pressure on public finances.

The agency said: “We expect the authorities will continue to adopt a prudent and flexible approach in this regard, having stressed a commitment to achieving Vision 2030 goals without jeopardizing public finances.”

The US and Israeli war on Iran is causing the Strait of Hormuz to be close to shutting down, forcing regional producers to reduce oil output.