Oil Set for First Weekly Decline in Seven Weeks ahead of US-Iran Talkshttps://english.aawsat.com/business/5237810-oil-set-first-weekly-decline-seven-weeks-ahead-us-iran-talks
Oil Set for First Weekly Decline in Seven Weeks ahead of US-Iran Talks
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
US crude futures rose slightly on Friday but were on track for their first weekly drop in seven weeks as supply concerns eased, and investors focused on the outcome of US-Iran nuclear talks in Oman later in the day.
Brent crude futures rose 25 cents, or 0.4%, to $67.80 a barrel at 0353 GMT, while the US West Texas Intermediate crude was also up 25 cents, or 0.4%, at $63.54 a barrel.
The benchmarks are down more than 3% from near six-month highs reached in late January when US President Donald Trump threatened to strike Iran, with the two sides set to hold talks in Oman on Friday.
However, Tehran and Washington have not agreed on the agenda for the meeting. Iran wants to discuss only nuclear issues, while the US is pressing to include Iran's ballistic missiles, support for armed groups around the region and the treatment of its people.
"The two sides remain well apart, leaving tensions elevated. This should see the geopolitical risk premium remain in place," Daniel Hynes, an analyst at ANZ, said in a note on Friday.
Any escalation of tensions between the US and Iran could disrupt oil flows, as about a fifth of the world's total oil consumption passes through the Strait of Hormuz between Oman and Iran.
Saudi Arabia, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, as does their fellow OPEC member Iran.
If the US-Iran talks ease the prospect of conflict in the region, oil prices could decline further.
"We think that geopolitical fears will give way to weak fundamentals," Capital Economics analysts said in a note, pointing to a recovery in Kazakhstan's oil output which will help push oil prices lower, towards $50 per barrel by end-2026.
Saudi Arabia's Trade Surplus Exceeds SAR90 Billion in Q1 2026https://english.aawsat.com/business/5289802-saudi-arabias-trade-surplus-exceeds-sar90-billion-q1-2026
Saudi Arabia's Trade Surplus Exceeds SAR90 Billion in Q1 2026
The Jeddah Islamic Port (SPA)
Saudi Arabia recorded a trade surplus of SAR90.5 billion during the first quarter (Q1) of 2026, marking a year-on-year increase of 43.7%. The surplus increased by more than SAR27 billion compared with the same period in 2025, when it stood at approximately SAR63 billion, according to the General Authority for Statistics' International Trade Bulletin for March, SPA reported .
The data showed that the trade surplus increased by 60% on a quarterly basis. It rose by more than SAR33.9 billion compared with the fourth quarter of 2025, when the surplus totaled approximately SAR56.5 billion. On a monthly basis, the trade surplus continued to grow in March 2026. It increased by 200.9%, rising by more than SAR38 billion compared with February, when the surplus stood at approximately SAR19.1 billion.
According to the data, Saudi Arabia's total international trade exceeded SAR535 billion during Q1 2026, achieving year-on-year growth of 4.5%. This represents an increase of approximately SAR22.9 billion compared with the same period last year, when total trade reached SAR512.3 billion. Total merchandise exports in Q1 2026 reached approximately SAR312.8 billion, compared with imports of approximately SAR222.3 billion. National exports, including oil and non-oil exports, totaled SAR274.5 billion.
The data also showed that the value of re-exports exceeded SAR38 billion during the first quarter, achieving year-on-year growth of 32.9%. This represents an increase of more than SAR9 billion compared with the corresponding period last year, when re-exports totaled around SAR28.8 billion.
Among trading partners, Asian countries ranked first among importers of Saudi exports, with a value exceeding SAR229.2 billion. They were followed by European countries with more than SAR47 billion, African countries with SAR22.5 billion, and countries in the Americas with approximately SAR12.6 billion. China remained the largest importer of Saudi exports during the first quarter, with imports valued at SAR44.8 billion.
Japanese Ambassador to Asharq Al-Awsat: Riyadh, Tokyo in Consultations to Strengthen Energy Supply Chainshttps://english.aawsat.com/business/5289625-japanese-ambassador-asharq-al-awsat-riyadh-tokyo-consultations-strengthen-energy
Japanese Ambassador to Asharq Al-Awsat: Riyadh, Tokyo in Consultations to Strengthen Energy Supply Chains
Saudi-Japanese ministerial roundtable meeting held in January last year (File photo: X)
As international trade faces mounting disruptions, Japan's Ambassador to Saudi Arabia, Yasunari Morino, revealed that Riyadh and Tokyo are engaged in intensive consultations aimed at strengthening the resilience of energy and critical materials supply chains against current regional tensions. He stressed that energy security is no longer merely a conventional issue, but has become a strategic priority requiring greater cooperation and closer coordination.
In an exclusive interview with Asharq Al-Awsat, Morino said Japan highly appreciates Saudi Arabia's leading role in promoting de-escalation across the region and advancing diplomatic solutions to conflicts, as well as its pivotal role in ensuring the stability of the global oil market. He reaffirmed Tokyo's commitment to expanding bilateral ties across various sectors, moving beyond the traditional scope of oil trade and petrochemicals toward broader opportunities in technology and investment.
The Saudi-Japanese Business Council held a meeting in Riyadh several days ago at the Federation of Saudi Chambers to discuss ways to enhance business cooperation between the two countries and review the current business environment.
Morino said the long-standing economic relationship between Saudi Arabia and Japan is a source of shared pride, noting that Saudi crude oil supplies are critically important to Japan, while Japanese investments in the Kingdom's petrochemical sector are substantial.
"As Saudi Arabia embarks on ambitious structural reforms to diversify its economy, Japan is exploring new opportunities to expand our economic relationship in line with the Japan-Saudi Vision 2030 launched in 2017, which complements Saudi Vision 2030," he said.
The ambassador added that bilateral cooperation holds significant promise in advanced technologies, including artificial intelligence, healthcare, entertainment, sports, and food. He noted that the strategic importance of the relationship was further strengthened after the two governments agreed in February to establish the Strategic Partnership Council, co-chaired by Saudi Crown Prince and Prime Minister Prince Mohammed bin Salman and the Prime Minister of Japan.
He also expressed Japan's strong interest in contributing to the success of Riyadh Expo 2030, particularly as Japan handed over the hosting torch of the global event to the Kingdom.
Japanese Ambassador to Saudi Arabia Yasunari Morino (Embassy)
Trade by the Data
Morino highlighted official data reflecting the depth of trade ties between the two countries.
Trade in December 2025: Saudi exports to Japan reached SAR22.7 billion ($6 billion), accounting for 11.7 percent of the Kingdom's total exports that month. The exports were mainly mineral fuels and organic chemicals. Saudi imports from Japan totaled SAR3.6 billion ($960 million), representing 4.3 percent of total imports, led by vehicles and parts, followed by machinery and mechanical equipment.
Full-year 2025 exports: Saudi exports to Japan totaled SAR133.3 billion ($35.5 billion), led by mineral fuels and oils worth SAR129.8 billion ($34.6 billion), followed by organic chemicals valued at SAR1.2 billion ($320 million), and copper and copper products worth SAR936.1 million ($249.6 million).
Annual imports from Japan: Saudi Arabia imported goods worth SAR38.2 billion ($10.1 billion) from Japan in 2025. Vehicles and parts ranked first at SAR26.6 billion ($7 billion), followed by boilers, machinery, and mechanical equipment at SAR3.9 billion ($1 billion), and electrical equipment at SAR1.8 billion.
Japanese Ambassador to Saudi Arabia Yasunari Morino addresses the Saudi-Japanese Business Council meeting last Monday (Japanese Embassy in Riyadh)
Non-oil exports and foreign direct investment
On the growth of non-oil trade, Morino said Saudi non-oil exports to Japan reached SAR47.7 million ($12.7 million) in April 2026. The main exports included base metals and articles thereof worth SAR35.4 million ($9.4 million), plastics and rubber worth SAR5.8 million ($1.5 million), and chemical products worth SAR4.4 million ($1.1 million).
On investment, Morino said Japan's foreign direct investment stock in Saudi Arabia declined slightly to SAR23.1 billion ($6.1 billion) at the end of 2024, compared with SAR23.6 billion ($6.2 billion) in 2023. He said joint investments are expected to expand in the future, supported by new initiatives and agreements between the two countries.
Lebanon Under Pressure to Dismantle the Parallel Economy and Exit the FATF Grey Listhttps://english.aawsat.com/business/5289556-lebanon-under-pressure-dismantle-parallel-economy-and-exit-fatf-grey-list
Lebanon Under Pressure to Dismantle the Parallel Economy and Exit the FATF Grey List
A Cabinet session chaired by President General Joseph Aoun at Baabda Palace (Lebanese Presidency).
The decision by the Financial Action Task Force (FATF) to keep Lebanon on its "grey list" of jurisdictions with strategic deficiencies in combating money laundering and terrorist financing has not triggered any new repercussions for cross-border financial transactions. Rather, it has served as a warning to the government's executive and monetary authorities that the grace period is nearing its end for completing the legal and procedural measures needed to dismantle the "parallel economy" and curb illicit cash flows operating outside the formal financial sector.
While the devastating consequences of the recent war on the humanitarian, reconstruction and economic fronts have provided mitigating grounds, according to a senior financial official, to explain the slow pace of reforms required from the relevant authorities, particularly administrative, judicial and security bodies, they do not diminish the risks associated with prolonging Lebanon's sovereign stay in an environment of growing suspicion generated by the parallel economy and the continued exploitation of the financial system's persistent fragility.
Intertwined Tracks
The financial official, who spoke to Asharq Al-Awsat, said it is no secret that the political and economic tracks have become deeply intertwined, to the point of running in parallel and perhaps advancing simultaneously. The objectives of establishing the state's exclusive control over arms and restoring the legitimacy of financial and commercial activities now go hand in hand, requiring the authorities to make an explicit commitment to international requirements and conditions that would secure external support to end the war as a first priority and launch the recovery process through the International Monetary Fund, paving the way for Lebanon's safe exit from the catastrophic deterioration of most of its sovereign and financial ratings.
International pressure, from both governments and institutions, continues to emphasize the need to curb illicit financial channels, including designated non-financial businesses and professions as well as certain non-bank financial institutions, particularly those linked to Hezbollah. Foremost among them is Al-Qard Al-Hassan Association, along with similar activities targeted by the international community and international financial institutions.
One of Al-Qard Al-Hasan institution's buildings in Beirut's southern suburbs (file photo- AP)
Positive Assessment of the Legitimate Financial Sector
Despite Lebanon's continued placement on the grey list, the country's legitimate financial sector continues to receive a positive assessment based on an integrated legal and administrative framework that complies with the strictest international standards. Particular recognition has been given to the central bank's measures aimed at rigorously verifying the sources and destinations of funds, restricting cash and electronic payments, financial transactions and transfers to banks and licensed financial companies, and strengthening the judiciary's central role in combating all forms of financial crime.
According to statements by Banque du Liban Governor Karim Souaid, removing Lebanon from the grey list is a top priority because the country cannot play a credible role in the global financial system unless it achieves that objective. He noted that remaining on the list affects not only Lebanon's reputation but also restricts correspondent banking relationships and increases the cost of financial transactions.
Accordingly, the governor stressed that "no honest account of this crisis can ignore the parallel economy, including illicit financial flows, money laundering operations and corrupt practices that have infiltrated and weakened Lebanon's financial system." He also reaffirmed the central bank's firm and non-negotiable commitment to the principles of disclosure, transparency and accountability.
Banque du Liban has already implemented a broad package of measures in line with this approach. These include engaging specialized firms to combat the "parallel economy," deploying advanced financial monitoring tools, strengthening Know Your Customer (KYC) requirements, enhancing due diligence procedures, enforcing beneficial ownership transparency requirements, significantly improving the quality of suspicious transaction reports, and strengthening cooperation with relevant regional and international financial bodies.
People walk outside Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir
Forensic Audit
In coordination with the Ministries of Finance and Justice, the central bank has also launched a forensic audit conducted by Alvarez & Marsal. The firm's mandate extends well beyond reviewing the funds disbursed by the central bank at the request of previous governments to finance the subsidy program. It covers all payments made up to the end of 2023, funds transferred to commercial banks through international transfers, and payments made by the central bank on behalf of the state.
The governor also affirmed that the central bank is cooperating with Lebanese judicial authorities by providing all information and financial analyses permitted by law in support of judicial proceedings. It is likewise cooperating with judicial authorities in Switzerland, France, Germany, Liechtenstein, Luxembourg, the United Kingdom and other countries where legal proceedings involving illicitly transferred Lebanese funds are underway.
Lebanese President General Joseph Aoun meets with the Governor of the Central Bank of Lebanon in Baabda (X)
Lebanon's Commitments
Under the latest FATF assessment issued at the end of last week, Lebanon has committed at the highest political level to work with the organization to strengthen the effectiveness of its anti-money laundering and counter-terrorist financing framework, despite the country's difficult social, economic and security challenges. This requires continued coordination in implementing the agreed action plan to address the identified strategic deficiencies.
The action plan comprises ten key points identified in the Mutual Evaluation Report. The foremost priority is conducting targeted assessments of money laundering and terrorist financing risks and ensuring that the necessary policies and mitigation measures are in place. It also calls for strengthening mechanisms that ensure the effective and timely execution of requests for mutual legal assistance, extradition and asset recovery.
Without ranking them by importance, the authorities are also required to strengthen designated non-financial businesses' and professions' understanding of money laundering and terrorist financing risks and to impose effective, proportionate and dissuasive sanctions for violations of AML/CFT obligations. They must also ensure that beneficial ownership information is continuously updated and that adequate sanctions and appropriate measures are in place to mitigate risks associated with legal persons, particularly companies and other legal entities.
In the same context, the authorities are expected to make greater use of financial intelligence, reports and analytical products produced by the Special Investigation Commission (SIC), while demonstrating a sustained increase, both quantitatively and qualitatively, in money laundering investigations, prosecutions and court judgments in line with the identified level of risk.
The obligations also include improving asset recovery mechanisms and strengthening the ability to detect and intercept the illicit cross-border movement of cash, precious metals and precious stones. Likewise, Lebanon is expected to pursue terrorist financing investigations and strengthen information-sharing with foreign partners regarding such investigations, in accordance with the recommendations of the Mutual Evaluation Report.
In addition, the authorities are required to strengthen the immediate and effective implementation of targeted financial sanctions, particularly among designated non-financial businesses and professions and certain non-bank financial institutions. They must also implement targeted, risk-based oversight of higher-risk non-profit organizations while ensuring that legitimate activities carried out by those organizations are neither disrupted nor discouraged.
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