India to Ramp Up Purchases of US Oil, Arms, Aircraft; Open Some Farm Access

FILE PHOTO: US President Donald Trump and Indian Prime Minister Narendra Modi shake hands, at the White House in Washington, D.C., US, February 13, 2025. REUTERS/Kevin Lamarque/File Photo/File Photo
FILE PHOTO: US President Donald Trump and Indian Prime Minister Narendra Modi shake hands, at the White House in Washington, D.C., US, February 13, 2025. REUTERS/Kevin Lamarque/File Photo/File Photo
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India to Ramp Up Purchases of US Oil, Arms, Aircraft; Open Some Farm Access

FILE PHOTO: US President Donald Trump and Indian Prime Minister Narendra Modi shake hands, at the White House in Washington, D.C., US, February 13, 2025. REUTERS/Kevin Lamarque/File Photo/File Photo
FILE PHOTO: US President Donald Trump and Indian Prime Minister Narendra Modi shake hands, at the White House in Washington, D.C., US, February 13, 2025. REUTERS/Kevin Lamarque/File Photo/File Photo

India has agreed to buy petroleum, defense goods, and aircraft from the US, while partly opening up its highly-guarded agriculture sector under a trade deal, according to a government official, as the two sides reconcile after months of tensions.

President Donald Trump announced a trade deal with India on Monday that slashes US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.

Trump said India agreed to buy more American goods with purchases rising to as much as $500 billion including energy, coal, technology, agricultural and other products.

The Indian government official, who ‌did not want ‌to be named, said India has agreed to ‌buy ⁠US goods including ‌telecom and pharmaceuticals and offered market access for some agricultural products, as part of New Delhi's commitments under the deal.

India recently offered select market access for agricultural products to the European Union under a trade deal.

The Asian nation has also lowered tariffs on imported cars to address Washington's immediate US demands to conclude the first tranche of the deal, the official added.

India's trade ministry did not ⁠immediately reply to an e-mail seeking comment.

India's exports to the US rose 15.88% year-on-year to $85.5 billion in ‌January-November, while imports stood at $46.08 billion, Indian government ‍data showed.

"The commitment to buy ‍US products covers sectors like pharmaceuticals, telecom, defense, petroleum and aircraft. It will ‍be done over the years," the official told Reuters.

The official said a more comprehensive pact with the US will be negotiated over coming months.

DEAL LIFTS SENTIMENT

The announcement of a trade deal between India and United States has reduced a great deal of global uncertainty, India's economic affairs secretary, Anuradha Thakur, said at an event in New Delhi on Tuesday.

It also lifted investor sentiment. ⁠India's benchmark stock index, the Nifty 50, was up nearly 3% and the rupee climbed over 1% to 90.40 per dollar in early trading.

The 18% tariff offered to India is lower than its Asian peers and comes right in time as exporters are still negotiating annual contracts with their US customers, the official said.

Among Asian nations, US tariffs on goods from Indonesia stand at 19% while the rate for Vietnam and Bangladesh stands at 20%.

"Lower tariffs will not only improve price competitiveness but also help Indian exporters integrate more deeply into US supply chains,” said S.C. Ralhan, president of the Federation of Indian Export Organizations.

Reduction in US ‌tariffs on most Indian goods will reinvigorate India's goods exports to the US, Moody's Ratings said in a statement on Tuesday.



Saudi Index Extends Gains

An investor monitors the Saudi stocks (AFP)
An investor monitors the Saudi stocks (AFP)
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Saudi Index Extends Gains

An investor monitors the Saudi stocks (AFP)
An investor monitors the Saudi stocks (AFP)

Most Gulf stock markets rose in early trade on Sunday, with the Saudi index extending gains to a fifth session.

Saudi Arabia's benchmark index .TASI climbed 2%, with all of its constituents posting gains, led by energy and materials stocks.

Saudi Aramco advanced 4% and Yanbu National Petrochemical surged 10%.

The Qatari benchmark .QSI rose 0.1%, with Mesaieed Petrochemical Holding gaining 5.3% and telecommunications company Ooredoo adding 2.1%.

In Muscat, ⁠the ⁠share index .MSX30 was up 1.4% and Bahrain's index .BAX edged up 0.2%.

Kuwait's index .BKP eased 0.5%, with most stocks in negative territory.

Kuwait Petroleum Corporation began cutting oil output on Saturday and declared force majeure, adding to earlier oil and gas reductions from Iraq and Qatar as the US-Iran war blocked shipments from the Middle East for the eighth consecutive day.


Kuwait Makes Precautionary Cut in Oil Production

The Kuwait Petroleum Corporation (X)
The Kuwait Petroleum Corporation (X)
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Kuwait Makes Precautionary Cut in Oil Production

The Kuwait Petroleum Corporation (X)
The Kuwait Petroleum Corporation (X)

The Kuwait Petroleum Corporation (KPC) said on Saturday it has implemented a precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy.

The decision came “in light of the ongoing aggression by Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz,” KPC said in a statement.

KPC affirmed the adjustment is strictly precautionary and will be reviewed as the situation develops.

“The corporation remains fully prepared to restore production levels once conditions allow. KPC stresses that all domestic market needs remain fully secured in accordance with established plans,” the statement said.

It added that KPC remains committed to prioritizing employee safety, safeguarding Kuwait's national assets, and promoting stability within global energy markets.

The statement said further updates will be provided as appropriate.

On Friday, West Texas Intermediate (WTI) crude futures climbed more than 10%, pulling closer to Brent as buyers sought available barrels, with Middle Eastern supply constrained by the effective closure of the Strait of Hormuz amid the expanding US-Israeli conflict with Iran.

Brent crude futures were up $5.42, or 6.35%, at $90.83 a barrel, while WTI was up $7.81, or 9.81%, at $89 a barrel.

Kuwait’s reduction in crude oil production will put pressure on crude prices, which analysts said could hit $100 per barrel as the security situation in the Middle East spirals.

Qatar Energy Minister Saad al-Kaabi told the Financial Times in an interview published on Friday that his country expects all Gulf energy producers to shut down exports within weeks if the Iran conflict continues and drives oil to $150 a barrel.

Qatar halted its production of liquefied natural gas on Monday, as Iran continued to strike Gulf countries in retaliation for Israeli and US attacks.

Oil supply equal to about 20% of world demand usually passes through the Strait of Hormuz each day. With the Strait now effectively closed for seven days, that means about 140 million barrels of oil — equal to about 1.4 days of global demand — has been unable to reach the market.


Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port
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Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

The Saudi Ports Authority (Mawani) announced the addition of Hapag-Lloyd’s SE4 shipping service to Jeddah Islamic Port, a move designed to bolster the Kingdom's maritime competitiveness and global trade connectivity, reported the Saudi Press Agency on Saturday.

This new route links Jeddah to major international hubs, including Tianjin Xingang, Qingdao, Ningbo, and Shanghai in China, as well as Busan in Korea and Tanjung Pelepas in Malaysia.

Boasting a capacity of up to 17,000 TEUs, the service aligns with the National Transport and Logistics Strategy to establish Saudi Arabia as a leading global logistics hub connecting three continents.

Jeddah Islamic Port continues to expand its operational footprint, utilizing its 62 multi-purpose berths and specialized terminals to support a total handling capacity of 130 million tons.