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Iraq, Algeria, Oman, Kuwait and Bahrain Affirm Support for OPEC+ Production Cut

Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
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Iraq, Algeria, Oman, Kuwait and Bahrain Affirm Support for OPEC+ Production Cut

Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)
Assurances from OPEC members on the importance of reducing production refute US allegations (Reuters)

OPEC+ member states lined up on Sunday to endorse the production cut agreed this month after the US had accused Riyadh of coercing some other nations into supporting the move.

Algeria's Energy Minister Mohamed Arkab called the decision “historic” and expressed his full confidence in it, Algeria's Ennahar TV reported.

“There is complete consensus among OPEC+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the guidance needed for the future,” Iraq's state oil marketer SOMO said in a statement.

Iraq is OPEC’s second largest oil producer.

SOMO’s statement explained that “there is a close link between the demand for oil and the growth of the global economy, as one is greatly affected by the other.”

The International Monetary Fund (IMF) had indicated that the global economy is on the verge of recession at a very large rate.

“If a global recession takes place, it will reduce the demand for crude oil,” SOMO explained, adding that the oil production cut decision by OPEC+ was necessary to achieve market balance considering the deteriorating situation.

Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al-Sabah also welcomed the decision by OPEC+ and said the body was keen to maintain a balanced oil market, state news agency KUNA reported.

Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.

Oman’s Energy Ministry said that the decision to cut oil production by 2 million barrels per day was necessary to reassure the market and stabilize it.

The ministry said that OPEC+ decisions are based on purely economic considerations and realities of supply and demand in the market.

The Organization of Arab Petroleum Exporting Countries (OAPEC) said on Saturday that the decision of OPEC+ to cut its oil production target was exact and was taken at the right time.

OAPEC comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, Tunisia and the UAE.

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Japan Seeks Record $55.6 bln Defense Budget, with AI Focus, Says Ministry

This photo shows an exterior view of the Defense Ministry of Japan with its sign at the main entrance in Tokyo on Sept. 17, 2021. (AP Photo/Hiro Komae, File)
This photo shows an exterior view of the Defense Ministry of Japan with its sign at the main entrance in Tokyo on Sept. 17, 2021. (AP Photo/Hiro Komae, File)
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Japan Seeks Record $55.6 bln Defense Budget, with AI Focus, Says Ministry

This photo shows an exterior view of the Defense Ministry of Japan with its sign at the main entrance in Tokyo on Sept. 17, 2021. (AP Photo/Hiro Komae, File)
This photo shows an exterior view of the Defense Ministry of Japan with its sign at the main entrance in Tokyo on Sept. 17, 2021. (AP Photo/Hiro Komae, File)

Japan's defense ministry requested a record budget of 8.9 trillion yen ($55.6 billion) on Monday as Tokyo looks to artificial intelligence to speed up decision-making in the face of a tense security environment.

But the final budget reportedly could reach 10 trillion yen as Tokyo undergoes a sweeping upgrade of its defense in order to navigate growing tension with neighbors such as China, North Korea and Russia.

Business

Turkish Economy Grows Less-Than-Forecast 2.3% in Q2 as Domestic Demand Shrinks

24 August 2026, Türkiye, Istanbul: Pigeons take flight at sunset as people sit along the waterfront in Istanbul. (dpa)
24 August 2026, Türkiye, Istanbul: Pigeons take flight at sunset as people sit along the waterfront in Istanbul. (dpa)
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Turkish Economy Grows Less-Than-Forecast 2.3% in Q2 as Domestic Demand Shrinks

24 August 2026, Türkiye, Istanbul: Pigeons take flight at sunset as people sit along the waterfront in Istanbul. (dpa)
24 August 2026, Türkiye, Istanbul: Pigeons take flight at sunset as people sit along the waterfront in Istanbul. (dpa)

Türkiye’s economy expanded 2.3% year-on-year in the second quarter, data showed on Monday, below forecasts as domestic demand shrank amid tight monetary policy and the Iran war impact. 

In a Reuters poll, economic growth was estimated to have risen by 2.9% in the second quarter and was forecast to expand by ‌3.05% in 2026. ‌It was the fourth consecutive quarter of slower ‌growth. 

Treasury ⁠and Finance Minister ⁠Mehmet Simsek said that growth would rise after the "balanced" second-quarter growth. 

"Thanks to progress in the disinflation process and more supportive global conditions, we expect growth to gradually increase in the coming period," Simsek said in a statement after the data. 

Second-quarter gross domestic product grew 1.1% from the previous quarter on a seasonally and calendar-adjusted basis, the Turkish ⁠Statistical Institute data showed. 

The strongest growth by ‌activity was shown by agriculture, forestry ‌and fishing, which expanded 13.3%, while information and communication grew 8.6%, the data ‌showed. 

Haluk Burumcekci from Burumcekci Research and Consultancy said there was ‌an "increasingly evident loss of momentum in domestic demand", adding that the "positive contribution from net external demand after six quarters suggests that the first signs of the 'rebalancing among demand components,' one of the key objectives of the economic ‌program, have begun to emerge". 

External demand contributed 0.6 percentage points to second quarter growth, while domestic ⁠demand shrank ⁠1.3% quarter-on-quarter, economists said, noting that this was a disinflationary development. 

Turkish annual consumer price inflation stood at 31.75% in July, underscoring the challenges for the central bank, which has held rates at 37% in the last four policy meetings as it monitors Iran war fallout. 

While tight monetary and fiscal policies implemented to balance domestic demand and combat high inflation put pressure on economic growth, the economy grew by 2.6% in the first quarter, according to revised figures. 

Growth in 2025 was revised to 3.7% from 3.6%. 

The government's current medium-term program projected growth of 3.8% in 2026. A new medium-term program will be announced on September 7. 

Business

Crude Prices Rise on US-Iran Strikes, Equities Mixed After Warsh Remarks

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. (Reuters)
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. (Reuters)
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Crude Prices Rise on US-Iran Strikes, Equities Mixed After Warsh Remarks

Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. (Reuters)
Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. (Reuters)

Oil prices spiked more than two percent Monday after a fresh flare-up in the US-Iran war, while stocks were mixed as hawkish comments from Federal Reserve boss Kevin Warsh saw investors ramp up bets on a US interest rate hike.

With inflation remaining stubbornly high -- largely on the back of elevated energy costs -- the US central bank has come under pressure to act, while Warsh's refusal to provide guidance has stoked uncertainty.

But in a highly anticipated speech at the Jackson Hole symposium of central bankers and economists in Wyoming, he left traders with few doubts that he was ready to increase borrowing costs.

Warsh said: "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do."

He called the spike in inflation -- currently at 3.7 percent and nearly double the Fed's two-percent target -- "concerning", and said he would be "hard-pressed" to describe current financial conditions as "restrictive", a potential hint that rate hikes could be on the horizon.

However, he stopped short of saying he would support a hike, adding: "I stand here today committed to a discipline, not to a decision."

All three main indexes on Wall Street fell Friday. Yields on short-term US Treasury bonds -- which reflect monetary policy expectations -- jumped, and the dollar rallied against its peers. Gold, which benefits from lower interest rates, fell.

Asia struggled in the morning but some markets rallied as the day progressed, leaving some in positive territory and others just below Friday's close.

Tokyo, Hong Kong, Sydney, Taipei, Jakarta and Mumbai ended down but Seoul, Shanghai, Singapore, Bangkok and Wellington rose.

Paris rose but Frankfurt dipped.

London was closed for a holiday.

Focus will now turn to a string of crucial data releases over the next two weeks before the Fed makes its decision, with jobs up this week and the consumer price index next week.

"Should we get an inline payrolls print that does not give the Fed too much to work with, next week's core CPI report will become the major decider for the market's Fed belief system," wrote Chris Weston at Pepperstone.

"The volatility priced around that outcome across rates, forex and equities could therefore be significant."

Still, Invesco's David Chao added: "While Jackson Hole has increased the possibility of a rate hike, I don't think a September rate hike is in the books.

"Chair Warsh wants to reduce forward guidance and he stopped short of explicitly signaling a September move. The upcoming inflation and labor market reports will be critically important."

The Fed's battle against inflation has been hobbled by the Iran war, which has pushed oil prices higher.

And after a run lower for most of last week, they spiked again Monday, a day after the United States said it had attacked Iranian rocket launchers on a small island in the Strait of Hormuz, its first strikes on the country in a month.

The attack prompted Tehran to retaliate by firing at Jordan. Both main crude contracts rose more than two percent Monday.

The exchange came shortly after the US-Iran war hit the six-month mark, and at a time when hostilities had been subsiding.

The news revived concerns about the conflict, with attempts and peace talks appearing to be going nowhere and the strait -- through which a fifth of global crude and gas passes -- largely closed.

US officials this month vowed the "economic asphyxiation" of Iran to make it open the waterway.

"Hormuz is once again threatening to put a floor under oil just as Warsh is putting a ceiling on how much inflation patience markets should assume from the Fed," said Quintex Intel's Stephen Innes.

"For oil traders, (the) move is another reminder of how quickly the geopolitical premium can return.

"Physical flows through Hormuz have improved materially from their worst levels, which is precisely why crude had started giving back some of the fear premium, but the latest exchange shows how fragile that progress remains and how quickly the shipping story can be pushed back onto the trading desk."