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US Says it Will Not Hit Iran Energy Sector

FILE PHOTO: US President Donald Trump and Secretary of Energy Chris Wright attend a roundtable on the Ratepayer Protection Pledge in the Indian Treaty Room in the Eisenhower Executive Office Building on the White House campus in Washington, D.C., US, March 4, 2026. REUTERS/Nathan Howard/File Photo
FILE PHOTO: US President Donald Trump and Secretary of Energy Chris Wright attend a roundtable on the Ratepayer Protection Pledge in the Indian Treaty Room in the Eisenhower Executive Office Building on the White House campus in Washington, D.C., US, March 4, 2026. REUTERS/Nathan Howard/File Photo
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US Says it Will Not Hit Iran Energy Sector

FILE PHOTO: US President Donald Trump and Secretary of Energy Chris Wright attend a roundtable on the Ratepayer Protection Pledge in the Indian Treaty Room in the Eisenhower Executive Office Building on the White House campus in Washington, D.C., US, March 4, 2026. REUTERS/Nathan Howard/File Photo
FILE PHOTO: US President Donald Trump and Secretary of Energy Chris Wright attend a roundtable on the Ratepayer Protection Pledge in the Indian Treaty Room in the Eisenhower Executive Office Building on the White House campus in Washington, D.C., US, March 4, 2026. REUTERS/Nathan Howard/File Photo

The United States will spare Iran's energy infrastructure as it wages war with Israel against Tehran, Energy Secretary Chris Wright said Sunday.

With oil prices rising dramatically, he told CNN that disruptions to the petroleum and gas industry will be short lived -- "worst case, that's a few weeks. That's not months."

Israel attacked oil storage facilities Saturday in and around Tehran, sparking huge fires in the first such attacks reported since the war started last weekend. Wright seemed to downplay them.

"These are Israeli strikes, these are local fuel depots to fill up the gas tank," Wright said.

He added: "The US is targeting zero energy infrastructure. There are no plans to target Iran's oil industry, their natural gas industry, or anything about their energy industry."

The war has all but shut down the Strait of Hormuz, through which nearly 20 percent of the world's crude oil and about 20 percent of liquefied natural gas usually transit.

Energy markets have been roiled by this disruption and oil prices shot up. West Texas Intermediate, the US benchmark for oil, rose 12 percent just on Friday and is up 36 percent in a week.

"They shouldn't go much higher than they are here because the world is very well supplied with oil," Wright told CBS. "There's no energy shortage in all of the Western hemisphere."

US insurer AAA said US gasoline prices at the pump have gone up 16 percent in a week and diesel by 22 percent.

The website GasBuddy says diesel fuel, used extensively in trucking, had not been this expensive since February 2023.

Gasoline prices are closely watched in this country where cars are king and they could become a factor as America heads toward mid-term elections in November. Trump's approval rating was low even before the war.

"What you're seeing is emotional reactions and fear that this is a long term war," Wright said on CBS, according to AFP. "This is not a long-term war."

He said the United States is now talking with shipping companies eager to get their vessels out of the Gulf.

"Early tankers probably will involve some direct protection by the US military" to get through the Strait of Hormuz, he said, adding that he thinks traffic will return to normal "relatively soon."

Iran accounts for about four percent of world oil production, according to the US Energy Information Administration.

Its oil industry is subject to international sanctions but some is still exported, mainly to China, oil industry data shows.

US Treasury Secretary Scott Bessent said Friday the government was considering lifting sanctions on more Russian oil, a day after it temporarily authorized India to buy from Moscow as global oil prices surged.

The US International Development Finance Corporation also said Friday it is creating a reinsurance mechanism of up to $20 billion to cover risk associated with travel through the Strait of Hormuz.

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Business

Iran War Sends Shockwaves Through African Fuel Market and Economies

A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
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Iran War Sends Shockwaves Through African Fuel Market and Economies

A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)

Surging oil prices triggered by the war with Iran are rippling across African economies, threatening higher fuel costs, rising inflation and renewed pressure on currencies across the continent.

Africa imports most of the petroleum products it consumes, leaving many economies highly vulnerable to supply disruptions tied to tensions in the Middle East, a region central to global oil flows.

"Africa is a net importer of oil products, meaning it is heavily exposed to shocks like these," said Nick Hedley, an energy transition research analyst at Zero Carbon Analytics.

When global oil supplies tighten, Nedley said, prices rise while African currencies often weaken as investors move funds into safe-haven assets such as the US dollar.

That combination amplifies the impact of price spikes in import-dependent markets such as Kenya and Ghana.

A similar dynamic unfolded after Russia's full-scale invasion of Ukraine in 2022, when rising crude prices and a weakening currency pushed transport fuel prices in South Africa up by more than 25% within six months, Hedley said.

"The near-term risks come from mainly the rising oil prices and weakening exchange rates as investors move to safe-haven assets," said Oxford Economics senior economist Brendon Verster.

Oil markets remain particularly sensitive to the conflict because of the strategic importance of the Strait of Hormuz, a narrow shipping corridor through which about a fifth of the world’s crude passes.

The impact of higher oil prices across Africa will be uneven.

Countries like Kenya and Uganda say their supply remain stable even as they work on ensuring continuity. Nigeria and Ghana produce crude oil but import most of their refined petroleum products, limiting the benefits to them of higher global prices.

"It’s difficult to say at this point whether they will see net gains," Hedley said. "Oil producers could benefit from higher crude prices, but ordinary citizens will likely face higher transport and fuel costs, and potentially higher interest rates."

Still, sustained high prices could bring a windfall for Africa’s major oil exporters. Verster noted that Nigeria exports roughly 1.5 million barrels of oil per day and has based its medium-term fiscal framework on oil prices between $64 and $66 per barrel through 2028.

The war pushed prices above $100 per barrel Monday, a level that if sustained, would significantly boost revenues for exporters including Angola, Algeria and Libya.

For most African households, however, the immediate effect is likely to be higher living costs.

"This is a serious concern," Hedley said, noting that most food and goods across Africa are transported by road. "Rising fuel costs therefore feed quickly into broader inflation and reduce household purchasing power."

Peter Attard Montalto, managing director at South African advisory firm Kruthan said the crisis is also testing African economies.

"So far the impact has really been muted, for countries like South Africa," he said, noting that recent economic reforms have helped stabilize the country’s currency and bond markets.

"Still, higher oil and gas prices are expected to filter into inflation in the coming months," Montalto said.

Countries already operating under programs from the International Monetary Fund could face additional strain as energy import bills drain scarce foreign exchange reserves. Among the most vulnerable, analysts warn are Sudan, The Gambia, Central African Republic, Lesotho and Zimbabwe.

Over the longer term, analysts say the crisis may reinforce calls for African nations to diversify their energy systems and reduce dependence on imported fuels.

"It makes strategic sense for African countries to ensure long-term energy security and sovereignty," said Kennedy Mbeva, a research associate at the Center for the Study of Existential Risk at the University of Cambridge.

Achieving that, Mbeva said, will require balancing short-term fiscal pressures with long-term investments in clean energy and green industrialization.

Business

Bahrain's Bapco Declares Force Majeure after Iran Strikes

Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
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Bahrain's Bapco Declares Force Majeure after Iran Strikes

Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer

Bahrain's state-owned energy company Bapco declared force majeure after waves of Iranian strikes targeted the country's energy installations, the company said in a statement on Monday.

Bapco "hereby serves notice of force majeure on its group operations which have been affected by the ongoing regional conflict in the Middle East and the recent attack on its refinery complex", said a statement posted by the company.

An eyewitness reported on Monday seeing thick smoke rising from the Bapco oil refinery in Bahrain. The witness added that the smoke engulfed the refinery after the government had earlier announced injuries and damage in the Sitra area following an attack by an Iranian drone.

Bapco is Bahrain’s main oil refinery and a critical facility in the country’s energy sector.

Business

Gold Prices Fall on Dollar Strength, Fading US Rate-cut Hopes

Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
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Gold Prices Fall on Dollar Strength, Fading US Rate-cut Hopes

Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)

Gold prices fell on Monday, as a stronger US dollar weighed on the greenback-priced bullion, while higher energy costs fueled inflation concerns and further dimmed the prospects for near-term reductions in interest rates.
Spot gold shed 1.4% to $5,097.70 per ounce as of 0750 GMT, after falling more than 2% earlier in the session. US gold futures for April delivery lost ‌1% to $5,106.
The ‌dollar rose to a more than three-month ‌high, ⁠making bullion more expensive ⁠for holders of other currencies.
The US 10-year Treasury yields climbed to a one-month high, raising the cost of holding non-yielding gold.
"Gold is on the back foot today despite the market tumult, with triple-digit oil prices boosting the dollar on inflation fears and scaled back rate-cutting expectations," said Tim Waterer, KCM Trade chief market ⁠analyst.
Crude oil prices surged more than 15% to ‌above $110 per barrel, as the widening ‌US-Israeli war with Iran prompted some major Middle Eastern oil producers to ‌cut supplies amid fears of prolonged disruption to shipments through ‌the Strait of Hormuz.
"Much of gold's price rise over the last 12 months was predicated on a dovish outlook for US interest rates, but given the inflation risk presented by $100 per barrel oil, rate cuts are ‌no longer a given and gold has repriced accordingly," Waterer said.
Investors expect the US Federal Reserve ⁠to hold ⁠rates steady at the end of its two-day meeting on March 18, per CME Group's FedWatch tool. The odds of a June hold, which were below 43% last week - when the war began, climbed to more than 51%.
Non-yielding bullion tends to thrive in a low-interest-rate environment.
Meanwhile, Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader, signaling that hardliners remain firmly in charge and further escalating tensions in the region.
Spot silver fell 1.3% to $84.42 per ounce, after losing over 5% earlier in the session. Spot platinum lost 1.3% to $2,108.05 and palladium fell 2.4% to $1,586.75.