‘We Love Japan,’ Says Trump as He Welcomes Ishiba amid Simmering Trade Tensions

 President Donald Trump greets Japanese Prime Minister Shigeru Ishiba in the Oval Office of the White House, Friday, Feb. 7, 2025, in Washington. (AP)
President Donald Trump greets Japanese Prime Minister Shigeru Ishiba in the Oval Office of the White House, Friday, Feb. 7, 2025, in Washington. (AP)
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‘We Love Japan,’ Says Trump as He Welcomes Ishiba amid Simmering Trade Tensions

 President Donald Trump greets Japanese Prime Minister Shigeru Ishiba in the Oval Office of the White House, Friday, Feb. 7, 2025, in Washington. (AP)
President Donald Trump greets Japanese Prime Minister Shigeru Ishiba in the Oval Office of the White House, Friday, Feb. 7, 2025, in Washington. (AP)

US President Donald Trump welcomed Japanese Prime Minister Shigeru Ishiba at the White House on Friday as two allies wary of China's rise work to boost business and security ties while an escalating trade war threatens to rupture the global economy.

"We love Japan!" Trump said as he greeted Ishiba and the two shook hands.

Trump, whose first three weeks in office have shredded norms and shaken foreign capitals from Ottawa to Bogota, has taken a more conventional approach to Washington's longstanding Asia-Pacific allies, including Japan, South Korea, Australia and the Philippines.

But those friendships may be tested as Trump's early fight with China over synthetic opioids and warnings of tariffs against other countries - Japan included - threaten to disrupt commercial relations in Asia and beyond.

A senior Trump administration official told reporters the leaders would discuss military training exercises, increased cooperation on defense equipment and technology, foreign investment and energy.

They will also discuss cybersecurity, space and joint business opportunities in the artificial intelligence and semiconductor sectors, the official said.

"The United States is proud of our long and close alliance with Japan," the official said. "Our two nations will continue to work together to ensure we deter threats in the region through our full range of military capabilities," the official said.

Asked about the US trade deficit with Japan and the threat of tariffs, a second senior Trump administration official said: "We all know that President Trump pays a lot of attention to deficits as an indication of the economic fairness and strength of the relationship so I'm sure discussions will happen about that."

Trump told Republican lawmakers he plans to announce more reciprocal tariffs on foreign imports as early as Friday, two sources familiar with the plans told Reuters.

Trump put a 10% tariff on all imports from China in what he called an "opening salvo" in a clash between the world's two largest economies, sending consumers and businesses scrambling to adjust.

Japan is especially trade-dependent: it is a major exporter and counts on imports for much of its food and natural resources, and many of its firms are deeply invested in and reliant on China.

Tokyo shares the hawkish outlook towards China of Trump's national security team over Beijing's global ambitions and extensive territorial claims in Asia, including the vital chip-producing island of Taiwan.

At the same time, Japanese officials are wary of possible efforts by Beijing to court the US president with promises of cooperation on key global issues, including trade. Trump spoke to Chinese President Xi Jinping days before taking office and has said he will discuss tariffs with him soon.

Japanese officials speaking privately say they are comfortable in dealing with Trump's China hawks, including Secretary of State Marco Rubio and national security Michael Waltz, but less so with those in the administration with strong business ties with Beijing, such as billionaire Elon Musk, who has developed a significant Washington power base.

Trump and Ishiba are due to hold a joint press conference on Friday afternoon.

BRACING FOR TRUMP DEMANDS

For Tokyo, the early White House visit is a promising signal from the new Trump administration.

"There's two foreign heads of state that have been received in the Oval Office," said Rahm Emanuel, Biden's ambassador to Tokyo. "That's Bibi Netanyahu of Israel, and Japan. So that's a good thing, and that's a good sign."

Trump was close with the late Japanese Prime Minister Shinzo Abe but has no relationship with Ishiba, who took office in October. That is something Japanese officials want to change, and they plan to invite Trump to visit Japan.

Japan is girding for Trump to demand concessions to reduce the $56 billion bilateral trade surplus and stave off the threat of tariffs.

Tokyo has been preparing some concessions, officials told Reuters, including considering to buy more LNG from the United States and offering support for a $44 billion gas pipeline in Alaska. SoftBank CEO Masayoshi Son has also promised to invest hundreds of billions in artificial intelligence in the US.

"The Japanese are definitely thinking of ways to both reduce the deficit and create jobs in the United States in industrial sectors that are of particular interest to Donald Trump," said Kenneth Weinstein, head of Japan program at Washington's conservative Hudson Institute think tank.

There are tensions beyond trade, including the attempted takeover of US Steel by Japan's Nippon Steel. Former President Joe Biden blocked this but delayed enforcement pending legal action; Trump has also vowed to block the deal.

However, there are also solid signs of stability and the two leaders are expected to agree language on security issues, including China and Taiwan, according to another official familiar with the discussions.

Discussions are also expected on North Korea, and the Trump official noted that the administration was committed to the complete denuclearization of North Korea, while the President had voiced his openness to engaging with North Korea. Trump did this in his first term, although little came of the effort.



European Oil and Gas Stocks Hit Record High, Surpassing 2007 Level

The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
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European Oil and Gas Stocks Hit Record High, Surpassing 2007 Level

The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann
The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann

The European oil and gas stocks index hit a record high on Monday, surpassing a previous record hit in 2007, helped in recent weeks by a rise in the price of oil, Reuters reported.

At 1450 in London the basket was up 1.5%. Oil and gas names have added 17% year-to-date versus a 6.5% rise for the pan-European STOXX 600 index.

Brent rose as high as $72.44 a barrel on Monday a six month high. It has risen nearly 19% so far in 2026 as investors worry about US military action in Iran.


Oil Hovers Near Six-month High with Nuclear Talks and US Tariffs in Focus

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
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Oil Hovers Near Six-month High with Nuclear Talks and US Tariffs in Focus

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo

Oil prices steadied near a six-month high on Monday as the US and Iran prepared for a third round of nuclear talks while increased economic uncertainty was also in focus after the latest US tariff upheaval.

Brent crude futures were up 9 cents at $71.85 a barrel by 1308 GMT while US West Texas Intermediate crude gained 15 cents to $66.63, Reuters reported.

Growing concern over potential military conflict between the US and Iran pushed Brent prices up more than 5% last week to their highest since July 2025 at $72.34.

"With the next, and possibly last, round of the Iranian nuclear talks not until Thursday, focus is on the US Supreme Court’s decision to strike down import tariffs and the subsequent reaction from the government," said PVM Oil Associates analyst Tamas Varga.

The US Customs and Border Protection agency said it would halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST (0501 GMT) on Tuesday.

However, Trump said on Saturday that he would raise a temporary tariff from 10% to 15% on US imports from all countries, the maximum allowed under the law, after the US Supreme Court struck down his previous tariff program.

"This morning’s weakness is a defensive move, and needless to say, with the uncertainty surrounding a US military intervention in Iran, the ongoing Russian-Ukrainian war and now the US Supreme Court’s decision, oil price direction is not (clear), but volatility is guaranteed," PVM's Varga said.

Iran has indicated it is prepared to make concessions on its nuclear program in return for the lifting of sanctions and recognition of its right to enrich uranium, a senior Iranian official told Reuters ahead of Thursday's third round of nuclear talks between the two nations.

While prices on paper had moved higher, softer prompt spreads and weaker physical differentials pointed to pricing being based on geopolitical concerns rather than an actual lack of oil in the market, Morgan Stanley analysts said in a note.


Chevron, Iraq Agree to Exclusive Talks Over West Qurna 2 Oilfield 

A view of West Qurna oilfield is seen in Basra, southeast of Baghdad, March 29, 2014. (Reuters)
A view of West Qurna oilfield is seen in Basra, southeast of Baghdad, March 29, 2014. (Reuters)
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Chevron, Iraq Agree to Exclusive Talks Over West Qurna 2 Oilfield 

A view of West Qurna oilfield is seen in Basra, southeast of Baghdad, March 29, 2014. (Reuters)
A view of West Qurna oilfield is seen in Basra, southeast of Baghdad, March 29, 2014. (Reuters)

Chevron has entered into exclusive talks with Iraq over the giant West Qurna 2 oilfield, moving closer to acquiring the field from sanctioned Russian oil firm Lukoil.

The talks, which Chevron said will include the exchange of confidential data, could expand the US oil major's footprint in ‌Iraq after ‌the country decided to nationalize the West ‌Qurna 2 ⁠field and unwind ⁠Lukoil's interest in the project.

Iraq nationalized the field last month after the US imposed sanctions on Lukoil to put pressure on Russia to end its war in Ukraine.

EXCLUSIVE NEGOTIATION RIGHTS FOR ONE YEAR

Iraqi Prime Minister Mohammed Shia al-Sudani's office confirmed the signing of the deal between Chevron and the Basra Oil Company.

The agreement between ⁠BOC, Lukoil and Chevron allows for the temporary ‌transfer of the West Qurna ‌2 contract to BOC, which will subsequently assign it to Chevron after ‌terms of the new contract are agreed, al-Sudani's office said in ‌a statement.

Chevron will have exclusive negotiation rights for one year, al-Sudani's office said.

Iraq's government must approve the agreements, and certain steps are contingent upon other approvals including from the US Office of Foreign ‌Assets Control, Chevron said.

Competitive economic terms will be essential to upcoming negotiations, Chevron added.

'AMICABLE SETTLEMENT' WITH ⁠LUKOIL

The Iraqi ⁠cabinet approved last week an "amicable settlement" with Lukoil over the transfer of operations of the oilfield to BOC. Lukoil has until February 28 to sell its assets under the sanctions.

West Qurna, one of the world's largest oilfields, accounts for about 0.5% of global oil supply and nearly 10% of Iraq's output.

A deal for Chevron in West Qurna 2 would mark a further push into Iraq for the US oil major.

It has agreed to develop several fields in the country as part of an international expansion since completing a deal to acquire US oil producer Hess for $53 billion in 2025.