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QatarEnergy Halts LNG Production over Iran Attacks

QatarEnergy Halts LNG Production over Iran Attacks
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QatarEnergy Halts LNG Production over Iran Attacks

QatarEnergy Halts LNG Production over Iran Attacks

Qatar's state-run energy firm said on Monday it had halted liquefied natural gas production following Iranian attacks on facilities at two of its main gas processing bases.

"Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products," the company said in a statement.

Earlier, Qatar's defense ministry said one Iranian drone "targeted an energy facility in Ras Laffan Industrial City, belonging to QatarEnergy", referring to the firm's onshore gas processing base 80 kilometres (50 miles) north of Doha.

Another "targeted a water tank belonging to a power plant in Mesaieed", the statement said, referring to an area 40 kilometres (25 miles) south of the Qatari capital, which is also a key site for Qatar's natural gas production.

There were no reports of casualties, the defense ministry added.

The Dutch TTF natural gas contract, considered the European benchmark for LNG prices, jumped almost 45 percent to more than 46 euros ($54).

Jamie Ingram, managing editor of Middle East Economic Survey (MEES), said the halt was "an unprecedented development, with Ras Laffan the largest single LNG facility on the planet," warning there was "scope for prices to rise significantly".

He said the move was "made from an abundance of caution rather than one forced by the scale of the drone attack earlier today".

"It's possibly also intended to drum up international support," Ingram added.

Justin Alexander, an economic expert on Gulf issues and director of Khalij Economics, said it was "clearly a precautionary move" given strikes on Ras Laffan and risks to "extremely flammable gas facilities", adding the main market impact was "the closure of Hormuz", blocking nearly a quarter of global supply.

He added that the QatarEnergy suspension "could increase the delay to the resumption of normal supplies once Hormuz reopens".

While Iran has not officially closed the Strait of Hormuz, through which around 20 percent of global seaborne oil passes, its Revolutionary Guards have warned against transiting the waterway, leaving it effectively shut.

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Business

TotalEnergies Extends Fuel Price Cap in France Through June

This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
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TotalEnergies Extends Fuel Price Cap in France Through June

This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)
This photograph shows the TotalEnergies refinery in Antwerp on May 18, 2026. (Photo by JONAS ROOSENS / Belga / AFP)

Oil major Total Energies said on Wednesday it would extend its policy of capping fuel prices at its French service stations through the month of June as the Middle East crisis continues.

The company said it would ⁠keep the price ⁠caps, first announced in March, at €1.99 ($2.32) per liter for gasoline and €2.25 per liter for diesel.

French Finance Minister Roland Lescure welcomed the ⁠decision but told BFM TV he also would not rule out imposing a new tax on profits energy companies have made during the surge in energy prices provoked by the Iran war.

Several French opposition politicians have advocated for additional so-called windfall taxes ⁠on ⁠oil companies including TotalEnergies since the war began in late February.

TotalEnergies' Chief Executive Patrick Pouyanne said earlier this month the company would end its cap on prices were such a tax approved.

Business

Samsung Workers Approve Bonus Deal after Big AI Profits

FILE PHOTO: Samsung Electronics’ labor union members chant slogans during a protest against the company’s compensation levels ahead of a planned lengthy strike in front of Samsung Electronics semiconductor plant in Pyeongtaek, South Korea, April 23, 2026. REUTERS/Kim Hong-Ji/File Photo
FILE PHOTO: Samsung Electronics’ labor union members chant slogans during a protest against the company’s compensation levels ahead of a planned lengthy strike in front of Samsung Electronics semiconductor plant in Pyeongtaek, South Korea, April 23, 2026. REUTERS/Kim Hong-Ji/File Photo
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Samsung Workers Approve Bonus Deal after Big AI Profits

FILE PHOTO: Samsung Electronics’ labor union members chant slogans during a protest against the company’s compensation levels ahead of a planned lengthy strike in front of Samsung Electronics semiconductor plant in Pyeongtaek, South Korea, April 23, 2026. REUTERS/Kim Hong-Ji/File Photo
FILE PHOTO: Samsung Electronics’ labor union members chant slogans during a protest against the company’s compensation levels ahead of a planned lengthy strike in front of Samsung Electronics semiconductor plant in Pyeongtaek, South Korea, April 23, 2026. REUTERS/Kim Hong-Ji/File Photo

Samsung Electronics union members on Wednesday approved a deal with management securing massive annual bonuses after threatening a major strike, as the global artificial intelligence boom causes the South Korean chip giant's profits to soar.

It means that around 78,000 employees from the company's 125,000-strong domestic workforce are eligible to receive a bonus of roughly $370,000 this year, based on a market estimate of annual operating profit.

Samsung's largest workers' union said in a statement that more than 73 percent of its members had backed the agreement in an electronic vote held over six days.

The deal was struck at the last minute last week to avert an 18-day strike that had raised fears over the impact on South Korea's economy.

Frenzied demand for the memory chips that power AI data centres has turbocharged Samsung's earnings.

The firm in April said first-quarter operating profit soared roughly 750 percent year-on-year, while its market value topped $1 trillion for the first time this month.

Under the union's 10-year deal -- which is tied to ambitious performance targets -- annual bonuses for employees in the semiconductor division would amount to 10.5 percent of their segment's operating profit.

The bonuses will be paid in shares, alongside an additional 1.5 percent in cash, AFP reported.

The new bonus scheme has fueled tensions among workers in other divisions, who will receive different rewards under the deal, as well as subsidiaries and shareholders.

The prospect of a strike had sparked wider concerns in South Korea, where Samsung Electronics alone accounts for around 12.5 percent of gross domestic product and memory chips make up about 35 percent of exports.

It has also fanned a debate over how AI profits should be distributed.

A senior presidential official has floated the idea of a "national dividend" -- arguing that excess AI-related tax revenue could be used to support social welfare programs.

Analysts say large bonuses could help prevent engineering talent from moving abroad, as US firms such as Tesla ramp up investment in AI chips.

According to Samsung's union, workers at rival chipmaker SK hynix -- which also hit a $1 trillion market capitalization on Wednesday -- received bonuses more than three times larger than those paid by Samsung last year.

The promised windfall at both firms has sharply elevated the social status of chip engineers in South Korea.

A simple jacket bearing the SK hynix logo went viral on social media this month as a symbol of wealth and success, with parody posts depicting it as a "golden ticket" to luxury boutiques or better dating prospects.

Yonhap news agency said jobs at Samsung and SK hynix now guarantee "a boost in marriage market value", citing a rise in their "desirability indices" compiled by matchmaking agency Sunoo -- catching up with professions such as doctors and lawyers.

There have been reports of worker discontent over similar issues at Taiwan's chip production giant TSMC, which has also logged record net profits due to AI demand.

The Samsung agreement is fueling labor demands across South Korea, with workers in sectors ranging from biotech and autos to shipbuilding asking for a larger share of corporate profits through bonuses.

Within Samsung Electronics, the deal has deepened divisions between employees in the highly profitable semiconductor business and other divisions such as mobile, display and consumer electronics, where profits have stagnated or declined.

The tensions have already led to legal action, with a smaller union representing workers outside the semiconductor division filing an injunction on Tuesday, seeking to block the agreement they say disproportionately favors chip employees.

Discontent is also spreading among employees at Samsung affiliates including Samsung Display, Samsung SDI and Samsung Electro-Mechanics, which are separately listed and offer significantly smaller bonuses.

Some shareholders have also voiced opposition, arguing the agreement lacked their approval. A group of retail investors said they were prepared to pursue legal action.

Business

Gold Falls as Renewed US-Iran Tensions Dampen Peace Hopes, Clouds Interest Rate Outlook

A saleswoman adjusts gold jewellery for sale at a shop in Lianyungang_ in China痴 eastern Jiangsu province - AFP
A saleswoman adjusts gold jewellery for sale at a shop in Lianyungang_ in China痴 eastern Jiangsu province - AFP
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Gold Falls as Renewed US-Iran Tensions Dampen Peace Hopes, Clouds Interest Rate Outlook

A saleswoman adjusts gold jewellery for sale at a shop in Lianyungang_ in China痴 eastern Jiangsu province - AFP
A saleswoman adjusts gold jewellery for sale at a shop in Lianyungang_ in China痴 eastern Jiangsu province - AFP

Gold slipped on Tuesday as US strikes in Iran pushed Brent prices higher, stoking inflation worries and clouding the outlook for US interest rates.

Spot gold was down 0.7% at $4,537.10 per ounce, as of 1052 GMT. US gold futures for June delivery was unchanged at $4,536.80.

"The uncertainty triggered an uptick in oil prices, sharpening inflationary fears and reinforcing hawkish Federal Reserve expectations, creating a headwind for non-yielding gold," ActivTrades analyst Ricardo Evangelista said.

"The path of least resistance for gold prices remains to the downside... Traders will remain focused on the US-Iran talks, while also looking ahead to the release of US PCE inflation data."

Brent crude oil prices rose sharply after the US military carried out strikes in Iran, dampening hopes of a swift resolution to the Middle East conflict.

US Secretary of State Marco Rubio said on Tuesday that negotiating a deal with Iran could "take a few days."

Elevated crude oil prices can accelerate inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.

Markets are pricing in a Fed rate hike before year-end, with a 41% chance of a 25-basis-point hike in December, according to CME Group's FedWatch tool, according to Reuters.

Investors now await the US Personal Consumption Expenditures (PCE) data for April due on Thursday, for more cues on US monetary policy.

Meanwhile, UBS lowered its year-end gold price target by $400 to $5,500 due to persistent risks from higher yields and a stronger dollar.

However, "elevated global debt burdens, persistent fiscal deficits in the US, and continued reserve diversification trends should again elevate the strategic case for hard assets, especially as oil prices likely moderate toward the end of the year," UBS said in a note.

Spot silver fell 2.2% to $76.37 per ounce, platinum lost 0.9% to $1,949.54, and palladium slid 1.7% to $1,374.