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Oil Hovers Near Seven-month Highs Ahead of US-Iran Talks

FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
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Oil Hovers Near Seven-month Highs Ahead of US-Iran Talks

FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo

Oil prices edged higher on Wednesday, as investors weighed the threat of military conflict between the US and Iran that could disrupt supply and a big build in US crude inventories.

Brent futures were up 6 cents at $70.83 per barrel at 0957 GMT. WTI futures rose 4 cents to $65.67 per barrel.

Brent prices reached their highest since July 31 on Friday, while WTI hit its highest since August 4 on Monday, as the US positioned military ‌forces in ‌the Middle East to try to compel Iran to ‌negotiate ⁠an end to ⁠its nuclear and ballistic missile program.

An extended conflict could disrupt supplies from Iran, the third-biggest crude producer in the Organization of the Petroleum Exporting Countries, and other countries in the key Middle East producing region.

Supporting oil prices, US President Donald Trump briefly laid out his case for a possible attack on Iran in his State of the Union speech on Tuesday, saying he would ⁠not allow a country he described as the world's biggest ‌sponsor of terrorism to have a nuclear ‌weapon.

"This uncertainty means the market will continue to price in a large risk premium ‌and remain sensitive to any fresh developments," ING commodities strategists said on ‌Wednesday.

US envoys Steve Witkoff and Jared Kushner are due to meet an Iranian delegation for a third round of talks on Thursday in Geneva.

Iran's Foreign Minister Abbas Araqchi said on Tuesday that a deal with the US was "within reach, but ‌only if diplomacy is given priority.”

"Trump has warned that without a deal, there will be 'very bad consequences'. Whether (Iran's) concessions ⁠will meet ⁠the US's 'zero enrichment' red line remains to be seen," Tony Sycamore, IG market analyst, said in a note.

Amid the heightened tensions, Iran has accelerated talks to purchase Chinese anti-ship cruise missiles, according to Reuters sources, which could target the US naval forces that have assembled near the Iranian coast.

While geopolitical tensions have supported prices, the market is also contending with concerns of large inventory gains as global supply exceeds demand.

According to market sources, the American Petroleum Institute late on Tuesday reported a massive increase in US oil stockpiles of 11.43 million barrels in the week ended February 20.

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Moody's Affirms its Credit Rating of Saudi Arabia at 'Aa3' with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Moody's Affirms its Credit Rating of Saudi Arabia at 'Aa3' with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The credit rating agency Moody’s has affirmed Saudi Arabia’s credit rating at “Aa3” with a “stable” outlook.

The agency said Friday that the affirmation at Aa3 reflects Saudi Arabia’s large and wealthy economy, supported by its vast hydrocarbon endowment, and highly competitive position in global energy markets, alongside improving institutional and policy effectiveness.

Progress under Vision 2030 has underpinned solid non-hydrocarbon growth, supported by sustained public investment, structural reforms, and gradually improving fiscal and economic transparency.

Moody’s noted that Saudi Arabia’s stable outlook reflects the Kingdom’s resilience against regional geopolitical risks and potential trade disruptions, supported by strong and continued oil exports flexibility through the East-West pipeline and Red Sea terminals.

The agency also expects that the Kingdom’s progress on economic diversification is likely to continue and the momentum will be sustained over the coming years. It is supported by significant progress to date in implementing a broad-based reform agenda, including judicial, business and social reforms that have accelerated the development of the services sector and the broader non-oil economy.

Moody's expects non-hydrocarbon private sector GDP growth to return to around 4-5% after the Middle East conflict subsides, among the strongest rates in the Gulf Cooperation Council (GCC), reflecting ongoing structural reforms, sustained public investment and improving private sector participation.

Business

Morocco Farmers Saw Hope in Rain, but Mideast War Inflates Production Costs

A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
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Morocco Farmers Saw Hope in Rain, but Mideast War Inflates Production Costs

A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)

Like many Moroccan farmers, Mehdi el-Maazi was hopeful that rare heavy rains would yield an abundant harvest this year -- but those hopes were quickly shattered as the Middle East war sent fuel and fertilizer costs soaring.

Morocco, where agriculture employs about a quarter of the working population and where drought had persisted for seven consecutive years, recorded massive rainfalls last February and December.

Across the rural region of Marchouch, about 70 kilometres (43 miles) south of Rabat, landscapes that had long been parched have turned green again, and farmers have taken back to working their fields.

Following the rains this winter, the country expected a strong cereal harvest, with output estimated to reach nearly nine million tonnes -- more than double last year's. Overall agricultural output was also set to rise by about 15 percent from last season.

But the war in the Middle East, which began in late February, has disrupted maritime traffic through the Strait of Hormuz, not only sending global energy markets into a tailspin but also choking fertilizer supplies.

Prior to the war, Maazi would normally spend around 1,200 dirhams ($130) per hectare on diesel to run his tractor. Now, he said, the cost has climbed to 1,800 dirhams.

"We were happy at first about the arrival of the rain," said the 32-year-old lentil farmer. "But with the increase in diesel prices, everything changed."

Farmers also say higher fuel prices are driving up the cost of nearly everything needed to produce crops.

Abdelkader Toukati, another farmer in the area, said he hoped "the price of diesel will fall before the beginning of the harvest season".

High prices have meant that workers' wages have also risen and even "the cost of renting harvesting machines doubled", Toukati added.

Abdelaziz Drissi, who rents out agricultural machinery, also complained that there was little to no financial reward.

"There is no longer any profit," he said. "We are only working to pay for fuel."

Rising energy costs have had a direct impact on key farming supplies, driving up prices for seeds, fertilizers, pesticides and animal feed.

Livestock breeder Abdessadaq el-Fayd said grain feed prices had sharply risen in recent months.

"We used to buy it for 90 dirhams" per sack, he said. "Today, it costs 110 to 120 dirhams."

A recent report by the kingdom's High Commission for Planning projected economic growth of five percent in the first quarter of 2026, up from 4.1 percent in the previous quarter, driven in part by agricultural activity.

In an effort to alleviate rising costs, the Moroccan government in March announced aid for transport operators.

And last month, Prime Minister Aziz Akhannouch pledged to "improve distribution chains so that prices remain at a reasonable level".

But farmers interviewed by AFP said the measures have yet to rein in prices.

Rachid Benali, president of the Moroccan Confederation of Agriculture and Rural Development, said the price hikes "mainly concern fuels and nitrogen fertilizers".

But while the high costs "will have no impact on either volume or quality" of harvests, they "will automatically be reflected" in produce prices at markets, he added.

Business

Dollar Nears Six-week High; Mixed Signals on US-Iran Deal Feed Uncertainty

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)
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Dollar Nears Six-week High; Mixed Signals on US-Iran Deal Feed Uncertainty

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)

The dollar traded near six-week highs on Friday, after conflicting signals over a US-Iran peace deal whipped up volatility across financial markets, though investors latched on to hopes of some progress. Washington and Tehran stuck to opposing stances over the latter's uranium stockpile and control of the Strait of Hormuz, although US Secretary of State Marco Rubio said there had been "some good signs" in talks. The dollar rose 0.17% against a basket of six major currencies to 99.37, just shy of six-week highs.

The euro, which was headed for a second weekly loss, was down 0.2% on the day at $1.1594, while the pound was slightly lower at $1.342, having shrugged off data earlier that showed retail sales dropped by the most in nearly a year in April, as consumers felt the pinch of the inflationary effects of the Iran war. The dollar found additional support from US data, which showed weekly jobless claims fell last week while manufacturing activity rose to a four-year high in May, underscoring resilience in the world's largest economy.

"We're coming to the end of week 12, we're six weeks in the ceasefire, and I'm just not really that convinced we're any closer to a resolution between the US and Iran," Tony Sycamore, a market analyst at IG, said of the Middle East war.

"I still feel like the risks are for the US dollar to go higher, because I really just don't see a way out of this situation in the Middle East without them sort of needing to be more forceful."

The US dollar's strength and persistently high oil prices have spelled pain for the yen, which on Friday struggled on the weaker side of 159 per dollar. It was 0.1% lower at 159.09 per dollar. The yen is teetering even after likely intervention from Tokyo just weeks ago to support it. It has given up nearly 75% of its gains from the presumed intervention, which has left traders on alert for further moves by Japanese authorities.

"It's just buying time, really. What they need is a change in fundamentals, and I think the best thing that could happen is a quick deal to end the Iran conflict," said Lee Hardman, a currency strategist at MUFG.

"I don't think you'd see dollar/yen drop too sharply from here, but even if it just got back down into the mid 150s, taking some of the selling pressure off the yen, that would probably be the best they can hope for right now."

The Bank of Japan is only expected to raise borrowing costs gradually while other central banks, including the European Central Bank, are likely to deliver hikes far more quickly, which puts the yen at a disadvantage with investors who seek out extra returns from higher domestic interest rates.

On a trade-weighted basis, the yen is at record lows, which favours its exporters but compounds the energy-price shock, given Japan's reliance on imported goods. Data on Friday showed Japan's core inflation slowed to a four-year low in April, complicating the outlook for BOJ policy.

Currencies in emerging Asia have also come under immense pressure owing to the surge in global oil prices, forcing policymakers to take increasingly urgent and unusual steps to shore up their economies. The Turkish lira hit record lows against the dollar on Friday after a court ruling went against the main opposition party.