Italy Forges on with World's Largest Suspension Bridge

(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
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Italy Forges on with World's Largest Suspension Bridge

(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)

Italy hopes to begin constructing the world's largest suspension bridge connecting Sicily to the Italian mainland this summer amid widespread skepticism that it will ever be built.

The 13.5-billion-euro ($15.3-billion) project would carry trains and six lanes of traffic, allowing cars to cross the Strait of Messina in 15 minutes, AFP reported.

Giorgia Meloni's hard-right government hopes to boost the economy of the impoverished region, although critics say there are better ways to do this -- and many believe that after decades of false starts, the bridge will never actually happen.

The choppy waters between the eastern tip of Sicily and the western edge of the region of Calabria are legendary as the place where monsters Scylla and Charybdis terrified sailors in Homer's epic poem "The Odyssey".

These days the challenges are more prosaic, from winds of more than 100 kilometers an hour (62 mph) to the real risk of earthquakes in a region that lies across two tectonic plates.

The government says the bridge will be at the cutting edge of engineering, with the section suspended between its two pillars stretching 3.3 kilometers, the longest in the world.

But critics point to a long history of public works announced, financed and never completed in Italy, whether due to corruption or political instability, resulting in enormous losses for taxpayers.

"The public does not trust this political class and these projects that become endless construction sites," said Luigi Storniolo, a member of protest group No Ponte (No Bridge).

Infrastructure Minister and Deputy Prime Minister Matteo Salvini, one of the main champions of the project, insists it will be a game-changer for the local economy.

"The bridge will be a catalyst for development," he said on a recent visit to Reggio di Calabria, the city where the bridge will begin.

The government hopes to boost trade in Sicily, which currently suffers from an "insularity cost" of around 6.5 billion euros a year, according to regional authorities.

Meloni's ministers are expected to give their final approval to the project -- which Rome will fund -- later this month, and Salvini insists construction will begin this summer.

But work had already been announced for the summer of 2024, before being postponed -- a common theme in the history of the bridge, the idea of which dates back to the unification of Italy at the end of the 19th century.



Oil Prices Spike after US Strikes on Iran

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Prices Spike after US Strikes on Iran

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices surged and Asian markets traded lower on Monday on concerns of disruption to energy markets after US air strikes on Iran's nuclear facilities.

The dollar strengthened as traders assessed the weekend's events, with Iran threatening US bases in the Middle East as fears grow of an escalating conflict in the volatile region.

Iran is the world's ninth-biggest oil-producing country, with output of about 3.3 million barrels per day.

It exports just under half of that amount and keeps the rest for domestic consumption.

If Tehran decides to retaliate, observers say one of its options would be to seek to close the strategic Strait of Hormuz -- which carries one-fifth of global oil output.

When trading opened on Monday, Brent and the main US crude contract WTI both jumped more than four percent to hit their highest price since January.

They pared these gains however and later in the morning Brent was up 2.1 percent at $75.43 per barrel and WTI was 2.1 percent higher at $78.64.

Economists at MUFG warned of "high uncertainty of the outcomes and duration of this war", publishing a "scenario analysis" of an oil price increase of $10 per barrel.

"An oil price shock would create a real negative impact on most Asian economies" as many are big net energy importers, they wrote, reflecting the market's downbeat mood.

Tokyo's key Nikkei index was down 0.6 percent at the break, with Hong Kong losing 0.4 percent and Shanghai flat. Seoul fell 0.7 percent and Sydney was 0.8 percent lower.

'Extreme route'

The dollar's value rose against other currencies but analysts questioned to what extent this would hold out.

"If the increase proves to be just a knee-jerk reaction to what is perceived as short-lived US involvement in the Middle-East conflict, the dollar's downward path is likely to resume," said Sebastian Boyd, markets live blog strategist at Bloomberg.

US Defense Secretary Pete Hegseth said Sunday that the strikes had "devastated the Iranian nuclear program", though some officials cautioned that the extent of the damage was unclear.

It comes after Israel launched a bombing campaign against Iran earlier this month.

Chris Weston at Pepperstone said Iran would be able to inflict economic damage on the world without taking the "extreme route" of trying to close the Strait of Hormuz.

"By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas," he wrote.

At the same time, "while Trump's primary focus will be on the Middle East, headlines on trade negotiations could soon start to roll in and market anxieties could feasibly build".