Guterres in Senegal: ‘Triple Crisis’ in Africa Aggravated by War in Ukraine

UN Secretary-General Antonio Guterres and Senegal's President Macky Sall at a press conference in Dakar. AFP
UN Secretary-General Antonio Guterres and Senegal's President Macky Sall at a press conference in Dakar. AFP
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Guterres in Senegal: ‘Triple Crisis’ in Africa Aggravated by War in Ukraine

UN Secretary-General Antonio Guterres and Senegal's President Macky Sall at a press conference in Dakar. AFP
UN Secretary-General Antonio Guterres and Senegal's President Macky Sall at a press conference in Dakar. AFP

The war in Ukraine is aggravating a “triple food, energy and financial crisis,” across Africa, according to UN Secretary-General Antonio Guterres.

Speaking in Dakar, the capital of Senegal, on his first visit to Africa since the beginning of the COVID-19 pandemic, Guterres said, “when discussing the socio-economic situation, it is impossible not to mention the war in Ukraine and its impact on Africa.”

The UN chief made the remarks after meeting the country’s President Macky Sall, who said that the war in Ukraine was “a human tragedy” which can have “a dramatic impact on economies, in particular, those of developing countries.”

Before the Russian invasion began in February, the combination of climate change, conflict and the pandemic, was already impacting the socio-economic situation in Africa, especially in the Sahel region which includes Senegal.

Earlier Guterres and Sall toured a new hi-tech vaccine production facility, currently being built by the Institut Pasteur in Dakar. When completed, it will be able to produce a range of vaccines including Pfizer-BioNTech, one of the most widely used immunizations against COVID-19. It will also be able to manufacture experimental vaccines against malaria and tuberculosis.

Guterres said that it was necessary to “build true vaccine equity across the world,” and that it was “unacceptable” that close to 80 percent of Africans are not vaccinated against COVID-19; a situation which he called a “moral failure.”

Sall has called for pharmaceutical sovereignty by supporting the emergence of an African pharmaceutical industry capable of meeting basic needs and coping with pandemics.

As part of the COVID-19 recovery plan, Senegal is strengthening its drugs manufacturing sector. It’s expected that the vaccination facility will produce at least 50 percent of the country’s needs.

Guterres added that the world’s “wealthiest countries and pharmaceutical companies should accelerate the donation of vaccines and invest in local production” of the type seen at Institut Pasteur facility.

Increased investment is part of a global strategy to support developing countries facing what the UN has called “cascading crises.” In March 2022, the UN chief established the Global Crisis Response Group on Food, Energy and Finance (GCRG) set up in response to the crisis provoked by Russia’s invasion of Ukraine, saying that the invasion was producing alarming effects on a world economy already battered by COVID-19 and climate change.

Sall is one of six eminent world leaders who have been named as Champions of the group and who are supporting the Secretary-General’s call for immediate action to prevent, mitigate and respond to the crisis. He is also the Chairperson of the African Union for 2022.

Talking to reporters in Dakar, Guterres said, “we must ensure a steady flow of food and energy in open markets, removing all unnecessary export restrictions,” adding that “countries must resist the temptation to hoard and instead release strategic stocks of energy.”

The UN estimates that a quarter of a billion people could be pushed into extreme poverty this year, caused by the consequences of the conflict in Ukraine. International financial institutions have a key role to play and “must urgently provide debt relief by increasing liquidity and fiscal space,” the UN chief said, “so that governments can avoid default and invest in social safety nets and sustainable development for their people.”



Maersk Suspends Strait of Hormuz Transit

Maersk Suspends Strait of Hormuz Transit
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Maersk Suspends Strait of Hormuz Transit

Maersk Suspends Strait of Hormuz Transit

Container shipping company Maersk said it was halting passage through the Suez Canal and the Strait of Hormuz for "safety" reasons.

The Danish group was the latest of several shipping groups to make similar announcements after Iran's Revolutionary Guards declared the strait closed on Saturday.

Iran and Iranian-backed groups fired missiles at Israel and Arab states, and Israel and the United States pounded targets in Iran as the war expanded Monday.

The attacks were the second combined strikes in eight months from the US and Israel against Iran. In the 12-day war last June, Israeli and American strikes greatly weakened Iran’s air defenses, military leadership and nuclear program.


Oil Surges, Stocks Slide as Conflict Grips Middle East

FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo
FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo
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Oil Surges, Stocks Slide as Conflict Grips Middle East

FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo
FILE PHOTO: Oil tankers pass through the Strait of Hormuz, December 21, 2018. REUTERS/Hamad I Mohammed/File Photo

Oil prices surged on Monday and shares slid as military conflict in the Middle East looked set to last weeks, threatening to upend a global economic recovery and perhaps reignite inflation.

Brent jumped 6.4% to $77.57 a barrel, though it had briefly topped $82.00 at one stage, while US crude climbed 6.2% to $71.17 per barrel. Safe-haven gold rose 1.6% to $5,360 an ounce.

Military strikes by the United States and Israel on Iran showed no sign of lessening, while Iran responded with missile barrages across the region, risking dragging its neighbors into the conflict, reported Reuters.

President Donald Trump suggested to the Daily Mail the conflict could last for four more weeks, while posting that attacks would continue until US objectives were met.

All eyes were on the Strait of Hormuz where around a fifth of the world's seaborne oil trade flows and 20% of its ‌liquefied natural gas. While ‌the vital waterway has not yet been blocked, marine tracking sites showed tankers piling ‌up ⁠on either side ⁠of the strait wary of attack or maybe unable to get insurance for the voyage.

"The most immediate and tangible development affecting oil markets is the effective halt of traffic through the Strait of Hormuz, preventing 15 million barrels per day (bpd) of crude oil from reaching markets," said Jorge Leon, head of geopolitical analysis at Rystad Energy.

"Unless de-escalation signals emerge swiftly, we expect a significant upward repricing of oil."

A prolonged spike in oil prices would risk reigniting inflationary pressures globally, while also acting as a tax on business and consumers that could dampen demand.

OPEC+ did agree a modest oil output boost of 206,000 barrels per day for April on Sunday, ⁠but a lot of that product still has to get out of the Middle ‌East by tanker.

"The nearest historical analogue in our view is the Middle East ‌oil embargo of the 1970s, which increased oil prices by 300% to around $12/bbl in 1974," said Alan Gelder, SVP of refining, chemicals ‌and oil markets at Wood Mackenzie.

"That is only US$90/bbl in 2026 terms. Eclipsing this in today's market concerned about ‌significant losses of supply seems very achievable."

That would be expensive for Japan, which imports all its oil, sending the Nikkei down 1.3%, with airlines among the hardest hit.

Chinese blue-chips were off just 0.1%, though the country does get much of its seaborne oil imports from the Middle East. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%.

AND IT'S A BIG US DATA WEEK

In the Middle East, the ‌UAE and Kuwait temporarily closed their stock markets citing "exceptional circumstances".

For Europe, EUROSTOXX 50 futures shed 1.3% and DAX futures slid 1.4%. FTSE futures fell 0.6%.

On Wall Street, S&P 500 ⁠futures and Nasdaq futures both ⁠lost 0.8%.

The oil shock rippled through currency markets with the dollar a main beneficiary. The US is a net energy exporter and Treasuries are still considered a liquid haven in times of stress, shoving the euro down 0.2% to $1.1787.

While the Japanese yen is often a safe harbor, the country imports all of its oil making the flows more two-way. The dollar added 0.3% to 156.44 yen. 

In bond markets, 10-year Treasury yields steadied at 3.970%, having briefly touched an 11-month low of 3.926%. 

Bonds had gained a bid on Friday when UK mortgage lender MFS was placed into administration following allegations of financial irregularities. Its collapse stoked wider credit fears, with well-known big banks among its lenders. MFS had borrowed 2 billion pounds ($2.69 billion). 

The news slugged banking stocks and combined with jitters over AI-related stocks to hit Wall Street more broadly. 

Investors also have to weather a squall of US economic data this week, including the ISM survey of manufacturing, retail sales and the always vital payrolls report. 

Any weakness could shake confidence in the economy after a disappointing fourth quarter, but would also likely narrow the odds on rate cuts from the Federal Reserve. 

Markets currently imply a 50% chance of an easing in June and about 58 basis points of cuts this year. 


Barclays Says Brent Crude Oil Could Reach $100 a Barrel

FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Barclays Says Brent Crude Oil Could Reach $100 a Barrel

FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Barclays boosted its Brent crude oil futures price forecast to around $100 per barrel on Saturday, up from $80 on Friday, after the United States and Israel bombed several sites in Iran.

"Oil markets might have to face their worst fears on Monday. As things stand right now, we think Brent could hit $100 (per barrel), as the market grapples with the threat of a ⁠potential supply disruption amid ⁠a spiraling security situation in the Middle East," the bank said in a report.

The United States and Israel attacked Iran on Saturday, targeting its top leaders and calling for the overthrow ⁠of its government, while Iran responded with missiles fired at Israel and neighboring Gulf countries.

Oil prices rose about 2% on Friday, with traders bracing for supply disruptions as nuclear talks between the US and Iran had yet to reach an agreement.

Brent settled at $72.48 a barrel.

About a fifth of the oil consumed globally passes through the Strait of ⁠Hormuz between ⁠Oman and Iran, making any disruptions in the area a major risk to global oil supplies.