Iran's Oldest Tire Factory Shuts Down

Michelin Formula One tires are prepared for racing in the pits at the Indianapolis Motor Speedway, June 29, 2006. REUTERS/John Gress/File Photo
Michelin Formula One tires are prepared for racing in the pits at the Indianapolis Motor Speedway, June 29, 2006. REUTERS/John Gress/File Photo
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Iran's Oldest Tire Factory Shuts Down

Michelin Formula One tires are prepared for racing in the pits at the Indianapolis Motor Speedway, June 29, 2006. REUTERS/John Gress/File Photo
Michelin Formula One tires are prepared for racing in the pits at the Indianapolis Motor Speedway, June 29, 2006. REUTERS/John Gress/File Photo

Iran's oldest tire factory has shut down due to "financial problems", state news agency IRNA reported Wednesday.

Kian Tire was once the "largest producer of off-road tires in Iran" but closed its doors several days ago due to "financial problems and difficulties in the supply of raw materials", AFP quoted IRNA as saying.

Founded in 1958 as a joint American-Iranian enterprise according to its website, the company was known for making tires for "military vehicles and large trucks", IRNA said.

But due to outstanding bank debts, Kian Tire was expropriated and had been run by the state for the past few years, the agency added.

Iran's economy has suffered under stringent sanctions that were reimposed by the United States after it unilaterally pulled out of a nuclear deal between Tehran and world powers in 2018.

Kian Tire workers had gathered Sunday to urge the state to save the factory, local media said.

More than 1,200 employees are now out of work, according to IRNA.



Oil Rises as Investors Weigh Market Outlook, Tariffs, Sanctions

A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
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Oil Rises as Investors Weigh Market Outlook, Tariffs, Sanctions

A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk
A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk

Oil prices rose by around 1% on Friday as investors weighed a tight prompt market against a potential large surplus this year forecast by the IEA, while US tariffs and possible further sanctions on Russia were also in focus.

Brent crude futures were up 76 cents, or 1.11%, at $69.40 a barrel as of 1153 GMT US West Texas Intermediate crude ticked up 82 cents, or 1.23%, to $67.39 a barrel.

At those levels, Brent was headed for a 1.6% gain on the week, while WTI was up around 0.6% from last week's close.

The IEA said on Friday the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation, Reuters reported.

Front-month September Brent contracts were trading at a $1.11 premium to October futures at 1153 GMT.

"Civilians, be they in the air or on the road, are showing a healthy willingness to travel," PVM analyst John Evans said in a note on Friday.

Prompt tightness notwithstanding, the IEA boosted its forecast for supply growth this year, while trimming its outlook for growth in demand, implying a market in surplus.

"OPEC+ will quickly and significantly turn up the oil tap. There is a threat of significant oversupply. In the short term, however, oil prices remain supported," Commerzbank analysts said in a note.

Further adding support to the short-term outlook, Russian deputy prime minister Alexander Novak said on Friday that Russia will compensate for overproduction against its OPEC+ quota this year in August-September.

"Prices have recouped some of this decline after President Trump said he plans to make a 'major' statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia," ING analysts wrote in a client note.

Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia's intensifying bombardment of Ukrainian cities.

The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package, but Russia said it has "good experience" of tackling and minimising such challenges.