Jerusalem’s Light Rail Project Sparks Controversy

Pedestrians walk as a light rail tram passes by in Jerusalem November 11, 2014. (Reuters)
Pedestrians walk as a light rail tram passes by in Jerusalem November 11, 2014. (Reuters)
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Jerusalem’s Light Rail Project Sparks Controversy

Pedestrians walk as a light rail tram passes by in Jerusalem November 11, 2014. (Reuters)
Pedestrians walk as a light rail tram passes by in Jerusalem November 11, 2014. (Reuters)

The Palestinian Authority (PA) asked the government of Spain to prevent a Spanish company from participating in constructing infrastructure on occupied territories.

Construcciones y Auxiliar de Ferrocarriles (CAF) won a tender earlier this year to build a part of the Jerusalem tram project.

Sources at the Spanish international news agency, EFE, revealed that the PA vocally expressed its disapproval of the manufacturer taking part in the project, which will cut deep into occupied territory.

The tram is set to connect Israeli settlements in east Jerusalem to occupied territories in the West Bank.

In Jerusalem, where Israel has been occupying the eastern part since 1967, there is an already operational tram line in service since 2011, and which has already sparked controversy for linking Jewish settlements in East Jerusalem with West Jerusalem.

The new project will include the construction of 114 new trams and the rehabilitation of 46 units that are currently operational.

However, Palestinians are urging the Spanish company to withdraw from the project because of its impact on the occupied territories and warned that the continuation of this work may violate international law.

“Any attempt by any company to do business in the occupied territories would be violating international law,” former PA foreign minister Nasser al-Qudwa had said.

He clarified that if CAF does not rollback its participation it will be faced with multiple lawsuits.



Oil Edges Down amid Bearish Trump Tariff Outlook

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
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Oil Edges Down amid Bearish Trump Tariff Outlook

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo

Oil prices declined moderately on Thursday as investors weighed the potential impact of US President Donald Trump's tariffs on global economic growth.

Brent crude futures were down 23 cents, or 0.3%, at $69.96 a barrel by 0904 GMT. US West Texas Intermediate crude fell 32 cents, or 0.5%, to $68.06 a barrel.

On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the US, after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva.

He has also announced plans for tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters issued earlier in the week including for powerhouse US suppliers South Korea and Japan.

Trump's history of backpedaling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group.

"People are largely in wait and see mode, given the erratic nature of policy making and the flexibility the administration is showing around tariffs," Tchilinguirian said.

Policymakers remain worried about the inflationary pressures from Trump's tariffs, with only "a couple" of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed.

Higher interest rates make borrowing more expensive and reduce demand for oil, Reuters said.

Supporting oil prices however was a weaker US dollar in Thursday's Asia trading session, said OANDA senior analyst Kelvin Wong. A weaker dollar lifts oil prices by making it cheaper for holders of other currencies.

US crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said.

Global daily flights were averaging 107,600 in the first eight days of July, an all-time high, with flights in China reaching a five-month peak and port and freight activities indicating "sustained expansion" in trade activities from last year, JP Morgan said in a client note.

"Year to date, global oil demand growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said.

Additionally, there is doubt the recent increase in production quotas announced by OPEC+ will result in an actual increase in production, as some members are already exceeding their quotas, said Tony Sycamore, an analyst at IG.

"And others, like Russia, are unable to meet their targets due to damaged oil infrastructure," he said.

OPEC+ oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members, and the United Arab Emirates' move to a larger quota.